Japanese automobile maker Honda is reconsidering its North American production plans. The firm is examining the possibility of shifting part of its vehicle manufacturing from plants in Mexico and Canada to facilities in the United States. The goal is to have roughly 90 percent of the vehicles sold domestically assembled within the country. This development arises as a response to recent changes in U.S. trade policies that impose higher costs on imported autos.
Reports suggest Honda plans to boost its domestic output by nearly 30 percent over the next two to three years. This strategy follows a government decision that levies a 25 percent tax on imported vehicles. To reduce the extra expense, Honda will produce its upcoming Civic hybrid model at an Indiana facility rather than in Mexico.
Last year, the United States represented almost 40 percent of Honda’s global sales, with close to 1.4 million vehicles sold, including Acura models. Nearly 40 percent of these vehicles were assembled in Canada or Mexico. Preliminary data for this year indicate U.S. sales climbed by around 5 percent during the first quarter, with total sales nearing 352,000 units.
Honda will relocate production of the CR-V SUV from Canada and the HR-V SUV from Mexico to American facilities. In light of these moves, the company is also considering hiring additional U.S. workers. A shift to a three‐shift schedule and weekend operations may follow to meet higher production targets while keeping costs under control.
This development highlights Honda’s determination to adjust its production footprint in response to shifting policy requirements and to secure its market position in the United States.
