Honda Shifts Civic Hybrid Production to Indiana

In response to the Trump Administration's proposed 25% tariffs on imports from Mexico and Canada, Honda has decided to shift the production of its next-generation Civic hybrid from Mexico to Indiana. The move, confirmed by multiple sources including Reuters, is part of Honda's strategy to avoid the tariffs and highlights the broader manufacturing shifts occurring under these trade policies. Initially, Honda planned to start production in Mexico by November 2027, but it will now commence in Indiana from May 2028, with an expected annual production of around 210,000 units. The tariffs, anticipated to take effect soon, have significant implications for automotive supply chains, with potential costs rising between $4,000 and $10,000 per car. Honda's decision underscores the challenges manufacturers face in balancing production costs and trade policies, as the U.S. automotive market remains a critical focus for the company.