Honda had some big electric vehicle plans in America, and that all went up in smoke. The 0 Series, which was planned for production in Ohio, got killed before it had a chance to live. The rebooted Acura RSX was canceled. More recently, Honda announced the Prologue would officially die at the end of the 2026 model year. Failed EV investments have costs Honda billions, and at a glance, it would seem the Japanese brand is in a world of hurt. But, it’s not as bad as one might think.
Case-in point: Honda sales in America are booming. The company just had its best June in five years with sales up 17% for the month. For the year, American Honda – including sales from Acura – is up 2.4%. Car sales are up 14.1% for the year, and the CR-V is on track to beat the Toyota RAV4 as America’s best-selling vehicle that isn’t a pickup truck. There is big-time demand for Honda vehicles in the US, and that has Honda CEO Toshihiro Mibe wanting more manufacturing capability to meet that demand.
Build More Cars In America, For Americans
2026 Honda CR-V Hybrid TrailSport front three-quarter angle in green while drivingHonda
The boss of bosses at Honda recently gave an interview with Japanese publication Yomiuri Shimbun, in which he discussed US manufacturing. It seems the company is nearly at capacity in North America, running about 90% per Automotive News. That doesn’t leave much wiggle room should demand increase further. And if buyers can’t get the vehicles they want in a timely manner, there’s a big risk of losing the sale altogether.
“It’s almost in full production. If you don’t have a buffer, you can’t recover production,” said Mibe.
That’s why Mibe would love to build another manufacturing plant in the US. Right now, Honda has 12 manufacturing facilities, with seven of those dedicated to assembling cars and powertrain components. The hub is in Ohio, but Honda operates facilities in Indiana and Alabama as well. His ideal plan would add an eighth factory for vehicles.
“I want to increase the number of sales in North America a lot. The basic idea is to produce in a place where there is demand.”
-Toshihiro Mibe, Honda CEO
Can Honda Afford A New Factory Right Now?
Honda Engine Plant ConstructionHonda
Of course, wanting something and getting something are two different things. Demand for Honda vehicles is certainly strong, but expansion costs money and Honda just wrote off billions reversing course on its EV plans. In fact, the financial hit was so bad that the company posted its first full-year financial loss in 69 years – going all the way back to when the company first went public. Mibe even allegedly faced something of a coup from former Honda executives, who tried to get him fired as CEO.
CarBuzz reached out to Honda in the US in hopes of getting some additional insight. A company spokesperson didn’t confirm any plans to build a new factory, but didn’t shut the door on it, either:
“Honda is continually evaluating our production requirements to support the needs of our customers, consistent with our leading commitment to build products in America, which is now approaching 50 years.
The possibility of a capacity increase is always a consideration for the future growth of our automobile business in North America; however, no decisions have been made regarding a new US plant.”
At least one thing is clear. Honda Civic sales are up 3.3%, CR-V sales are up 6.4%, and Accord sales are up a whopping 32.5% for the year. All these vehicles are built in North America, so if demand continues to rise, Honda may have no choice but to invest in more manufacturing.
CarBuzz Insight – Why This Matters:
2026 Honda Accord SE front 3/4 high angle in black while drivingHonda
Right now, the only thing predictable in the auto industry is that things are largely unpredictable. Political headwinds is a term often tossed around these days, and those headwinds can change day by day, or even hour by hour if something upsets the Trump administration in Washington. But, there is a push for more affordable vehicles and strong sales for Civic, Accord, and CR-V suggest buyers are reconsidering their needs for new family vehicles.
The big question is whether that trend will still exist in two or three years – the time it generally takes to get a new plant built and running. Political headwinds will change by then, but if Honda can future-proof its new factory to accommodate multiple scenarios, then there’s hardly a downside to expanding in America.
Source: Automotive News
