Honda Mulls Fourth U.S. Plant While Extending China Joint Venture

Honda CEO Toshihiro Mibe said the automaker is weighing the construction of a fourth vehicle assembly plant in North America to boost its U.S. sales, where the market accounts for about 40% of global revenue. Existing U.S., Mexican and Canadian facilities are operating at roughly 85‑90% capacity, prompting the company to consider a new site that would add production flexibility and a buffer against supply‑chain disruptions.

At the same time, Honda confirmed it will extend its joint venture with Guangzhou Automobile Group in China until 2038, continuing investment despite a steep drop in Chinese sales from 1.63 million units in 2020 to about 645 000 last year. The extension supports Honda’s strategy to revive its presence in the world’s largest auto market and to sustain models such as the upcoming Lexus TX MPV/SUV.

Honda indicated no new investment plans for Europe in the near term, focusing resources on North America and China to strengthen its market position.