A Japanese news outlet is reporting that Honda is considering moving some of its production out of Canada amid the ongoing tariff threats from U.S. President Donald Trump — though automotive experts in Ontario said early Tuesday this may be contingency planning.
Honda is considering switching some car production from Mexico and Canada to the United States, aiming for 90 per cent of cars sold in the country to be made locally in response to new U.S. auto tariffs, the Nikkei newspaper reported on Tuesday.
Such a move would be a major blow to Ontario, which has a large Honda plant in Alliston that was in line to see a massive expansion.
Two sources close to the federal government told Radio-Canada this would be a hard blow for the Canadian auto industry.
Dominic LeBlanc, the federal Minister of International Trade and Intergovernmental Affairs, discussed the situation with Ontario Premier Doug Ford yesterday, the sources confirmed.
One government source, who said they have spoken to contacts in Japan, said the $15 billion agreement signed by Honda, Ontario and Canada last year to create a comprehensive electric vehicle supply chain still stands.
Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, said there’s reason to question the Nikkei report.
“The Honda news appears to be based on a Nikkei report on two and three-year contingency planning. The Japanese plan for plans,” he told CBC News Network.
“I don’t see Honda in Ontario being affected at the moment.”
CBC News has reached out to Honda for an official comment.
More to come.
