Honda rejects report of Canadian manufacturing exit

Investing.com -- Honda (NYSE:HMC) Canada denied media reports Tuesday that it plans to shift auto production out of Ontario in response to trade developments. “No changes are being considered at this time,” the company said in a statement.

The clarification follows a Nikkei report suggesting Honda is preparing to relocate vehicle assembly from Canada and Mexico to the U.S. to mitigate the potential impact of new U.S. tariffs. The report said the automaker is targeting 90% local production for U.S. sales within two to three years.

Honda emphasized that its Canadian manufacturing plant in Alliston remains fully operational and central to its North American strategy. “Our Canadian manufacturing facility… will operate at full capacity for the foreseeable future,” the company stated.

Approximately 69% of Honda vehicles sold in Canada are assembled domestically, with 99% sourced regionally across North America. Strong sales of Canadian-built models like the Civic and CR-V helped drive a 9% rise in domestic sales in the first quarter of 2025.

Ontario Premier Doug Ford and a spokesperson for Industry Minister Anita Anand also pushed back against the Nikkei report, calling its claims inaccurate. A government source told CBC News that the $15 billion Honda-Canada EV supply chain agreement remains intact.

Honda acknowledged it frequently evaluates short-term production shifts to meet market demand but said those adjustments do not signal a departure from Canadian manufacturing. Its flexible regional strategy allows for redistribution of model production across facilities as needed.

Since 1986, Honda has maintained continuous manufacturing operations in Canada. “We are confident in our ability to continue navigating current market conditions effectively,” the company stated.