Honda Revamps Civic Production Plans Amid Tariff Concerns

GREENSBURG, Ind. – Honda has announced a significant shift in its production strategy for the Civic, abandoning earlier plans to move manufacturing to Mexico. Instead, the automaker will continue producing the next-generation Civic at its facility in Greensburg, Indiana, with plans set to commence in May 2028.

This decision comes on the eve of the Trump administration’s 25 percent tariffs on imports from Canada and Mexico. According to a recent Reuters report, three unnamed sources confirmed that initial plans were to initiate production in Guanajuato, Mexico, by November 2027, driven by rising costs in Indiana and Canada.

Currently, Honda manufactures its Civic and CR-V models at plants in Indiana and Ontario, Canada. Apart from the performance-oriented Civic Type R, which is produced in Japan, the majority of Honda’s North American vehicle lineup is manufactured within these two facilities.

The production shifts are anticipated to yield around 210,000 units annually. Should production figures fall short, Honda has indicated it may seek imports from countries not affected by the tariffs.

In 2022, Honda reported a 21 percent increase in Civic sales, totaling over 242,000 units sold. Approximately 40 percent of Honda’s U.S. sales are comprised of vehicles imported from Canada and Mexico. The potential impact of retaliatory tariffs poses a significant risk to the automaker’s operations.

A Honda representative provided a statement to Car and Driver, asserting, “Honda has made no such announcement and will not comment on this report. 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.”

Honda’s decision sheds light on the evolving landscape of the automotive industry, which faces ongoing challenges from supply chain disruptions and political tariffs. The company’s strategic pivot reflects an effort to navigate these uncertain waters while continuing to meet consumer demands.