Honda Canada has dismissed a Tuesday morning report suggesting the company is considering a major restructuring of its North American manufacturing operations—a change that could significantly impact the Canadian auto sector. The report, published by Nikkei, claimed that Honda might shift production from its plants in Canada and Mexico to the United States in response to increased U.S. tariffs on imported vehicles. According to the report, Honda’s goal would be to build 90% of the vehicles it sells in the U.S. domestically, a strategy that might include moving CR‑V production from its long-established Alliston, Ontario facility.
By Tuesday afternoon, Honda Canada’s spokesperson, Ken Chiu, clarified that while the company would not comment on the specifics of the headlines, it confirmed that the Alliston plant is operating at full capacity for the foreseeable future and that no changes are being considered at this time. Chiu emphasized that Honda continuously reviews its contingency plans and employs short-term production adjustments if necessary, but that Canadian manufacturing remains strong. In 2024, as Canada’s second-largest auto manufacturer by volume, Honda built approximately 69% of the vehicles sold domestically, with 99% of its models coming from North American facilities. Domestic sales are performing well, with a 9% rise in the first quarter, driven primarily by the Canadian-built Honda Civic—the country’s top-selling passenger car—and the Honda CR‑V, Canada’s best-selling hybrid.
Ontario Premier Doug Ford also responded to the report, stating that after speaking with the Honda Canada president, he is confident the company plans to increase its U.S. production while keeping its Canadian operations intact to protect jobs. Similarly, Global Automakers of Canada President David Adams underscored Honda’s deep-rooted commitment to Canada—a commitment that has seen no layoffs since the automaker began operations in the mid-1980s. Adams noted Honda’s operational flexibility within North America, which allows it to adjust production as market conditions dictate, though he stressed that the report remains speculative.
The Alliston facility, a crucial employer in the region with roughly 4,200 workers and an annual output of about 390,000 vehicles, has been the home of CR‑V production since 1986. With the U.S. emerging as Honda’s largest market, accounting for around 40% of global sales, the company is carefully evaluating how recent tariff changes might affect its business. Honda is also investing in new production facilities in Alliston to expand its electric vehicle and battery manufacturing capabilities, ensuring its long-term growth and workforce stability.
