WEBVTT
X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
00:00.119 –> 00:03.369
Honda has scrapped production plans for its
Civic hybrid in Mexico,
00:03.470 –> 00:05.760
shifting production to an Indiana facility.
00:06.000 –> 00:10.670
Japan’s second largest automaker makes the
shift with tariffs and trade wars in mind.
00:10.880 –> 00:15.800
President Donald Trump has imposed 25% tariffs
on Mexican-made products.
00:16.059 –> 00:20.389
About 80% of Honda’s Mexican exports wind up in
the United States,
00:20.600 –> 00:24.549
selling 1.4 million cars and trucks in the US
last year.
00:24.889 –> 00:29.840
Furthermore, about 40% of Honda’s US sales are
imported from Mexico and Canada.
00:29.969 –> 00:36.759
Honda may still face retaliatory tariffs as the
automaker exports some 60,000 US made cars to
00:36.759 –> 00:40.759
Mexico and Canada.
Mexico was originally chosen as a manufacturing
00:40.759 –> 00:46.069
hub for the Civic hybrid as automotive
production costs rose in Canada and Indiana.
00:46.240 –> 00:49.680
The new tariffs have drastically altered those
plans both short and long.
00:49.770 –> 00:53.389
Long term production will be moved to Honda’s
Greensburg facility,
00:53.560 –> 00:56.240
which currently produces the company’s CRV
models.
00:56.400 –> 01:01.479
Mexican production on the next generation Civic
was scheduled to begin in November 2027.
01:01.680 –> 01:05.800
Now production has been pushed to the start of
May 2028.
01:05.879 –> 01:08.430
The move is a win for the Trump administration.
01:08.680 –> 01:12.269
The president called out the move during his
address to Congress last night.
01:12.519 –> 01:16.110
Trump hopes to see more continued growth in.
The US auto industry.
01:16.360 –> 01:20.150
Last year, more than 240,000 Civics were sold
across the US.
01:20.360 –> 01:24.470
Both gas and hybrid models saw a drastic 21%
rise in sales,
01:24.680 –> 01:27.949
making the Civic Honda’s second best seller
following the CRV.
01:28.160 –> 01:33.040
Once production begins, the plant plans to make
about 210,000 vehicles annually.
01:33.199 –> 01:37.879
If the facility is unable to meet that goal,
Honda will look to import from nations that
01:37.879 –> 01:39.669
have not been hit by tariffs.
01:40.000 –> 01:42.669
I’m Devon Verbsky, and this is manufacturing
now.