- Honda has reportedly scrapped plans to shift Civic Hybrid production to Mexico.
- Instead, the car will be built in Indiana, though some imports may still be needed.
- Production was originally set for late 2027 but has now been pushed to 2028.
President Trump is set to hit products from Canada and Mexico with a 25% tariff starting on March 4, and it appears automakers are preparing for the brutal reality of a new global trade war. As part of this effort, there’s a focus on building vehicles in America to help keep prices down for consumers.
This is particularly important for mainstream models and Reuters is reporting that Honda has decided to build the next-generation Civic Hybrid in the United States. The model was reportedly slated to be made in Mexico, which would have already been a change since the current sedan is made in Alliston, Ontario while the hatchback is built in Greensburg, Indiana.
More: Trump’s Tariffs Could Hit 20% Of New Car Sales In The US
Citing three people familiar with the plan, the publication reported that Civic production was set to begin in Guanajuato, Mexico starting in November of 2027. The move was expected to help Honda avoid rising costs in the United States and Canada.
However, potential tariffs have thrown a wrench in those plans as the Civic has reportedly been pushed back to May of 2028 and will now be made in Indiana. Honda expects to build around 210,000 units annually at the plant, which could be a problem as the company sold 242,005 Civics in the United States last year. To cope with the expected shortfall, Honda may import some Civics made in countries not affected by tariffs.
Honda wouldn’t confirm or deny the report, but Reuters said around 40% of vehicles sold by Honda in America are imported from Canada or Mexico. This means the company faces a huge problem and consumers can likely expect significantly higher price tags.
