Honda (NYSE: HMC) has confirmed that it has no plans to move car production from Canada and Mexico to the United States, dismissing earlier reports that suggested such a move might occur to sidestep potentially severe U.S. tariffs.

Key Points

No Production Shift in Sight:

In statements from both Honda Canada and Honda Mexico, the automaker declared, “No changes are being considered at this time.”

Honda Canada emphasized that current operations remain unchanged, while Honda Mexico echoed that no production decisions affecting its facilities in Mexico are under consideration.

Context Behind the Rumors:

Reports from Nikkei suggested that Honda was exploring options to relocate some production to the U.S. to ensure that 90% of cars sold domestically are manufactured in America—a response to new U.S. auto tariffs.

Despite these reports, Honda’s official statements confirmed its commitment to maintaining existing production in Canada and Mexico.

Response to U.S. Tariff Environment:

The automaker is monitoring the evolving U.S. tariff landscape, notably President Trump’s imposition of a 25% levy on imported vehicles.

Honda continues to study future contingency plans and employ short-term production shift strategies if necessary, while remaining confident in its ability to navigate current market conditions effectively.

Regional Operations:

Honda Canada operates a plant in Alliston, Ontario, and is a major domestic player.

In Mexico, Honda continues production at facilities in Guanajuato and Jalisco, with no adjustments anticipated despite trade pressures.

Additionally, prior reports indicated that Honda planned to produce its next-generation Civic hybrid in Indiana to potentially avoid tariffs, although production plans there remain separate from its core operations in Canada and Mexico.

Looking Ahead
While Honda reassures investors that no immediate production shifts are planned, the automaker remains vigilant. The company is continuously reviewing market conditions as it navigates the challenges posed by U.S. tariff policies and global economic uncertainties.
For further details about Honda’s financial outlook and strategic positioning, investors can refer to the? Annual Reports Form 10-K API from Financial Modeling Prep, which provides comprehensive insights from the company’s official filings.