Honda Considers Building New Factory in North America

Key Takeaways

• Honda is considering building a new factory in North America to increase sales and flexibility.
• North America is Honda’s largest and most profitable market, making up around 40 percent of the company’s global sales in 2025.
• Honda’s North American plants are already running at 90 percent capacity, prompting the company to consider a new plant.
• A new factory would help Honda grow its North American sales and provide a buffer against supply chain disruptions.
• Plans for a new factory are still in their infancy, and it would likely be several years before a new factory would become operational.

Why is Honda Considering a New Factory in North America?

Honda is considering building a new factory in North America to increase sales and flexibility. According to CEO Toshihiro Mibe, the company wants to produce cars where there is demand, and North America is Honda’s largest and most profitable market.

Honda’s North American plants are already running at 90 percent capacity, and a new factory would provide more flexibility and help the company grow its sales in the region.

What is the Current State of Honda’s North American Operations?

Honda has several factories in North America, including two in Ohio, one in Indiana, and one in Alabama. These factories produce some of Honda’s biggest sellers, including the CR-V, Accord, and Civic.

According to GlobalData, Honda’s U.S. factories are operating at 85 percent of their 1.2 million total capacity, while the company’s North American factories are running at 90 percent of their 1.8 million total capacity.

How Would a New Factory Benefit Honda?

A new factory would help Honda grow its North American sales and provide a buffer against supply chain disruptions. According to Mibe, the existing factories are “almost in full production,” and a new factory would give the company some extra leeway to handle disruptions.

What is the Timeline for a New Factory?

Plans for a new factory are still in their infancy, and it would likely be several years, possibly even a decade, before a new factory would become operational.

Frequently Asked Questions

Q: Why is Honda considering a new factory in North America?

A: Honda is considering a new factory in North America to increase sales and flexibility. North America is Honda’s largest and most profitable market, and the company wants to produce cars where there is demand.

Q: How many factories does Honda currently have in North America?

A: Honda has several factories in North America, including two in Ohio, one in Indiana, and one in Alabama.

Q: What is the current capacity utilization of Honda’s North American factories?

A: According to GlobalData, Honda’s U.S. factories are operating at 85 percent of their 1.2 million total capacity, while the company’s North American factories are running at 90 percent of their 1.8 million total capacity.