Honda will produce Civic in Indiana, not Mexico, to skirt tariffs, report says
A report out Monday said that Honda is moving production of its next generation Honda Civic hybrid to Indiana as President Donald Trump plows ahead with plans to enact economic tariffs on Canada and Mexico.
Reuters reported the Japanese automaker had originally planned to manufacture the model in Guanajuato, Mexico, but would now move operations to Indiana to skirt tariffs on one of its most popular car models. The news agency cited several anonymous sources with knowledge of the matter.
A Honda spokesperson Monday said in an email, "Honda has made no such announcement and will not comment on this report."
Gov. Mike Braun did not confirm or deny the Honda reports but said Monday he would be open to such investment in Indiana.
"I'm not going to confirm that, because I want to make sure it's out there at the time when they're wanting to make it official," Braun said Monday while speaking to reporters. "But that's going to be something that I'm going to always accommodate."
The Reuters report said Honda would begin production in 2028 with an annual output of 210,000 vehicles but did not mention where the manufacturing plant would be located in the state. Currently, Honda operates one production plant in Greensburg, Indiana.
"The Honda Civic has been made in our Indiana Auto Plant since the facility opened in 2008 based on our longstanding approach to build products close to the customer. We have the flexibility to produce products in each region based on customer needs and market conditions," the Honda spokesperson said in a statement.
The news came on the eve of 25% tariffs Trump plans to enact on goods from Mexico and Canada to curb the flow of illegal immigration and drugs into the United States. Trump previously said he would impose tariffs in early February but pushed the measure back a month until March 4 after conversations with Mexican President Claudia Sheinbaum.
On Monday, though, Trump told reporters there was "No room left for Mexico or Canada," after announcing a $100 billion investment in Arizona from a Taiwan semiconductor company. “The tariffs — they are all set. They’re going into effect tomorrow.”
An additional 10% tariff on goods from China is also expected to start Tuesday.
Economists have warned that tariffs could ultimately be passed down to the consumer.
The Honda report underscores the uncertainty the world's largest manufacturers face as they weigh the long-term effects of economic measures with the whirlwind of Trump's presidency so far. The report also details the logistical challenges of quickly moving large-scale production lines to adapt to proposed tariffs.
Alysa Guffey covers business and development for IndyStar. Contact her at amguffey@gannett.com.
Contact IndyStar state government and politics reporter Kayla Dwyer at kdwyer@indystar.com or follow her on X @kayla_dwyer17.