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Honda Is Betting $3 Billion On Hybrids As It Pulls Back From EVs

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Honda Is Betting $3 Billion On Hybrids As It Pulls Back From EVs

Honda is building a new car factory in the United States, which will primarily manufacture hybrid and traditional gas vehicles. The new facility, which is estimated to cost $3 billion, will be Honda’s fourth auto plant in Ohio and the company’s ninth car-related production facility in the U.S.

The move is part of the Japanese automaker’s push to introduce no fewer than 15 new hybrid models globally, with the majority of them being destined for the American market, too. It’s also Honda’s first big step away from its ill-fated electric-car push, which ended up with a completely new vehicle platform and three EVs being retired before even one production-ready unit had rolled off the assembly line.

As a reminder, the Acura RSX, Honda 0 Series Saloon, and Honda 0 Series SUV were supposed to go into production at a new EV hub in Ohio, but the entire plan was scrapped due to major financial losses. After canceling the 0 Series project, the company posted its first loss in nearly 70 years, with $9 billion going down the drain.

After the whole EV debacle, Honda decided to go back to the drawing board and chose ultra-efficient hybrids as its next big thing in the U.S. The car manufacturer is already knee-deep in the development of multiple hybrid models, with the first cars expected to debut in 2028.

To support the new strategy, Honda’s new plant, which is located right next to three of its other facilities in Ohio, is scheduled to become operational in 2029.


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