Honda has issued a statement denying reports that it plans to move some of its vehicle production from its Alliston, Ontario plant to the United States due to U.S. President Donald Trump’s recently imposed tariffs.
“This was not an official announcement by Honda, and we cannot comment on the specifics of this morning’s headlines,” the company said. “However, we can confirm that our Canadian manufacturing facility in Alliston will continue to operate at full capacity for the foreseeable future, with no changes being considered at this time.”
Honda emphasized that it constantly evaluates future contingency options and may implement short-term production shifts to mitigate any negative impacts. Despite the rumors, the automaker reassured that its Canadian operations remain unaffected for now.
Earlier, a report from the Japanese news outlet Nikkei suggested that Honda might consider shifting production of the CR-V and Civic models from Canada to the U.S. in response to U.S. tariffs. The report claimed that the company was exploring the idea of manufacturing enough vehicles in the U.S. to meet 90% of its American sales.
Ontario Premier Doug Ford was quick to refute these claims. Federal Industry Minister Anita Anand also took to social media to stress that Honda executives had clarified that no decisions regarding changes to Canadian operations had been made or were being considered.
The controversy arose after the U.S. imposed a 25% tariff on all imported vehicles, including those made in Canada, despite the free trade agreement between the two countries. This new tariff significantly raises costs for automakers importing vehicles into the U.S.
According to Nikkei, Honda was planning to increase its U.S. production by 30% over the next couple of years, including hiring more workers and adding shifts to accommodate higher demand for CR-V and Civic models. However, Honda countered these claims by confirming that production at its Canadian plant would remain at full capacity. In fact, Honda noted a 9% increase in domestic sales for the first quarter of 2024, driven by strong sales of the Canadian-made Honda Civic (Canada’s best-selling car) and the Honda CR-V (Canada’s best-selling hybrid vehicle).
