Trump Secures Victory as Honda Moves Civic Hybrid Production to the US | Carscoops

      The current production of the Civic Hybrid at the Japanese plant will cease by the end of July.

      Honda has confirmed that the Civic Hybrid's production will relocate from Japan to Indiana this summer.

      Around 70 percent of the vehicles sold by Honda in the US are manufactured domestically.

      Trump’s threats of a 25 percent tariff are encouraging automakers to move production back to the US.

      Honda has revealed its plan to transfer the manufacturing of one of its significant models from Japan to the US, a strategic move aimed at avoiding the 25% tariffs on imported vehicles proposed by President Trump. Although this aligns with recent speculations, the company has not yet corroborated claims that up to 90% of its vehicles for the US market could soon be produced domestically.

      A representative from Honda confirmed that the five-door Civic Hybrid will no longer be made at the Yorii plant in Japan. Instead, production will shift to Honda's factory in Indiana. The Japanese facility is anticipated to stop Civic Hybrid production by the end of June or July, though Honda has not specified when production will commence at the Indiana plant.

      Reports from Reuters provide limited details, but President Trump is likely to use Honda’s decision as proof that his aggressive and somewhat chaotic tariff policy is effective. The administration argues that high tariffs on imported vehicles will compel automakers to produce more vehicles in the US. While some companies are adjusting their strategies, others may choose not to, and ultimately, the financial burden of these tariffs is expected to be passed on to consumers.

      Honda's Indiana factory currently employs around 2,700 individuals and is responsible for producing the Civic hatchback and CR-V. It also plans to move Accord production from a facility in Marysville, Ohio, to the Indiana site, although it remains unclear whether relocating Civic Hybrid production from Japan will affect these plans.

      Previous reports indicated that Honda might transfer up to 90% of its vehicle production intended for the US to American plants in the coming years. This could potentially include relocating Civic sedan and CR-V production from Canada and moving HR-V production from Mexico to the US. While Honda Canada has refrained from commenting on changes to US production, it has stated that its facilities are expected to continue operating at full capacity in the near future.

      The US market is crucial for Honda, accounting for 40% of its global sales. Fortunately, about 70% of the vehicles it sells in the US are already produced locally.