A Japanese news outlet says Honda might move some Canadian automotive production to the U.S. in response to new tariffs.
The report by the Nikkei financial newspaper says the company is considering shifting enough CR-V and Civic production to the U.S. so that it can meet 90 per cent of U.S. sales with vehicles produced there.
The U.S. imposed 25 per cent tariffs on all imported vehicles in early April, including ones produced in Canada despite the free trade deal, significantly raising costs for all importers.
The Nikkei report says Honda would look to increase U.S. production by 30 per cent over the next couple of years by hiring more workers and adding shifts to its U.S. operations that also produce the CR-V and Civic models.
Honda’s operations in Alliston, Ont., has about 4,200 employees and produced some 375,000 vehicles in Canada in 2023.
The company, which last year announced a $15-billion investment in its Canadian operations to produce electric vehicles, didn’t immediately respond to a request for comment.
