“Honda established a highly flexible manufacturing environment in Ohio capable of building the right products to meet customer demand,” Honda spokesman Chris Abbruzzese said. “That flexibility remains central to our strategy. We will continue producing gasoline and hybrid vehicles at both the Marysville Auto Plant and the East Liberty Auto Plant.
“Additionally, discussion is moving forward as part of our joint venture partnership with LG Energy Solution to localize production of hybrid batteries and energy storage systems at L-H Battery Co. in Jeffersonville,” he added.
Honda’s decision affects the development and market launch of three EV models in the U.S. — the Honda 0 SUV, Honda 0 Saloon, and Acura RSX, the company said Thursday.
“Honda determined that starting production and sales of these three models in (the) current business environment where the demand for EVs is declining significantly would likely result in further losses over the long term,” the automaker said Thursday.
The hub was a head-turning announcement for Honda in the fall of 2022, with the company talking of a $700 million investment in retooling its Marysville and East Liberty assembly plants and its engine plant in Anna for EV production.
Honda also embarked on the building of an EV battery plant outside Jeffersonville, itself identified as a $3.5 billion investment.
What started as a joint-venture EV battery plant, built with LG Energy Solution, covers the equivalent of about 78 football fields near Jeffersonville, in Jefferson Twp., Fayette County.
In all, Honda in recent days has reported its first annual loss in decades, facing $15.7 billion in restructuring costs for its EV business.
“Honda will reassess its resource allocations and further strengthen its hybrid models,” the company said.
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