Honda has announced that it will shift production of its five-door Civic Hybrid model from Japan to the United States. This move is a strategic response to the 25% tariffs on imported cars proposed by President Trump. While the company has confirmed this transition, it has not verified claims suggesting that up to 90% of its US-market vehicles could soon be produced in the US.
According to a Honda spokesperson, production of the Civic Hybrid will be moved from the Yorii, Japan plant to the company’s Indiana facility. The Japanese plant is expected to stop manufacturing the model by the end of June or July, but Honda has not specified when production will begin in Indiana.
The Reuters report provides few details, but this move is likely to be cited by President Trump as proof that his tariff policies are having an impact. The administration has argued that high tariffs on imported vehicles will encourage automakers to increase production in the US. While some companies are adjusting, others may not, and consumers could ultimately bear the cost of these tariffs.
Honda’s Indiana plant, which currently employs around 2,700 people, already produces the Civic hatchback and CR-V models. The facility also plans to take over the production of the Accord from Marysville, Ohio, though it is uncertain if the relocation of Civic Hybrid production will affect these plans.
Earlier reports suggested that Honda might move as much as 90% of its US-bound vehicle production to American plants in the coming years. This would include shifting production of the Civic sedan and CR-V from Canada, as well as relocating HR-V production from Mexico. Honda Canada has declined to comment on potential changes but stated that its facilities are expected to remain at full capacity for the foreseeable future.
The US market is crucial for Honda, accounting for 40% of its global sales. Fortunately, about 70% of the vehicles Honda sells in the US are already produced locally.
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