2 months ago
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A report out of Japan has raised questions about whether Honda might move some of its vehicle production out of Canada and Mexico and into the United States. The company has not confirmed any plans, but the news gathered attention from government officials in Canada.
The Nikkei Newspaper in Japan reported Tuesday that Honda is “considering shifting some of its car production to the US” to avoid President Donald Trump’s 25 percent tariffs on imported vehicles. The article says the company wants to make 90 percent of the cars it sells in the US within the country, up from about 70 percent now.
This shift would affect the production of CR-Vs and Civics currently made in Canada and could impact Honda’s plant in Alliston, Ontario, which employs roughly 4,200 people and built about 375,000 vehicles in 2023, reports Bloomberg.
However, Canadian officials are pushing back, saying the report is wrong.
Federal Industry Minister Anita Anand said on social media, “We are aware of the unconfirmed reports of future changes to Honda's production plans for Canada. I am in close contact with the company, and Honda has communicated that no such production decisions affecting Canadian operations have been made, and are not being considered at this time. I will be meeting with the CEO of Honda Canada later today to discuss further.”
Ontario Premier Doug Ford also responded to the report, saying the president of Honda Canada told him it was “inaccurate.” According to Ford and his office, Honda does want to increase its US production but not “at the expense of Canadian production," the Toronto Star reported.
Ford’s office added that Honda assured them the Alliston plant is still running at full capacity and that there are no job losses expected.
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