US auto manufacturer Honda will start producing its next-generation Civic hybrid in Indiana in May 2028 to avoid potential US tariffs on Mexican goods. This shift marks a change from the initial plan to manufacture the vehicle in Mexico, citing rising production costs in Indiana and Canada.
The decision comes as the Trump administration proposes a 25% tariff on goods from Mexico and Canada. Honda’s Chief Operating Officer Shinji Aoyama had warned of a need to shift production plans if permanent tariffs were imposed.
According to Reuters, around 210,000 units of the Civic hybrid are expected to be produced annually in Indiana. If demand falls short, Honda may consider importing from countries not affected by tariffs.
The decision highlights the impact of potential tariffs on manufacturing strategies as automakers navigate international trade and production costs. The move is also seen as a response to rising production costs in Indiana and Canada, making US production a more viable option for Honda’s Civic hybrid.
Source: https://www.wishtv.com/news/honda-civic-hybrid-indiana