Honda Motor Company is planning to relocate vehicle production from Mexico and Canada to the United States, aiming to manufacture 90% of its US sold vehicles in the US, according to a report by the Nikkei newspaper.
The Japanese automaker's strategy comes in direct response to President Donald Trump's recently implemented 25% tariff on imported vehicles.
The company intends to boost its US manufacturing capacity by approximately 30% over the next two to three years.
While Honda has declined to confirm these specific plans, stating that "the information was not announced by the company," previous reports had already said Honda would move production of its next-generation Civic hybrid from Mexico to Indiana to avoid potential tariffs.
The US represents Honda's largest market, with nearly 40% of its global sales.
Last year, the company sold 1.4 million vehicles in America, including its premium Acura models.
About two-fifths of these vehicles were imported from Canadian or Mexican plants.
According to Nikkei, Honda will shift production of the popular CR-V sport utility vehicle from Canada to US facilities, while also relocating the HR-V SUV manufacturing from Mexico.
To accommodate this production increase, the company is considering hiring additional American workers.
This expansion could enable Honda to move to a three-shift system, replacing its current two-shift schedule, and extend manufacturing operations to weekends.
Honda's US sales rose five percent to nearly 352,000 vehicles during the first quarter of this year, showing continued strong demand in the American market despite economic uncertainties.
