Honda pins growth hopes on hybrids with $3bn US investment

{"text":[[{"start":7.76,"text":"Honda will invest $3bn to build its first new US car plant in two decades to boost hybrid production as the Japanese group pins its growth hopes on the vehicles’ rising popularity in the second-largest automotive market."}],[{"start":21.72,"text":"The new assembly plant in Ohio is set to increase its US production capacity by a fifth to 1.3mn vehicles a year and create 2,000 jobs once production begins in 2029."}],[{"start":33.72,"text":"The Ohio factory — Honda’s fifth in the US — will be accompanied by investment in existing facilities in Ohio, Alabama and Georgia, aimed at strengthening the production of hybrid cars and their engines and systems."}],[{"start":46.04,"text":"The investment comes after Honda vowed in May to expand hybrid production, especially in the US, after a disastrous electric vehicle strategy U-turn led to its first annual loss in 70 years and ¥1.6tn ($10bn) of EV-related losses."}],[{"start":61.84,"text":"Japanese carmakers, led by Toyota, have been struggling with US tariffs on imported vehicles and components of 15 per cent — especially for hybrid systems, which have less US localised production."}],[{"start":73.4,"text":"Toyota said last year that it would invest almost $1bn to strengthen local production in five US states of its hybrid vehicle systems, comprising batteries, motors and specialised engines."}],[{"start":84.56,"text":"Honda’s strategic pivot has been paying off as shares have since rallied by 50 per cent, close to a record high, helped by the booming popularity of its motorcycles and hybrid cars."}],[{"start":95.48,"text":"Its US sales have risen by 5 per cent this year amid strong demand for hybrid versions of its CR-V compact SUV, Accord and Civic models."}],[{"start":104.28,"text":"Soaring petrol prices triggered by the Iran war have boosted the popularity of hybrids in the US, while EVs have remained somewhat muted after subsidies were removed."}],[{"start":null,"text":"

"}],[{"start":113.92,"text":"Chief executive Toshihiro Mibe, who came under pressure to step down earlier this year, said in May that the company would introduce 15 new models by 2030, primarily targeting North America."}],[{"start":125.36,"text":"In particular, Honda will provide hybrid options on larger SUVs that use a new V6 engine, which the investments will help to manufacture."}],[{"start":133.82,"text":"The $3bn investment is the first major pledge by a Japanese company to be made since the US midterm elections, signalling ongoing confidence in the strength of America’s economy and its role as a haven from Chinese competition."}],[{"start":145.72,"text":"“We are making one of the most significant commitments in our history to position Honda for the next 50 years,” said Bob Nelson, executive vice-president of American Honda Motor. “These investments strengthen America’s role as a cornerstone of Honda’s global future.”"}],[{"start":162.24,"text":"Share prices of Japanese carmakers have risen since the midterms on the prospect of lower tariffs under the Democrats and improved relations with Canada, where Honda and Toyota have plants. Honda also announced a far smaller investment in Canada on Monday."}],[{"start":176.98,"text":"Honda is due to report second-quarter results later on Tuesday, which are expected to show operating profit of ¥249bn ($1.57bn), a 26 per cent increase over the same period a year ago."}],[{"start":194.72,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1794292859_5718.mp3"}