Honda vehicles parked at an automotive assembly plant in Alliston, Ont., on April 1.Carlos Osorio/Reuters
Honda Canada HMC-N pushed back against a report its plant in Ontario is set to move car production to the United States, saying no changes are planned for the Alliston, Ont., factory at this time.
The Nikkei newspaper reported on Tuesday that Honda is considering moving some production to the U.S. from Ontario and Mexico as the Japanese automaker aims for 90 per cent of cars sold in the U.S. to be made locally in response to new U.S. auto tariffs of 25 per cent.
Honda Canada spokesman Ken Chiu declined to comment on the details of the report, but said in an email, “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.”
Honda employs 4,200 people and makes the Civic and CR-V in the town northwest of Toronto. Annual production is 420,000 cars. Honda also makes the CR-V in Indiana and Ohio, and the Civic in Indiana.
U.S. President Donald Trump on levied 25-per-cent tariffs on the non-U.S. content of cars made in Canada and Mexico.
In the days since the tariffs were imposed, there have been two temporary auto plant shutdowns and thousands of layoffs in Ontario.
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Stellantis NV paused its production of minivans and Dodge Chargers in Windsor for two weeks ending on April 21. General Motors said its Chevrolet BrightDrop electric parcel van plant in Ingersoll will close on April 21 and mostly remain that way until October, when it will resume with 500 fewer workers.
Honda’s Mr. Chiu said the company is confident it can navigate the tariff turbulence but left open the possibility some production could shift.
“We constantly study options for future contingency planning and utilize short-term production shift strategies when required, to mitigate negative impacts on our business,” Mr. Chiu said.
Earlier on Tuesday, Innovation Minister Anita Anand and Ontario Premier Doug Ford called the Nikkei report inaccurate.
Honda is looking at increasing its capacity in the United States not moving the Alliston plant, Mr. Ford said, after speaking with the president of Honda Canada.
“They want to increase production down in the U.S. They’re at 100 per cent capacity right now,” Mr. Ford said.
Ms. Anand also said she talked to Honda and said there is no change planned to Canadian production.
“We are aware of the unconfirmed reports of future changes to Honda’s production plans for Canada,” Ms. Anand said on X.
“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,” she said.
Ontario’s Minister of Economic Development, Job Creation and Trade said he met with Honda a few weeks ago and will be travelling to Japan on Easter Sunday for a previously scheduled meeting with the company.
“We’re confident with all of the investments that we’ve made,” Vic Fedeli told reporters at Queen’s Park.
He reiterated Ontario’s desire for whomever forms the next federal government to join the province in guaranteeing the billions in subsidies offered to Honda and other automakers locating EV and battery plants in Canada.
“I think we’re safe all around, contractually with all these companies,” Mr. Fedeli added. “… Let’s just reassure them that this is the right place to be.”
The Honda Civic was Canada’s best-selling passenger car in 2024, according to DesRosiers Automotive Consultants. Sales of Honda and Acura, its upscale brand, totalled 136,000 in 2024. Sixty-nine per cent of Honda Canadian sales were built in the country, Honda says.
U.S. President Donald Trump says he might temporarily exempt the auto industry from tariffs he previously imposed, to give carmakers time to adjust their supply chains. The Republican president's statement hints at yet another round of reversals on tariffs.
The Associated Press
“I think to a large extent their production in Canada is, to a certain extent, driven by the domestic market here in Canada,” said David Adams, head of the industry group Global Automakers of Canada, which represents Honda, Toyota and several other overseas brands.
“My understanding is that they’re continuing to operate at full production here despite the tariff challenges.”
The U.S. was Honda’s biggest market last year, accounting for nearly 40 per cent of global sales. The automaker sold 1.4 million vehicles, including Acura models, in the U.S. last year. It imported about two-fifths of those cars from Canada or Mexico.
The Nikkei newspaper reported on Tuesday Honda is aiming for 90 per cent of cars sold in the U.S. to be made locally in response to new U.S. auto tariffs.
Japan’s second-biggest automaker by sales plans to increase U.S. vehicle production by as much as 30 per cent over two to three years in response to U.S. President Donald Trump’s decision to put a 25-per-cent levy on imported vehicles, Nikkei said.
In the weeks before the new U.S. levy went into effect, Reuters reported that Honda plans to make its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid tariffs.
With reports from Laura Stone and Reuters