(Reuters) Honda units in Mexico and Canada denied that the Japanese firm is considering moving part of its production from those countries to the United States so that 90% of cars sold in US territory are manufactured there, in response to the new Washington tariffs to the sector.
Earlier, the Nikkei newspaper had reported that Japan’s second largest automotive for sales would plan to increase the production of vehicles in the United States up to 30% in two or three years as a reaction to the decision of President Donald Trump to impose a 25% tax on imported cars.
“Honda has not made production decisions that affect operations in Mexico, nor are they being considered at this time,” said the Mexican unit of Honda by email. “Honda will continue to consider the global system and optimal assignment.”
Lee: Honda does not plan to modify its production plans in the country: Ebrard
In another statement, those responsible for the operation of the company in Canada also pointed out that “no change is being considered at this time.”
“We constantly study options for future contingency plans and use short -term production change strategies when necessary,” said Honda Canada. “We trust our ability to continue to effectively draw the current market conditions.”
Honda has plants in Jalisco, where it produces more than 70,000 vehicles per year, and Guanajuato, which has the capacity to manufacture 200,000 units a year, while in Canada it was the second largest car manufacturer by volume in 2024 and operates a plant in Alliston, Ontario.
The Canadian Minister of Innovation, Anita Anand, said in the X network that Honda “has reported that no production decision has been made that affects Canadian operations,” and added that he would meet with the CEO of the local unit of the company.
Lee: Canada states that Honda has no plans to transfer part of its production to the US
The Secretary of Economy, Marcelo Ebrard, reported in the same social network that executives of the Japanese firm in the Latin American country told him that “there is no modification to their production plans in Mexico.”
In the weeks prior to the entry into force of the new US tax, Reuters had already reported that Honda plans to manufacture its next -generation Civic hybrid in the American state of Indiana, instead of Mexico, to avoid possible tariffs.
The United States was the largest Honda market last year, representing almost 40% of its global sales. The automaker sold 1.4 million vehicles, including Acura models, in the US market last year. It imported approximately two fifths of those cars from Canada or Mexico.
Honda registered a 5% increase in its sales in the United States, to almost 352,000 vehicles in the first three months of this year.
The company will transfer the production of the SUV CR-V from Canada to the United States and that of the HR-V SUV from Mexico to the world’s largest economy, according to Nikkei.
To increase production, Honda is considering hiring more US workers, according to the newspaper.
This measure would allow Honda to change two shifts to three and extend production for weekends, Nikkei added.
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