In March, Honda became one of the first tariff dominos to fall when the company scrapped plans to make the Civic Hybrid in Mexico and moved production to Indiana. Now, according to Reuters, the automaker is looking to increase U.S. production by some 30% over the next two-to-three years.
As a direct response to President Donald Trump's auto tariffs, which would add a 25% tax to all imported vehicles, Honda wants 90% of all cars sold in the U.S. to be made in the U.S. The news was first reported this morning by Nikkei.
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America is a big market for the automaker, accounting for some 40% of global sales. Honda reported more than 1.4 million in combined Honda and Acura U.S. sales in 2024, an 8.8% year-over-year increase. It imported about 40% of those cars from Canada or Mexico, according to Reuters.
Honda brand sales reached nearly 1.3 million units in the U.S., beating sales targets and up 11.1% from the previous year. The company experienced its best sales on record for the CR-V, HR-V and electric models, and the compact Civic, Pilot SUV and Odyssey minivan each topped their specific segments.
Honda has big plans to launch new products this year, including the reintroduction of the Prelude as a hybrid-electric sport coupe in late 2025. Last month, Honda launched the Acura ADX, a premium compact SUV it plans to use to attract young buyers.
According to Nikkei, increasing U.S. production could force Honda to add new jobs and switch to a three-shift system. The company could also add weekend shifts to meet demand.
IEN reached out to Honda, but the company has not yet responded to our request for comment.
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