Honda Canada Denies Considering Moving Some Production to U.S.

UPDATE: The following statement was released by Honda Canada on Tuesday afternoon. "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. [...] Canadian production will remain at full capacity thanks to domestic sales, which are up 9% in the first quarter of this year." The original story can be found below.

A new report from Japanese business daily Nikkei claims Honda is mulling transferring part of its Canadian and Mexican production to the U.S. in response to the new American tariffs on foreign-made vehicles and parts that went into effect earlier this month.

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The manufacturer plans to increase automobile production in the U.S. by up to 30 percent over the next three years so that 90 percent of its vehicles sold in the country will be made locally.

Honda has declined to comment, saying the information was not announced by the company.

The U.S. is Honda’s largest market, accounting for nearly 40 percent of global sales. The automaker sold 1.4 million vehicles there last year. Roughly two out of five were built in Canada or Mexico.

According to Nikkei, Honda’s plan would involve moving production of the CR-V out of Ontario and production of the HR-V out of Mexico.

Back on April 3, Honda Canada assured it was working with its manufacturing, parts, trade and logistics providers across North America to understand the impact of the announced U.S. tariffs. “We will adopt a measured, thoughtful approach to actively address both immediate and future effects. We are confident in our ability to navigate current market conditions,” it said.

Around 4,200 people work at Honda plants in Alliston, Ontario, building CR-V and Civic models.