Honda to Move Production from Canada to U.S., Postpones $11-Billion Production Plan

Honda is one of Japan’s leading car manufacturers and one of the leading companies when the auto industry is concerned. Founded back in 1946, the company has been a pillar of the Japanese car industry for decades now.

But Honda is not just a Japanese brand – it is a global brand. Honda cars are driven around the world and shows just how popular they are.

And while Honda is going it’s best to stay afloat in a very volatile market, it seems that the various market pressures have influenced Honda’s decision to change some things going forward.

The Japanese company has some production lines and factories in North America, mainly Canada and the United States. But, while Canada was until recently the major location for Honda in North America, things are about to change.

Honda’s chief executive, Toshiro Mibe, revealed two important pieces of information. First, Honda is postponing its $11-billion investment plan to expand its Ontario factory complex for the production of electric vehicles and batteries. This was blamed on the sluggish trends in the EV market and it remains to be seen how this plan will evolve.

Just to remind you, this plan received substantial government benefits from Trudeau’s government and was called the single largest auto industry investment in the history of Canada and was supposed to add 1,000 new jobs.

The second decision is the one to move the production of one of Honda’s most popular model, the CR-V, from Canada to the United States. This is a direct result of the financial pressure put on the auto industry by Trump’s tariffs, so it seems that Trump is – at least partially – getting what he wants.

It remains to be seen how this will evolve in the future, but this is certainly an interesting turn of events.

Have something to add? Let us know in the comments below!