Honda Canada confirms it has no plans to reduce its automobile production in the country

Despite U.S. tariffs, Honda Canada says it has no plans to relocate its Canadian production for the “foreseeable future.”

The announcement comes after Japanese financial newspaper Nikkei reported that the big automaker was considering shifting some Canadian automotive production to the United States.

The report stated that Honda wants to increase its current level of sales of vehicles produced in the country from 70 per cent to 90 per cent by moving more Canadian CR-V and Civic manufacturing to the U.S.

The news outlet mentioned that Honda would aim to increase U.S. production by 30 per cent over the next few years by hiring more workers in its U.S. factories that produce the CR-V and Civic models.

The dire scenario would have meant trouble for the future of Honda’s plant in Alliston, Ont., but tonight, there’s a big sigh of relief there.

Richard Norcross, the mayor of New Tecumseth, says he had no doubts about a future without Honda in Alliston, Ont., following the news report.

“Honda is the greatest community partner we’ve ever had…never in my mind would I think they wouldn’t protect those 4,000 workers,” Norcross says.

“What my source said to me is…look…the American tariffs, we don’t understand them, nobody really understands them. [Honda] is trying to figure out the situation. We’re all going to have to work around them and figure out what’s going on.”

A spokesperson for Honda Canada refuted the report, saying it did not come from them and “we can confirm that our Canadian manufacturing facility in Alliston, Ont., will operate at full capacity for the foreseeable future and no changes are being considered at this time.”

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Canadian officials also swatted down the news, adding that they spoke with the company.

“I think Honda was very clear in their statement, as they do say ‘for the foreseeable future.’ We met with them a few weeks ago and are very satisfied with their arrangement here,” says Ontario Trade Minister Vic Fedeli.

Fedeli also confirmed Tuesday that he has a previously-scheduled meeting with Honda officials this weekend and will be flying to Japan to discuss how they can help build its supplier base in Ontario.

“We’re going to keep Honda here,” Ontario Premier Doug Ford says, “and I’m going to do everything I can to protect the people and their jobs.”

Around 4,200 people are employed at the plant in Alliston, Ont., and Honda says its future plans there are still a go.

Last year, Honda announced a $15-billion commitment in Alliston, Ont., aimed at creating an electric vehicle supply chain and battery plant next to its existing facility.

U.S. President Donald Trump’s 25 per cent tariffs on imported autos haven’t changed but the White House confirmed Tuesday that Trump remains flexible when it comes to imported auto parts, which also have levies starting May 3.

“I’m looking at something to help the car companies a little bit, switching to parts that were made in Canada, Mexico or wherever,” Trump says.

Global Automakers of Canada believes that despite the current auto tariffs, such major production changes would not happen abruptly.

“I do think it’s reasonable that all automakers in this world of tariffs and retaliatory tariffs are undertaking contingency planning, looking at all possible options,” says David Adams, president and CEO of the auto association.

“I understand the president wants to repatriate auto manufacturing to the U.S., but he also has to realize that the North American auto sector is set up the way it is for a reason.”

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