Honda responds to report some Alliston, Ont. production may move to U.S. amid tariffs

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Rumours swirl about Honda switching gears on Canadian production

Uncertainty over tariffs fuel concern amid Honda speculation

Honda Canada says a report published Tuesday morning claiming it may be considering a major restructuring of its North American manufacturing footprint that would have major implications for the Canadian auto sector is inaccurate.

A newspaper report published by Nikkei stated the Japanese automaker is considering shifting production from Canada and Mexico to the United States in response to increased U.S. tariffs on imported vehicles.

The report said Honda aims to manufacture 90 per cent of the vehicles it sells in the United States within the U.S., a move that could result in relocating production of the CR-V from its longtime home in Alliston, Ont.

By Tuesday afternoon, a spokesperson with Honda Canada issued a statement that didn’t outright deny the Japanese news outlet’s report, but rather noted, “This was not an announcement by Honda and we cannot comment on the specifics of this morning’s headlines,” wrote Ken Chiu, with the automaker’s corporate communications. “However, we can confirm that our Canadian manufacturing facility in Alliston, Ontario, will operate at full capacity for the foreseeable future and no changes are being considered at this time. We constantly study options for future contingency planning and utilize short-term production shift strategies when required, to mitigate negative impacts on our business.”

The statement emphasized Honda’s domestic sales. “As the second largest auto manufacturer in Canada by volume in 2024, approximately 69 per cent of all Honda vehicles sold in Canada are built in Canada, and 99 per cent of vehicles sold here are sourced from North American facilities.”

It continued, “Canadian production will remain at full capacity thanks to domestic sales, which are up 9 per cent in the first quarter of this year, led by the Canadian-built Honda Civic, Canada’s top-selling passenger car in 2024, and the Honda CR-V, the best-selling hybrid in Canada in 2024.”

Premier Responds

Ontario Premier Doug Ford told reporters Tuesday morning he spoke with the president of Honda Canada following the Nikkei report. “It’s not accurate at all. They [Honda] want to increase production down in the U.S.,” the premier said. “We’re gonna keep Honda here. And I’ll do everything I can do protect the people and their jobs.”

Global Automakers of Canada President David Adams highlighted Honda’s longstanding, multi-billion-dollar dedication to the nation.

“Since they’ve started their operations here in mid-1980s, they’ve never laid off an employee. I suspect their commitment is going to continue to be in the Canadian marketplace,” Adams said in an interview with CTV Barrie on Tuesday. “They do have a fairly robust and flexible integrated ability within North America to move production around as markets dictate in the different countries, so maybe that’s part of what this [report] was referring to, but that’s really only speculation on my part.”

Alliston Production

The facility is one of the region’s largest employers, with an estimated 4,200 workers producing roughly 390,000 vehicles per year. Many of those employees live in Simcoe County and surrounding areas.

The U.S. is currently Honda’s largest market, accounting for roughly 40 per cent of its global sales. Last year, the automaker sold 1.4 million vehicles in the United States, including its premium Acura line. Around two-fifths of those were imported from plants in Canada or Mexico. In its first quarter of this year, Honda’s U.S. sales increased five per cent to nearly 352,000 vehicles.

Late last month, following U.S. President Donald Trump’s announcement of a 25 per cent tariff on imported vehicles, Chiu stated the company was “working to understand the full impact of the imposed U.S. tariffs” on the business.

“We remain focused on protecting our more than 4,000 manufacturing associates and our long-standing business operations in Canada. Our path is for the long-term and with our North American power-train production flexibility. We are confident we can pivot effectively,” Chiu added.

The new levies on automotives kicked in earlier this month.

In September, Honda announced its plans to expand production with two new facilities in Alliston where more than 4,200 workers would assemble electric vehicles and batteries.

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