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Japanese automaker Honda will move production of one of its hybrid vehicles to Indiana in response to the Trump administration’s proposed tariffs affecting goods from Mexico, according to reports.
The next-generation Civic hybrid was set to be produced in Guanajuato, Mexico, in 2027, according to a Monday report by Reuters, but production will now be based in Indiana beginning in 2028. Annual production is expected to hit 210,000, the report says.
The report didn’t specify where in Indiana the vehicle would be produced, but the company’s only facility in the state is the Indiana Auto Plant in Greensburg, about an hour southeast of Indianapolis.
A company spokesperson told IBJ in a written statement that “Honda has made no such announcement and will not comment on this report.”
The statement continued: “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.”
Speaking at a Monday news conference, Indiana Gov. Mike Braun did not confirm the reports, but said this kind of development would be the type he wants to see.
“The companies that have come here—my main goal is to make sure they stay here when they’re wanting to add employment, make a big investment,” he said.
President Donald Trump’s 25% tariffs on Mexico and Canada—the country’s largest trade partners—are expected to go into effect Tuesday after a monthlong suspension. In 2023, the U.S. imported $69 billion worth of cars and light trucks from Mexico—more than any other country—and $37 billion from Canada. Another $78 billion in auto parts came from Mexico and $20 billion from Canada.
This isn’t the first time the Indiana facility has spearheaded U.S. production of Honda’s vehicles. In 2021, the Indiana Auto Plant was the first U.S. Honda plant to produce the Civic Hatchback, according to a news release. It was also the company’s first U.S. plant to build the Acura ILX (2012), Honda Insight (2019) and CR-V Hybrid (2020).
The 1.3 million-square-foot plant in Greensburg, which opened in 2008, employs 2,700 workers. Honda makes its Civic Hatchback, CR-V and Insight Hybrid there.
Last month, Honda reported a 7% decline in profit for the nine months ending in December, but sales gains of 9% over the same period, with demand remaining solid in the U.S. The company had been in talks with competitors Nissan and Mitsubishi Motors Corp. to create a joint holding company, but those negotiations ended early this year.
IBJ’s Cate Charron and Inside INdiana Business reporter Marek Mazurek contributed.
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Greensburg is not southwest of Indianapolis, oy vey
The article notes “southeast”
My vote is working.
You voted for the DOW to fall around 850 points today?