Exclusive: Honda to produce next Civic in Indiana, not Mexico, due to US tariffs, sources say

[cadoman]

Source: Reuters

TOKYO, March 3 (Reuters) - Honda (7267.T), opens new tab has decided to produce its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs on one of its top-selling car models, 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% 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.

Japan's second-largest automaker had initially planned to manufacture the next-generation Civic in Guanajuato, Mexico, according to the three people. Production was slated to start from November 2027, according to one of the people.

Read more: https://www.reuters.com/business/autos-transportation/honda-produce-next-civic-indiana-not-mexico-due-us-tariffs-sources-say-2025-03-03/

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Probably a "leak" orchestrated by Mango Mussolini and some buddies. Expect to see more of these...

[Raftergirl]

1. Produced here, maybe, but practically everything that goes into the car is imported.

[JT45242]

2. Parts made in all three countries...this won't counteract the tariffs

Every time a part crosses a border, there will be a tariff.

Given that the parts are made in several countries, the final assembly piece will only counteract a small part of the overall tax increase.

Then of course the retaliatory tariffs on the final vehicles in Mexico, Canada, and Europe will be shall we say ..."YUUUGE"

Nice try Mango Mussolini...

[IronLionZion]

3. That's good, but many of the parts are imported and subject to tariffs

and people are going to be really surprised when they found how much of "American" brands like GM, Ford, Chrysler are made of imported parts. Many GM vehicles are completely assembled in China. Buick does this for example. Last time they protested Trump's tariffs and lost.

[twodogsbarking]

4. Seems like a decision that took a lot of time.

[CincyDem]

5. I agree with the parts issues but talk about jobs...and my guess is these lines aren't going to employ huge numbers.

Trump’s made a big splash blaming job losses on moving manufacturing to other countries…particularly Mexico.

But here’s the thing…those US workers were not all replaced by Mexican workers…many were replaced by microchips.

And the difference is this: You “might” get a job back from a Mexican worker, but you’ll never get a job back from a microchip.

[SpankMe]

6. Seema like this is for show

Boo to Honda. They're sucking up to the Orange Asshole ®.

In the end, I suspect it'll be a wash. There'd be increased pricing due to the import tariffs, or increased pricing due to higher labor and other costs of producing in the US (plus the tariffs on the imported components). I'd like to see a breakdown of how the final sticker price is affected by both scenarios.

Plus, it costs a billion dollars and more to build a new auto factory from scratch. They'll have to get that back somehow, like by increased price of the cars being produced there. I don't see how moving production here will keep the price down. If it does, then that's evidence that car companies have been price gouging us all along.

[nowforever]

9. Not to mention

Plants to manufacture the electronics and other parts and obtain raw materials to do all this. And of course workers will need training and a livable wage with benefits.

[Exp]

7. And it's going to COST a whole lot more, I bet! Americans wanting the cheapest prices all the time lead to

our trade deficits.

"Yeah, I'll take the cheap Chinese version, please." It was U.S. buyers' decisioins the entire time that lead to so much off-shoring.

[boyedav1969]

8. curious to see what this does to production costs

It seems like tariffs are still going to apply to at least some parts, depending on where they're sourced from, and I imagine the cost of labor will be higher here than in Mexico.

It seems like in many cases, domestic production means higher costs due to the higher wages of a workforce that now has less spending power...due to higher prices. Will things cost less than just paying the tariffs? Maybe, but maybe not? Will they cost less than before? Almost certainly not.

This just feels like a terrible gambit by Trump.

[cstanleytech]

10. Don't they generally make far more money off of the parts though?

[travelingthrulife]

11. According to three people, huh?

Anyone remember Foxconn in Wisconsin?

[MichMan]

12. Good news

The replies here baffle me.

Why would anyone be opposed to manufacturing being done in the US and hiring American workers? These jobs are decent paying and good for the economy.

[Jughead]

13. So?

They build it here? And when the economy crashes who buys them?

[Polybius]

14. Awesome

I know that Trump will take credit, but I don't care. The news is good for US workers.

[onenote]

15. The Hondas won't be built in Indiana until 2028 -- and it won't save US consumers money

That's because it will take time -- and money -- to upgrade the indiana production facilities. There would be costs in upgrading Honda's Mexican plant to build the next-gen Civics, but the labor and material costs almost certainly would be less. So, while there will be US jobs created in upgrading Honda's Indiana plant -- it will contribute to those cars costing more when they finally hit the market in three years. And in the meantime, the tariffs are going to make Hondas imported into this country over the next three years more expensive for US consumers.

[MichMan]

16. Most are already made in the US

Honda: Made in What Country?
Where are Honda Civics made? While you may watch a Honda Civic roll down Yorba Linda streets and assume it was made in Japan, the brand’s country of origin, you might be surprised to find that it was likely manufactured in the U.S. In 2016, Honda opened its 12th U.S. manufacturing plant—that makes for a lot of made-in-America Hondas! See a list of the eight Honda plants that make vehicles below (the other four manufacture parts):

Two Plants in Marysville, Ohio
East Liberty, Ohio
Lincoln, Alabama
Greensburg, Indiana
Timmonsville, South Carolina
Swepsonville, North Carolina
Greensboro, North Carolina

Honda Parts and Components
In addition to the vehicle manufacturing plants above, Honda also produces parts and components in North America. Honda parts are manufactured in:

Anna, Ohio
Russells Point, Ohio
Tallapoosa, Georgia
Burlington, North Carolina

Where are Honda CR-Vs Made?
Honda also continues to add on to its U.S. production by increasing the number of models their U.S. plants produce. One of the latest models to be added to the U.S. production roster is the fan-favorite Honda CR-V. This 2019 Honda CR-V compact SUV is now being produced in Greensburg, Indiana.

Honda Among Top American-Made Cars
Cars.com tracks the top 100 cars made in America with the site’s American-Made Index. Where does Honda rank? In the top 10! Several times, in fact. According to the 2018 American-Made Index, the Honda Odyssey was the second most “American-made” vehicle on the market. That’s not all, the Honda Pilot, made at a manufacturing facility in Lincoln, Alabama, came in at number six on the list. The 2019 model year looks like it will end up being even bigger for American-made Honda vehicles, with the Honda Ridgeline pickup truck and Honda Passport SUV rising to be among the top 10 American-made vehicles.

https://www.weircanyonhonda.com/honda-research/where-is-honda-made/