Honda will build a new electric vehicle plant in the United States

According to foreign media reports, Honda Motor will soon announce the establishment of a new electric vehicle factory in the United States, and is expected to announce the location of the plant soon. Still, the company has questions about how much demand for electric cars and electric pickups is in the U.S. market.

(Image source: Honda Motor)

As part of a joint development agreement with General Motors, Honda will launch two pure electric vehicles in the U.S. in 2024, with GM providing batteries for Honda. Honda has accelerated its plans to electrify its product lines in line with industry trends and shifts in government policy, but remains cautious about the penetration of electric vehicles.

Dave Gardner, executive vice president of Honda's U.S. subsidiary, said, "We have informed Honda dealers that sales of Honda electric vehicles will initially be regional. Now that all car companies are trying to bring electric vehicles to the market, how much consumer demand for electric vehicles is there? ”

Earlier, a Ford Motor Company executive said that the share of electric vehicles in the U.S. market could increase to 10 percent this year.

Globally, Honda plans to phase out its gasoline-powered vehicles by 2040 as part of a commitment by Honda's new CEO, Toshihiro Mibe. Previously, GM and Volkswagen made similar commitments.

Honda originally hoped that the U.S. government would help boost demand for electric vehicles through fiscal incentives, but the company has joined other foreign automakers in opposing the Biden administration's electric vehicle subsidy program, which gives the largest discount on electric vehicles produced by U.S. union workers, which could prevent consumers at Honda and other foreign automakers from receiving the highest subsidies because their U.S. factories don't have unions.

Honda has not revealed where its all-electric Prologue and a pure electric SUV from its upscale brand Acura will be produced, a Honda spokesperson said, a decision that will be announced soon.

Honda expects overall U.S. auto sales to recover slowly as supply chain disruptions limit the supply of parts. Honda expects its main brand, Honda, to sell between 1.2 and 1.3 million units in the U.S. in 2022, and acura brands to deliver 160,000 units, essentially the same as last year's total sales of 1.47 million units.