Honda Civic will be made in the US – thanks to Trump Tariffs star-news.press/wp

Honda motor Co. (HMC+ 1,26%) It will make its civic hybrid of the next generation in Indiana, not Mexico, for Dodge Dodge to plan American tariffs on foreign imports.

Reuters, referring to three people familiar with that, Reports If Honda planned to do the citizensk in Guanajuato, Mexico. Honda in 2014. opened a plant in Guanajuato, which can produce 200,000 units each yearAccording to the company.

The new civic was set up in Mexico starting in November 2027. years, due to growing costs in Indiana and Canada, where there are plants, one of the people told Reuters. Now, Japanese second largest car manufacturer wants to build a new citizensk in Indiana, where currently makes a civic sedan, CR-V SUV and an insight hybrid limousine.

The company plans to perform about 210,000 citizens each year, although Honda would seem to import from countries that are not affected by tariffs if production did not meet demand. Honda Chief Operating Director Shinji Aoyama has warned that the car manufacturer may consider moving production if the US is conducting permanent ravaged vehicles.

Honda refused to comment on the report, noticing that he did not announce any changes in civil production and that the model was made in Indiana since 2008. years.

“We have flexibility to produce products in each region based on customer needs and market conditions,” the car manufacturer has added.

The US is expected to spend new 25% of duty on imported goods from Canada and Mexico early on Tuesday, which will affect almost all the main car manufacturers. Company supply chains such as Ford Motor Co. (F+ 1.52%) and stellantis (Stress+ 1.42%) rely heavily on both nations.

The Michigan-based economic group assesses that the tariff for 25% added between 4,000 and 10,000 dollars per car to a vehicle in North America. Aluminum and steel duties add another $ 250 to $ 800 per gas vehicle and up to $ 2,500 on EVS, the group said.

During the 13th February at a call with analysts, Aoyama said 25% of tariffs would have $ 20 billion plus influence, “towards a Transcript. He noted that Honda would transfer some production from Mexico and Canada to the United States before the implementation of the tariffs to avoid some impact.

“I don’t think it’s very difficult to deal with that Tariff situation for those two materials,” said Aoyama about aluminum and steel duties. Duties on Canada and Mexico, however, could create a “difficult situation” for Honda if they remain intact for more years.

Honda also has facilities in Ohio, Georgia and Alabama. The company has invested $ 1 billion to build electric vehicles on the new EV node in Ohio. Separately, it is dedicated to investing $ 3.5 billion in the battery facility in Ohio.