Canada election: Party leaders weigh in on report Honda could shift some production to U.S. amid trade war
Report suggests Honda may relocate production from Canada
Good morning. As a senior producer with the Parliamentary bureau’s digital team, I wanted to bring to your attention some recent developments regarding Honda’s production plans.
According to a report in the Japanese Nikkei newspaper, there are indications that Honda is contemplating moving some of its car manufacturing operations from Mexico and Canada to the United States. The report suggests that the company is aiming to have 90% of the cars sold in the U.S. produced locally, in response to the tariffs imposed by President Donald Trump on foreign-made automobiles.
While CBC News has not independently verified this report, it has raised concerns within the Canadian auto industry. Honda currently operates a plant in Alliston, Ontario, which is in the midst of an expansion. Two federal government sources have expressed apprehension about the potential impact of such a move on the industry.
It has been reported that International Trade Minister Dominic LeBlanc and Ontario Premier Doug Ford discussed the matter yesterday. However, Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, has downplayed the significance of the report, suggesting that it may be part of contingency planning.
Volpe stated, \”The Honda news seems to be based on a Nikkei report outlining two- and three-year contingency plans. The Japanese are known for their meticulous planning. I do not foresee any immediate impact on Honda’s operations in Ontario.\”
Finance Minister François-Philippe Champagne’s office has confirmed that he has been in contact with a senior Honda official in Japan. The minister’s office released a statement indicating that it is currently unclear whether Canadian production will be affected by Honda’s decision-making process. Champagne is closely monitoring the situation.
We anticipate that the federal party leaders will address this issue today. Additionally, we have reached out to Honda for their perspective on the matter.
