Honda has scrapped production plans for its Civic Hybrid in Mexico, shifting production to an Indiana facility.
Japan’s second-largest automaker makes the shift with tariffs and trade wars in mind—President Donald Trump has imposed 25% tariffs on Mexican-made products. About 80% of Honda’s Mexican exports wind up in the United States, selling 1.4 million cars and trucks in the U.S. last year. Furthermore, about 40% of Honda’s U.S. sales are imported from Mexico and Canada. Honda may still face retaliatory tariffs as the automaker exports some 60,000 U.S.-made cars to Mexico and Canada.
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Mexico was originally chosen as a manufacturing hub for the Civic Hybrid as automotive production costs rose in Canada and Indiana. The new tariffs have drastically altered those plans both short and long term.
Production will be moved to Honda’s Greensburg facility, which currently produces the company’s CR-V models. Mexican production on the next-generation Civic was scheduled to begin in November 2027. Now, production has been pushed to start in May 2028.
The move is a win for the Trump administration. The president called out the automaker during his address to Congress last night. Trump hopes to see more continued growth in the U.S. auto industry.
Last year, more than 240,000 Civics were sold across the U.S. Both gas and hybrid models saw a drastic 21% rise in sales, making the Civic Honda’s second-best seller following the CR-V. Once production begins, the plant plans to make about 210,000 vehicles annually. If the facility is unable to meet that goal, Honda will look to import from nations that have not been hit by tariffs.
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Honda has scrapped production plans for its
Civic hybrid in Mexico,
00:03.470 --> 00:05.760
shifting production to an Indiana facility.
00:06.000 --> 00:10.670
Japan's second largest automaker makes the
shift with tariffs and trade wars in mind.
00:10.880 --> 00:15.800
President Donald Trump has imposed 25% tariffs
on Mexican-made products.
00:16.059 --> 00:20.389
About 80% of Honda's Mexican exports wind up in
the United States,
00:20.600 --> 00:24.549
selling 1.4 million cars and trucks in the US
last year.
00:24.889 --> 00:29.840
Furthermore, about 40% of Honda's US sales are
imported from Mexico and Canada.
00:29.969 --> 00:36.759
Honda may still face retaliatory tariffs as the
automaker exports some 60,000 US made cars to
00:36.759 --> 00:40.759
Mexico and Canada.
Mexico was originally chosen as a manufacturing
00:40.759 --> 00:46.069
hub for the Civic hybrid as automotive
production costs rose in Canada and Indiana.
00:46.240 --> 00:49.680
The new tariffs have drastically altered those
plans both short and long.
00:49.770 --> 00:53.389
Long term production will be moved to Honda's
Greensburg facility,
00:53.560 --> 00:56.240
which currently produces the company's CRV
models.
00:56.400 --> 01:01.479
Mexican production on the next generation Civic
was scheduled to begin in November 2027.
01:01.680 --> 01:05.800
Now production has been pushed to the start of
May 2028.
01:05.879 --> 01:08.430
The move is a win for the Trump administration.
01:08.680 --> 01:12.269
The president called out the move during his
address to Congress last night.
01:12.519 --> 01:16.110
Trump hopes to see more continued growth in.
The US auto industry.
01:16.360 --> 01:20.150
Last year, more than 240,000 Civics were sold
across the US.
01:20.360 --> 01:24.470
Both gas and hybrid models saw a drastic 21%
rise in sales,
01:24.680 --> 01:27.949
making the Civic Honda's second best seller
following the CRV.
01:28.160 --> 01:33.040
Once production begins, the plant plans to make
about 210,000 vehicles annually.
01:33.199 --> 01:37.879
If the facility is unable to meet that goal,
Honda will look to import from nations that
01:37.879 --> 01:39.669
have not been hit by tariffs.
01:40.000 --> 01:42.669
I'm Devon Verbsky, and this is manufacturing
now.
