Honda To Invest $30M In Ohio Facilities To Boost Production

Honda Motor Co., Ltd. (NYSE:HMC) reportedly made the announcement of investing over $30 million at its three facilities in Ohio. This investment is in sync with the company’s strategy to ramp up the production of its electric vehicles.

Notably, this Japanese auto giant just began the production of its new 2019 Honda Insight hybrid model at its Greensburg, IN facility. In sync with that strategy, the company announced to invest $29 million at the Honda Transmission Manufacturing of America plant in Logan County’s Russells Point. This facility is engaged in the production of Insight’s twin electric-motor unit, which is an important part of the vehicle’s powertrain. Additionally, the company is spending smaller amounts at its Marysville facility and Anna, OH engine plant.

The investment is in line with Honda’s Electrification Initiative. In the coming days, the company aims to introduce electrified powertrains in all of its core models.

Currently, Honda has a Zacks Rank #5 (Strong Sell). Over the past six months, shares of Honda have underperformed the industry it belongs to. During this time frame, shares of the company have risen 3.6%, whereas the industry has grown 5.4%.

A few better-ranked stocks in the auto space are Oshkosh Corporation (NYSE:OSK) , Ferrari N.V. (NYSE:RACE) and Gentex Corporation (NASDAQ:GNTX) . While Oshkosh and Ferrari sport a Zacks Rank #1 (Strong Buy), Gentex carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have risen 14.5% over the past year.

Ferrari has an expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 59.8%.

Gentex has an expected long-term growth rate of 13%. In a year’s time, shares of the company have gained 17%.

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