Honda moves Civic production plans to Indiana from Mexico to avoid Trump's tariffs: report

Core Viewpoint - Honda is shifting production of its next Civic model from Mexico to Indiana to avoid potential tariffs imposed by President Trump on imports from Mexico and Canada [1][2]. Group 1: Production Changes - Honda initially planned to manufacture the next-generation Civic in Guanajuato, Mexico, starting in November 2027, but will now produce it in Indiana beginning in May 2028, with an expected output of around 210,000 vehicles annually [1][3]. - The decision reflects a broader trend among automakers to reconsider manufacturing locations in response to tariff threats, with Honda being the latest company to pivot towards US manufacturing [2][5]. Group 2: Market Context - Approximately 80% of Honda's output from Mexico is currently exported to the United States, which is the second-largest auto market globally, following China [5]. - In the previous year, Honda sold nearly 1.5 million vehicles in the US, including over 240,000 Civics, marking a 21% increase from the prior year [5][6]. Group 3: Industry Reactions - Other automakers, such as Stellantis and Volkswagen, are also adjusting their production strategies in light of potential tariffs, with Stellantis reversing plans to close an Illinois facility and Volkswagen considering US production sites for its brands [3][9]. - Honda's chief operating officer had previously indicated that the company would need to consider moving production to the US if tariffs were imposed on vehicle imports [7].