Honda is reported Preparation to expand significantly That US manufacturing footprint in response to a new car rate sweep introduced by the Trump administration.
Japanese automakers are considering changing production of several important models from Mexico and Canada to the United States, with the aim of ensuring that 90% of cars sold in the state are built domestically, according to a report by the Nikkei newspaper.
Honda plans to increase production in the US by up to 30% over the next two to three years. Nikkei reported.
The move will be a direct response to President Donald Trump’s recent 25% tariffs on imported vehicles. This is a policy that has led to a backward trend in production planning across the entire automotive industry.
Nissan is reportedly cutting Japanese production of its top-selling US model, the Rogue SUV, over the next few months.
Honda, the second largest Japanese car manufacturer by sales, has long relied on the US as its most important market.
Last year, about two-fifths of cars imported from Canada and Mexico sold nearly 40% of the world’s total (nearly 40% of the world’s total).
In the first quarter alone this year, US sales rose 5% to nearly 352,000 vehicles.
To ease tariff costs and maintain competitive pricing, Honda is currently planning to move production of the CR-V SUV, popular to US facilities from Canada, and to move the HR-V SUV assembly from Mexico to American plants.
It also reportedly decided to manufacture the next generation of citizen hybrids in Indiana, not Mexico.
Nikkei’s report adds that Honda may hire more American workers to support these changes, adding that production operations could be expanded to include a three-shift schedule in weekend jobs.
Honda declined to comment on the report.
Honda’s expected re-shuffle is just one of several recent moves by major manufacturers trying to protect themselves from fallout in the Trump administration’s trade policy.
General Motors and Nissan said last week they will increase production at their US facilities.
GM said it will adjust its production approach by moving more assembly of lightweight trucks in demand at its Fort Wayne, Indiana plant.
Currently, GM manufactures Chevrolet Silverado and GMC Sierra pickups in plants in the US, Mexico and Canada.
In a similar move, Nissan announced that it will continue to continue two shifts at its Smyrna, Tennessee plant.
The company pointed out the need to strengthen domestic manufacturing in the face of new tariffs affecting vehicles shipped from Japan and Mexico.
Last month Hyundai New manufacturing facility opened Eravel, Georgia, plans to produce 500,000 electric vehicles a year, starting from the first 300,000 sheets.
Hyundai says it will spend $21 billion across its US operations by 2028, allocating $6 billion for investment in parts localization, logistics and domestic steel production.
Samsung Electronics and LG Electronics are reportedly weighing production shifts.
According to a Korean newspaper, Samsung is considering manufacturing mobile dryers from Mexico to South Carolina’s factory, but LG is evaluating similar movements in fridge production at its Tennessee facility.
In 2001, Generac Power Systems, an off-show to China, reversed the course by repatriating production of key elements to its Wisconsin plant. Create approximately 80 jobs.
This reflects a wider re-added trend that has been entrenched throughout the US manufacturing industry, indicating analysts are increasing concerns about quality control and supply chain disruptions due to rising labor and transportation costs in China.
Other companies Following the trend of repurchase Includes General Electric, Caterpillar, Toyota, Siemens and Baltimore-based Zentech Manufacturing. All of these have recently expanded or launched new domestic businesses, particularly in the southeastern region where labor costs are relatively low.
