Japanese automaker Honda Motor will build a new $3-billion auto plant in Ohio to make hybrid vehicles, creating 2,000 jobs.

The company has said that the plant will be able to produce 240,000 vehicles annually and begin production in 2029.

It will increase its US auto production capacity to 1.3 million vehicles annually and North American capacity to 1.9 million.

Honda is also making a Canadian dollar (C$) 867-million commitment to its Canadian operations, including a C$166-million investment in its Alliston, Ontario, operations, maintaining its 4,000-strong Canadian workforce.

Honda has planned another $338-million investment in Ohio and unspecified new investments in Georgia and Alabama.

The company had announced these plans in May to add 15 new Honda and Acura hybrid models worldwide by 2030.

It had also announced that it would scrap electric vehicle (EV) sales goals and had indefinitely suspended a $11-billion Canadian EV project as a part of a $9-billion EV writedown.

The Japanese company has added that it will invest in Alabama to build a new V6 hybrid engine and retool its Ohio engine plant to build a new four-cylinder engine.

It will also retool transmission plants in Ohio and Georgia and plans to reintroduce engine production in Ontario.

A number of foreign automakers have announced major new investments as they face tariffs imposed by US President Donald Trump’s administration.