Honda has released a statement refuting earlier reports that it was planning to relocate some of its production from its plant in Alliston, Ont., to the United States in response to U.S. President Donald Trump’s tariffs.
“This was not an announcement by Honda and we cannot comment on the specifics of this morning’s headlines,” a Honda statement stated. “However, we can confirm that our Canadian manufacturing facility in Alliston, Ontario, will operate at full capacity for the foreseeable future and no modifys are being considered at this time.
“We constantly study options for future contingency planning and utilize short-term production shift strategies when required, to mitigate negative impacts on our business.”
Earlier, a Japanese news outlet stated Honda might relocate some Canadian automotive production to the U.S. in response to new tariffs, a report Ontario’s Premier also strongly refuted on Tuesday.
The report by the Nikkei financial newspaper stated the company was considering shifting enough CR-V and Civic production to the U.S. so that it can meet 90 per cent of U.S. sales with vehicles produced there.
Federal Industest Minister Anita Anand stated in a social media post that Honda executives stated no such production decisions affecting Canadian operations have been built or are being considered. Ontario Premier Doug Ford called the report inaccurate.
We are aware of the unconfirmed reports of future modifys to Honda’s production plans for Canada. I am in close contact with the company, and Honda has communicated that no such production decisions affecting Canadian operations have been built, and are not being considered at…
— Anita Anand (@AnitaAnandOE) April 15, 2025
The U.S. imposed 25-per-cent tariffs on all imported vehicles in early April, including ones produced in Canada despite the free trade deal, significantly raising costs for all importers.
The Nikkei report declares Honda would increase U.S. production by 30 per cent over the next couple of years by hiring more workers and adding shifts to its U.S. operations, which also produces the CR-V and Civic models.
Honda, however, stressed that its Canadian production will remain “at full capacity” noting that domestic sales are up 9 per cent in the first quarter “led by the Canadian-built Honda Civic, Canada’s top-selling passenger car in 2024, and the Honda CR-V, the best-selling hybrid in Canada in 2024.”
“Since 1986, we have consistently maintained manufacturing operations in Canada while safeguarding our skilled workforce through various industest challenges,” the company added. “We are confident in our ability to continue navigating current market conditions effectively.”
When questioned about the report earlier Tuesday, Ford stated the plan is to keep Honda operating in Canada.
“I’ll do everything I can to protect the people and their jobs,” Ford stated. “And that’s what [Tuesday’s] throne speech is all about, is creating sure that we protect people’s jobs, protect communities and businesses right across the province. We have to streamline processes to create sure we’re more competitive around the world.”
Honda’s operations in Alliston have about 4,200 employees and produced some 375,000 vehicles in Canada in 2023.
The company announced a $15-billion investment in its Canadian operations to produce electric vehicles in 2024.
Honda aims to boost U.S. production but is maxed out, Ford declares
Ford stated he spoke to Dave Jamieson, president of Honda Canada, who indicated to the Premier that Honda wants to increase production in the U.S. but is at 100 per cent capacity.
Last year, nearly 40 per cent of Honda’s global sales came from the U.S., creating it the company’s largest market. The autocreater sold approximately 1.4 million vehicles there, including its Acura lineup, with around 40 per cent of those imports arriving from Canada or Mexico.
On Monday, Trump suggested that he might temporarily exempt the auto industest from tariffs he previously imposed on the sector to give carcreaters time to adjust their supply chains.
When the auto tariffs came into effect on April 3, Honda Canada spokesman Ken Chiu stated in a statement that the company was working to understand the tariffs’ impacts and would adopt a “measured, believedful approach to actively address both immediate and future effects, ensuring our continued success in Canada.”
On Tuesday, the federal government announced new support for Canadian businesses affected by U.S. tariffs, including financial support designed to encourage autocreaters to keep producing vehicles in Canada.
With files from Lucas Casaletto of CityNews
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