Redesigning production strategies: Honda revamps its Ohio factories
In a significant move towards a sustainable future, Honda is transforming its manufacturing operations in Ohio State, producing gasoline, hybrid-electric, and battery electric vehicles on the same assembly lines. This shift is part of the company's ambitious plan to have EVs and fuel cell vehicles account for 40% of global auto sales by 2030, and 100% by 2040.
The journey towards electrification has proven more expensive than initially anticipated, leading automakers like Honda to rethink their production strategies. However, Honda remains steadfast in its commitment to this transition.
The focus in Ohio State is not just on EV production, but on fundamentally reimagining the manufacturing approach. Simplicity is key in the factory design, with an aim to reduce walking requirements for workers and provide more space for parts delivery and staging.
The EV battery plant is expected to be completed by the end of the year, and Honda is installing new EV-specific manufacturing equipment, including the first of six 6,000-ton high-pressuredie cast machines at the Anna plant.
Honda is collaborating with LG Energy Solution in the development of EV production at its Ohio State plant, with a $3.5 billion joint EV battery facility expected to be completed in 2025. EV production in Ohio State is set to begin in late 2025.
In Marysville, Honda is retooling the plant to sub-assemble the Intelligent Power Units that will be installed into Honda EVs. The company has also updated its global electrification strategy this year, prioritising a 35% reduction in vehicle production costs over the next decade.
The success of this transition is already evident. Hybrid sales have boosted Honda's profits this year, with Q1 profits increasing by 23% year over year to a record 484.7 billion yen ($3.3 billion).
In a further exciting development, Honda is planning to produce the first Acura EV at its Ohio manufacturing hub late next year. The company has committed $700 million for a continent-wide EV production upgrade, demonstrating its commitment to a sustainable and electrified future.
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