Honda Blinks, Plans To Move Civic Production To Avoid Tariffs

Honda is adjusting its manufacturing strategy to navigate potential U.S. tariffs, shifting production of the next-generation Civic hybrid from Mexico to Indiana. Initially scheduled for a November 2027 production start in Guanajuato, Mexico, the new timeline pushes assembly in Indiana to May 2028, sources familiar with the matter told Reuters.

Honda's move is in response to U.S. President Donald Trump’s proposed 25% tariffs on Mexican and Canadian imports, which are expected to go into effect this week. Automakers across the industry are scrambling to protect their bottom line and ensure operations run smoothly. While other manufacturers have voiced concerns over the policy, Honda is the major automaker to blink and take action—although, keep in mind the plan has not officially been announced.

With an expected production volume of 210,000 Civics per year, Honda aims to meet U.S. demand domestically—Honda sent nearly 250,000 Civics to new homes across America in 2024. However, sources indicate the company may import vehicles from tariff-free markets if Indiana’s output falls short.

"Honda has made no such announcement and will not comment on this report," a Honda spokesperson told AutoGuide. "The Honda Civic has been made in our Indiana Auto Plant since the facility opened in 2008 based on our longstanding approach to build products close to the customer. We have the flexibility to produce products in each region based on customer needs and market conditions."

It's unclear what will happen to Honda's Canadian operation in Alliston, Ontario, where both the CR-V and Civic are built. In 2022, Honda invested $1.38 billion to upgrade the facilities as the North American lead plant for CR-V and Civic Hybrid production. It's likely Canadian domestic production will continue to roll off the line, but it's unclear if specialty models like the Civic Hybrid will continue to be imported to the U.S. or if that volume will also shift to a tariff-free location.

Become an AutoGuide insider. Get the latest from the automotive world first by subscribing to our newsletter here.