Honda May Manufacture Almost All Cars Sold in the US Right Here in America | Carscoops

      The Japanese car manufacturer might transfer production from Canada and Mexico to the USA.

      Honda is considering relocating 90 percent of its vehicle sales for the US market to its American factories. Models such as the HR-V, CR-V, and Civic could be shifted from Canadian to US assembly lines. Currently, around 70 percent of Honda’s sales in the US come from vehicles made within the country.

      As global trade tensions rise, automakers are rushing to adjust their strategies. The ongoing tariff conflict is compelling car manufacturers to make quick and critical decisions about their production locations and methods. Nearly all major automakers are contemplating their next steps, and Honda appears to have its own strategy, focusing on manufacturing cars in the same market where they are sold.

      Amid this context, some companies are stopping exports entirely, while others are quietly increasing prices. A recent report suggests that Honda might take a different route by significantly enhancing its production capacity in the USA. The intention is to shield itself from tariffs by producing nearly all the cars it sells in America, locally.

      The US market accounts for about 40 percent of Honda's total sales, translating to roughly 1.42 million vehicles annually. Of these, approximately 70 percent are already manufactured in the USA, encompassing models like the Accord, Pilot, Odyssey, and Ridgeline. Consequently, the company is already mitigating the impact of the major new tariffs on its US-made vehicles, although imported parts for these cars still face tariffs; Honda reportedly aims to reduce this burden even further.

      To facilitate this, the company could transfer up to 90 percent of its production for cars aimed at the US market to the USA over the next few years, according to Nikkei Asia. The publication expects that production of the Civic sedan and CR-V will be moved from Canada to the USA, along with the HR-V, which will cease production in Mexico and relocate to the US. Honda plans to transition from a two-shift to a three-shift operation and hire additional workers to boost production.

      It’s important to note that this does not necessarily mean that production in Canada or Mexico will decrease. For instance, Canada has imposed tariffs on US-manufactured vehicles, which means Honda might maintain production for local markets in both countries.

      This development occurs as other automakers are also considering their strategies in the context of the tariff war. Hyundai and Nissan are exploring the possibility of increasing production based in the US, while Audi and Jaguar Land Rover are completely suspending US exports; others, such as Mitsubishi, are temporarily ceasing shipments to US dealers. In light of this, Honda seems to be in a favorable position to leverage its US production capabilities compared to many of its competitors.

      Update: In response to the report, Honda Canada issued a statement that, while not addressing the increase in US production, confirmed that its manufacturing plant in Alliston, Ontario will continue operating at full capacity for the foreseeable future. The statement read:

      “This was not an announcement by Honda and we cannot comment on the specifics of this morning’s headlines. However, we can confirm that our Canadian manufacturing facility in Alliston, Ontario, will operate at full capacity for the foreseeable future and no changes are being considered at this time. We constantly study options for future contingency planning and utilize short-term production shift strategies when required to mitigate negative impacts on our business.

      As the second largest auto manufacturer in Canada by volume in 2024, approximately 69% of all Honda vehicles sold in Canada are built there, and 99% of vehicles sold in Canada are sourced from North American facilities. This long-standing flexible and local manufacturing approach allows us to quickly adapt to various market conditions across the region, including making coordinated production shifts to specific models built at each facility for different regions and potentially new markets, depending on customer demand. Canadian production will remain at full capacity thanks to domestic sales, which increased by 9% in the first quarter of this year, driven by the Canadian-built Honda Civic, Canada’s top-selling passenger car in 2024, as well as the Honda CR-V, the leading hybrid in the country this year.”