Honda Moves Next Civic Production from Mexico to US

5 months ago 28

Reuters News Agency is reporting that Honda has decided to produce its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico.

This, to avoid potential tariffs on one of its top-selling car models.

That’s according to three people familiar with the matter.

The change underscores how manufacturers are scrambling to adapt to U.S. President Donald Trump’s proposed 25 percent tariffs on goods from Mexico and Canada.

While several automakers have expressed concerns about the levies, Honda’s move is the first concrete measure by a major Japanese car company.

According to the three people, Japan’s second-largest automaker had initially planned to manufacture the next-generation Civic in Guanajuato, Mexico.

According to one of the people, production was slated to start from November 2027.

One of them said Mexico was chosen because rising costs were making it tough to produce the car in Indiana and Canada.

But they say the company now plans to build the new Civic model in Indiana from May 2028 with an expected annual production of around 2-hundred and 10-thousand.

One of them said if production in Indiana falls short of demand, Honda would look to import from nations not hit by tariffs.

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