Japanese automaker Honda Motor plans to increase its investment in three auto manufacturing facilities in Ohio, US, by $300m.

This decision is aimed at enhancing the plants’ capability to manufacture electric vehicles (EVs), hybrids, and gas-powered vehicles on the same assembly line, reported Reuters.

Honda’s US unit senior vice-president Jennifer Thomas said that the firm had in 2022 announced plans to invest $700m in these facilities and this figure has now been revised to $1bn now.

Honda is collaborating with LG Energy Solution to construct a battery plant in Ohio as part of its Honda EV Hub.

The total investment in the project is estimated to be $4.4bn.

The company is retooling its Marysville Auto Plant, East Liberty Auto Plant, and the Anna Engine Plant, all located in Ohio.

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Thomas said: “We are creating the flexibility to produce ICE, hybrid and battery-electric vehicles on the same production lines in Ohio. This enables us to quickly respond to changes in customer demand and market conditions.”

The investment announcement comes amid policy shifts in the US.

Thomas expressed concerns regarding the US administration’s intention to reduce EV incentives.

Recently, US President Donald Trump revoked a 2021 executive order signed by former president Joe Biden that aimed for half of new US vehicle sales to be electric by 2030.

In the executive order, Trump also announced  halting funding for EV charging stations, sought to end state waivers for zero-emission rules by 2035, and considered eliminating EV tax credits.

Thomas said: “We must find a way to avoid the dramatic political whiplash every four years in favour of policies that promote stability and allow for our industry’s strategic decision-making.”

Thomas added that the incentives for EVs “are a powerful factor in our ability to compete, and undermining incentives leads to a decrease in EV sales”.