Honda Canada says it’s keeping full production at its Alliston, Ont., plant “for the foreseeable future” in the wake of a Japanese report that it was considering shifting production to the U.S. to avoid auto tariffs.
“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,” the company said Tuesday afternoon. “We constantly study options for future contingency planning and utilize short-term production shift strategies when required, to mitigate negative impacts on our business.”
A Japanese newspaper said the company is considering moving some of its auto production to the U.S. from Mexico and Canada — including its 4,200 person plant in Alliston — to avoid tariffs imposed by U.S. President Donald Trump.
Nikkei first reported Tuesday that Honda is considering the shift as it aims to produce 90 per cent of its cars sold in the U.S. locally to avoid Trump’s 25 per cent penalties on auto imports.
At Queen’s Park, Premier Doug Ford disputed reports suggesting Honda Canada’s sprawling factory in Alliston could be affected by the company bringing more production the U.S. Ford said he “just got off the phone with the president of Honda Canada and they’re sending a statement out clarifying what Reuters said.”
“It’s not accurate at all. They want to increase production down in the U.S.,” the premier said.
“They’re at 100 per cent capacity right now (stateside),” he said Tuesday. “We’re going to keep Honda here and I’ll do everything I can to protect the people and their jobs.”
Federal Industry Minister Anita Anand disputed the report in a social media post.
“I am in close contact with the company, and Honda has communicated that no such production decisions affecting Canadian operations have been made, and are not being considered at this time.”
The head of Canada’s Automotive Parts Manufacturers’ Association said Honda likely wouldn’t need to lay off workers, even if it shifted production of its CRV from Alliston to the U.S., as Nikkei suggested.
“They could move the CRV and still be committed to the Civic,” said APMA CEO Flavio Volpe, estimating that the Alliston plant produces 400,000 vehicles per year. “They’ve got the Civic there in Alliston, too, and that’s been the No. 1 selling car in Canada for 40 years.”
And, said Volpe, Honda has a long history of keeping its workers around, even during the 2008 financial crisis or other market downturns.
“Honda has never in any of these crises pulled back or laid off any workers,” said Volpe, who also suggested that Honda and Toyota have stronger financial foundations than their North American counterparts.
“They’re probably best positioned to ride out the storm,” Volpe said.
The president of Global Automakers of Canada (GAC), which represents Honda, also said he didn’t expect layoffs.
“They’ve never laid off a worker in Canada. I don’t see that changing,” said GAC president David Adams.
The news comes as Honda Manufacturing of Canada says it’s continuing to work on a massive expansion of its Canadian operations that includes two new plants dedicated to electric vehicle and battery manufacturing at its Alliston site. The $15-billion project — which has the support of the federal and Ontario governments — is expected to create at least 1,000 new jobs.
The Nikkei report also comes as Japan’s chief trade negotiator is set to visit the U.S. this week for talks aimed at convincing to remove tariff measures against the country.
Economic Revitalization Minister Ryosei Akazawa will be in Washington from Wednesday to Friday for talks with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, according to Japanese Chief Cabinet Secretary Yoshimasa Hayashi.
With files from Robert Benzie, Metroland staff and Star wire services.
