Honda Motor‘s Canadian unit has denied a report by Japanese business daily Nikkei that the automaker plans to relocate production from its Canadian plants to the United States in response to tariff pressures.
Nikkei reported on Tuesday that Honda was working on plans to shift production from Mexico and Canada to the United States after President Donald Trump’s administration imposed an additional 25% tariff on imported automobiles.
“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,” Honda Canada said in a statement on Tuesday.
The Nikkei report had claimed Honda would increase US production by up to 30% over two to three years to meet 90% of its US sales with locally-produced vehicles, up from the current 70%.
Honda imports approximately 500,000 vehicles into the United States annually, including 300,000 from Canada. The CR-V SUV and Civic sedan, manufactured in Canada, were specifically mentioned as models that might be relocated to US facilities.
The tariff situation created significant concern in Alliston, Ontario, where Honda’s assembly plant employs 4,200 workers and produces about 400,000 vehicles annually.
According to Flavio Volpe, head of Canada’s Automotive Parts Manufacturers’ Association, Honda has a history of maintaining its Canadian workforce during economic downturns.
“Honda has never in any of these crises pulled back or laid off any workers,” Volpe told the Toronto Star.
The Trump administration’s tariff policy has prompted several automakers to reconsider their North American production strategies. Canada has responded with retaliatory tariffs on US vehicle imports.
Information for this story was found via Toronto Star, Nikkei Asia, Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
