Honda to shift Civic Hybrid production to U.S. from Japan

Canadian car dealership braces for tariffs

Honda Motor recently announced that it will be moving production of its Civic Hybrid hatchback from Japan to the United States. This decision comes in the midst of a series of tariffs imposed by the Trump administration, including a 25% tariff on imports from Canada and Mexico, as well as a 25% tariff on automobiles.

According to Chris Abbruzzese, a spokesperson for American Honda Motor Co., the Civic Hatchback Hybrid is currently being produced in both Japan and the Indiana Auto Plant. However, starting later this year, production will be consolidated to the Indiana facility. The specific reason for this shift in production location was not disclosed. Another spokesperson for Honda mentioned that the decision was not based on a single issue but rather on the company’s longstanding policy of producing cars where the demand is highest.

The Honda Civic Hybrid hatchback is a semi-electric version of the popular Honda Civic, which is one of the top-selling small cars in the United States. Over two-thirds of Honda and Acura models sold in the U.S. are already manufactured domestically. Despite this shift in production for the Civic Hatchback Hybrid, there are currently no plans to relocate production of the Honda Civic Hybrid sedan, which is currently manufactured in Canada, to the United States.

This move by Honda reflects the ongoing challenges and uncertainties faced by the automotive industry in the current trade environment. With tariffs and trade tensions affecting supply chains and production decisions, companies like Honda are making strategic moves to adapt to the changing landscape.

As the automotive industry continues to navigate the complexities of international trade policies, it remains to be seen how these decisions will impact consumers, workers, and the overall economy. The shifting production locations and the implications of tariffs on imported vehicles are key factors to monitor as the industry evolves.

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This article was written by Anne Marie D. Lee, an editor for CBS MoneyWatch. She covers a range of topics including personal finance, the workplace, travel, and social media.