Japanese automaker Honda is preparing to shift most of its North American production to the United States, aiming to manufacture 90% of its cars sold in the U.S. domestically by 2030, according to Nikkei reports.
This strategic move comes amid rising geopolitical risks, trade tensions, and shifting supply chain dynamics across North America.
Relocating Production from Mexico and Canada
Honda plans to gradually move vehicle assembly operations from its plants in Mexico and Canada to U.S. factories. The company hopes this transition will reduce logistical risks, avoid potential tariffs, and strengthen its position in the U.S. auto market.
By localizing production, Honda aims to:
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Shorten delivery times
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Stabilize supply chains
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Respond faster to U.S. market demand
Currently, about 70% of Honda vehicles sold in the U.S. are produced locally. The company targets increasing this share to 90% within the next five years.
U.S. Expansion Strategy
Honda’s new strategy aligns with recent trends among global automakers who are diversifying their manufacturing footprint amid increasing trade uncertainty.
The move is also expected to create new jobs at Honda’s U.S. plants and increase investments in local infrastructure and supply partners.
