NEW YORK - Honda Motor Co. said Tuesday it is considering building a new assembly plant in the United States to boost hybrid vehicle production, as the company reshapes its manufacturing and sales strategies following a revamp of its electric vehicle business.
A Honda spokesperson said, "It is true that the company is considering building (a new assembly plant) but has not yet reached a final decision."
According to sources familiar with the matter, the Japanese automaker plans to make a final investment decision within the next few years and aims to start operations by around 2030. The company is considering producing hybrid sport utility vehicles, which are in high demand at the plant.
Honda now considers strengthening its hybrid lineup to be a key part of its strategy, with plans to launch 15 new models, primarily in North America, by fiscal 2029.
The investment decision would also be affected by the progress of negotiations over the United States-Mexico-Canada Agreement, or the USMCA, a free trade accord that Washington is seeking to revise, the spokesperson added.
The carmaker has built a supply chain across North America, including Canada and Mexico, and may revise its plan for a new U.S. plant depending on the outcome of the negotiations.
U.S. President Donald Trump said earlier this week that tariffs on all automobiles and auto parts imported from Canada would be raised to 50 percent from Jan. 1 next year. The move is seen as an attempt to pressure Canada to make concessions amid continuing tit-for-tat tariffs between the two countries.
