Honda has denied reports suggesting it plans to shift vehicle production from Canada and Mexico to the United States in response to new U.S. auto tariffs.
In separate statements, Honda Canada and Honda Mexico confirmed that no production changes are currently being considered. “No changes are being considered at this time,” Honda Canada stated in an email, while Honda Mexico emphasized it has not made any decisions affecting its local operations.
The clarification follows a report by the Nikkei newspaper, which claimed Honda was evaluating a shift in some of its production to the U.S. to meet a target of producing 90% of the vehicles sold in the country domestically. The report also suggested Honda was preparing to increase U.S. output by up to 30% over the next two to three years to offset the potential impact of a proposed 25% tariff on imported vehicles.
In response, Honda Canada noted that while the company continually assesses options for contingency planning and may implement short-term production adjustments as needed, it remains confident in managing evolving market conditions. Honda Canada operates a major manufacturing facility in Alliston, Ontario, and was the country’s second-largest auto producer by volume in 2024.
Mexico’s Economy Minister Marcelo Ebrard also confirmed via a social media post that Honda executives have assured the Mexican government there are no plans to alter production in the country. Honda runs manufacturing plants in Guanajuato and Jalisco.
Although Honda has not announced formal production shifts, earlier reports indicated the company plans to produce the next-generation Civic hybrid in Indiana rather than Mexico to avoid potential tariff costs. The U.S. is Honda’s largest market, accounting for nearly 40% of its global vehicle sales last year.
The automaker sold 1.4 million vehicles in the U.S. in 2024, including Acura models, with approximately 40% of those imported from Canadian and Mexican factories.
In the first quarter of this year, Honda recorded a 5% increase in U.S. sales, reaching nearly 352,000 vehicles. According to the Nikkei, the company is preparing to relocate CR-V SUV production from Canada and HR-V SUV production from Mexico to U.S. facilities.
To support the potential expansion, Honda is reportedly considering increasing its U.S. workforce and transitioning to a three-shift production schedule, including weekend operations.
