From Financial Modeling Prep: 2025-04-15 06:18:00

Honda is considering shifting vehicle production to the U.S. in response to new tariffs. The goal is 90% local production, with a 30% increase in U.S. output over 2-3 years. This move is in response to President Trump’s auto tariffs, with the next-gen Civic Hybrid to be built in Indiana.

The potential shift aligns with a trend among automakers to avoid tariffs, strengthen supply chains, support “Made in America,” and tap into U.S. demand for hybrids and EVs. Localizing manufacturing helps Honda preserve margins and competitiveness without passing costs to consumers.

The industry-wide implications suggest other automakers may follow suit to mitigate tariff exposure and streamline supply chains. With the U.S. taking a firmer stance on trade, expect increased domestic auto investments, particularly in EVs and hybrids.

Honda’s production pivot could benefit both the company and the U.S. economy. As tariffs reshape the auto industry, localized production could be crucial for maintaining market share and efficiency. Expect other global automakers to consider similar strategies to avoid falling behind in the evolving landscape.



Read more at Financial Modeling Prep:: Honda Eyes 90% Local Production Amid New U.S. Auto…