Honda Reportedly Looks To Drastically Ramp Up U.S. Manufacturing

Editor's Note: This article has been updated with comments from American Honda Motor Company.

In March, Honda became one of the first tariff dominos to fall when the company scrapped plans to make the Civic Hybrid in Mexico and moved production to Indiana. Now, according to Reuters, the automaker is looking to increase U.S. production by some 30% over the next two-to-three years.

As a direct response to President Donald Trump's auto tariffs, which would add a 25% tax to all imported vehicles, Honda wants 90% of all cars sold in the U.S. to be made in the U.S. The news was first reported this morning by Nikkei.

Honda denies the claims made in the reports. 

"Honda has made no such announcement," says Chris Abbruzzese, corporate communications at American Honda Motor Co in a statement to IEN. "Honda will continue to consider the optimal global production system and allocation, taking into account customer needs and market conditions based on our longstanding approach of 'building products close to the customer."

Honda has been producing automobiles in America for more than 40 years. "In 2024, nearly two-thirds (65%) of Honda and Acura vehicles sold in the U.S. were built here, with 99% built in North America," Abbruzzese adds. "Cumulatively, Honda has invested over $25 billion in its U.S. operations."

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America is a big market for the automaker, accounting for some 40% of global sales. Honda reported more than 1.4 million in combined Honda and Acura U.S. sales in 2024, an 8.8% year-over-year increase. It imported about 40% of those cars from Canada or Mexico, according to Reuters.

Honda brand sales reached nearly 1.3 million units in the U.S., beating sales targets and up 11.1% from the previous year. The company experienced its best sales on record for the CR-V, HR-V and electric models, and the compact Civic, Pilot SUV and Odyssey minivan each topped their specific segments. 

Honda has big plans to launch new products this year, including the reintroduction of the Prelude as a hybrid-electric sport coupe in late 2025. Last month, Honda launched the Acura ADX, a premium compact SUV it plans to use to attract young buyers.

According to Nikkei, increasing U.S. production could force Honda to add new jobs and switch to a three-shift system. The company could also add weekend shifts to meet demand.

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WEBVTTX-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:000:00.200 --> 00:04.639Honda became one of the first tariff dominoesto fall in March when the company scrapped00:04.639 --> 00:09.430plans to make the Civic hybrid in Mexico andmoved production to Indiana.00:09.680 --> 00:15.920Now, according to Reuters, the automaker islooking to increase US production by some 30%00:15.920 --> 00:21.719over the next 2 to 3 years as a direct responseto President Donald Trump's auto tariffs.00:21.850 --> 00:25.180Which would add a 25% tax to all importedvehicles.00:25.479 --> 00:32.150Honda wants 90% of all cars sold in the US tobe made in the US.00:32.479 --> 00:37.709America is a big market for the automaker,accounting for some 40% of global sales.00:38.040 --> 00:41.000The news was first reported this morning byNikkei.00:41.200 --> 00:46.959The automaker reported more than 1.4 million.In combined Acura and Honda sales in the US in00:46.959 --> 00:50.9092024, an 8.8% year over year increase.00:51.119 --> 00:56.069It imported about 40% of those cars from Canadaor Mexico,00:56.330 --> 01:00.479according to Reuters.Honda brand sales reached nearly 1.3 million01:00.479 --> 01:05.489units in the US, beating sales targets andfinishing up 11.1%.01:05.760 --> 01:09.449The company experienced its best sales onrecord for the CRV,01:09.540 --> 01:14.360HRV, and electric models, and the Compact Civic,Pilot SUV,01:14.370 --> 01:18.290and Odyssey minivan each topped their specificsegments.01:18.370 --> 01:21.230The company has big plans to launch newproducts this year,01:21.470 --> 01:26.519including the reintroduction of the Prelude asa hybrid electric sport coupe in late 2025.01:26.769 --> 01:32.589Last month, Honda launched the.Acura ADX, a premium compact SUV it plans to01:32.589 --> 01:34.580use to attract young buyers.01:34.819 --> 01:40.830According to Nike, increasing US productioncould force Honda to add new jobs and switch to01:40.830 --> 01:45.069a 3 shift system.The company could also add weekend shifts to01:45.069 --> 01:48.069meet demand.I reached out to Honda, but the company has not01:48.069 --> 01:50.620yet responded to our request for comment.01:50.949 --> 01:53.470I'm David Manti.This is manufacturing now.