Honda Halts Civic Hybrid Production in Mexico Over Tariff Concerns

A recent study suggests that Honda's manufacturing plans are altering as it seeks to avoid upcoming levies on the extremely popular Civic and Civic Hybrid models.

Honda has apparently abandoned plans to move manufacture of the next-generation Civic Hybrid to Mexico.

The Civic, along with the CR-V, will be constructed in Greensburg, Indiana, rather than Guanajuato, Mexico.

The shift in plans comes the day before the Trump administration imposes 25 percent tariffs on Canada and Mexico.

A recent Reuters story highlights a change in Honda's production plans, with the carmaker abandoning previous intentions to relocate Honda Civic Hybrid production to Mexico.  According to a Reuters report published on the eve of the Trump administration's 25% tariffs on Canada and Mexico, Honda will construct the next-generation Civic in its Greensburg, Indiana, plant.

Aside from the Civic Type R, which is constructed in Japan, Honda presently divides production for North American Civics and CR-Vs between its facilities in Indiana and Ontario, Canada.  Reuters claims three unidentified insiders who confirmed Honda's early plans to relocate Civic production to Guanajuato, Mexico.  The new location was chosen due to increased prices in Indiana and Canada.

According to the reports, manufacturing at the Mexico site was expected to begin in November 2027.  According to the updated plans, production will start in May 2028, six months later than previously planned.  According to the same anonymous sources, Honda expects to produce roughly 210,000 cars each year, with plans to import from non-tariff countries if production targets are not met.

Civic sales increased by 21% last year, putting it tenth on the list of the best-selling vehicles in the United States and totaling slightly over 242,000 units sold annually.  While around 40% of Honda's annual U.S. sales are imported from Canada and Mexico, the business also exports roughly 60,000 U.S.-made automobiles to those nations, so any retaliatory tariffs would further hurt the automaker.

In reaction to the Reuters piece, a Honda spokesman provided Car & Driver with the following statement.

"Honda has made no such declaration and will not respond to this report.  The Honda Civic has been manufactured in our Indiana Auto Plant since it debuted in 2008 as part of our long-standing commitment to building products close to the consumer.  We can develop items in different regions based on customer demand and market conditions."