Honda Vice President Noriya Kaihara said the automaker’s North American production capacity has nearly reached its limit and that a new plant is necessary, with a decision needed within one to two years and operations targeted for around 2030. The facility would be Honda’s eighth assembly plant in the region and has been linked to expanding hybrid output, including a leading proposal for hybrid SUVs, as the company plans 15 hybrid models by fiscal 2029 mainly for North America after canceling three U.S.-planned EV models. Kaihara warned that if a USMCA agreement cannot be reached, Honda may have to change its approach, and said the company is not passing tariff costs on to North American buyers, absorbing the burden in a way that could weigh on earnings. Broader trade tension, including announced U.S. tariff hikes on Canadian autos and parts, continues to shape the timing and scale of the investment, while plant location, investment size, and model mix remain undisclosed.