Honda Shifts Accord Production to Indiana in Line with EV Strategy

Honda Motor Co.’s U.S. unit said it will transition its Accord sedan production to Indiana in 2025 as part of its shift to EV production. This move marks Marysville, Ohio’s first plant to transition to making EVs. Honda and South Korea’s LG Energy Solution Ltd. announced they would build a planned $4.4 billion joint-venture battery plant near Jeffersonville, Ohio, which would cover more than 2 million square feet and aim for about 40 Gigawatt hours of annual production capacity. Honda is investing $700 million to retool three Ohio plants for electric vehicle production by 2026.

Marysville will begin preparing for EV production as early as January by consolidating its two production lines to enable the building of the EV infrastructure. Honda began assembling the Accord in Marysville in November 1982, making it the first Japanese automaker to produce cars in the United States. In recent years, Americans have been moving away from sedans to sport utility and crossover vehicles.

In 2020, Honda sold 154,600 Accords in the U.S., down 24% from the previous year. The company said Accord production will be transferred to its Indiana auto plant, which currently builds the Civic Hatchback and CR-V. Additionally, Honda’s transmission plant in Georgia will dedicate one production line to e-axle production, a key component of EVs. Anna, Ohio’s engine plant will shift production of some engine components to a Honda engine plant in Alabama to prepare for the production of battery cases for EV models.

Honda’s decision to focus on EVs aligns with the global trend for fuel efficiency and electrification of transportation. The government’s initiative to shift the auto industry towards EVs has been catalyzed by environmental reasons such as reducing greenhouse gas emissions and dependence on non-renewable fossil fuels.

The creation of jobs in EV manufacturing has the potential to boost local economies, and the fact that Honda’s battery plant is being built in Ohio demonstrates the state’s support of the EV shift. Tennessee has also welcomed EV manufacturers with the creation of jobs as the key motivator.

The shift to EV production will require an upgrade in skills, knowledge and education within the current workforce. According to a recent report, the EV industry will face a shortage of thousands of workers in the next few years, highlighting the need for investment in training programs.

In conclusion, Honda’s decision to focus on EV production and relocate its Accord production to Indiana reflects a commitment to the government’s initiative to shift the auto industry towards EVs. The shift to EV production will require a significant investment in upgrading skills and knowledge within the current workforce. This shift has the potential to boost local economies, create new jobs, and reduce dependence on non-renewable fossil fuels.