Honda will move to the USA? Canada surprised by reports

Canada was surprised by the Tuesday information of Japanese media about the possibility for Honda to transfer part of the production of cars to the USA. Politicians denied after talks with Honda, and experts say that there may be more reports of such emergency plans.

Nikkei's Japanese financial diary cited by the Canadian Press agency wrote on Tuesday that Honda is considering moving part of its production from Canada to the USA. A few hours later, the Federal Industry Minister Anita Anand denied these reports. In the post on Platform X, she emphasized that the government knows about such unconfirmed messages, but “Honda announced that no decisions about such production steps that have influenced by actions in Canada were made and are not considered at the moment.” She added that on Tuesday she would meet with the president of Honda Canada on this matter.

Prime Minister Ontario Doug Ford said that the President of Honda Canada told him that Nikkei reports are “inaccurate”, and Honda wants to increase production in the US, but not at the expense of production in Canada, and the Canadian Honda plants work normally and there is no issue of release, “Canadian Press said.

Honda plants in Canada are located in Alliston in the province of Ontario, they employ approx. 4.2 thousand. people. The Canadian automotive industry is concentrated in the province of Ontario, American customs have already affected, for example, Stellantis plants in Windsor, where employees are on temporary dismissals until April 21.

Experts cited on Tuesday by a public CBC broadcaster emphasized that such information as the Honda indicate the chaos that currently accompanies automotive companies in connection with the changing decisions of US President Donald Trump regarding customs. The information obtained by Nikkei is probably one of the plans of many companies prepared in the event of the worst development of the situation – said CBC the publisher of Automotive News Canada Greg Layson. He also pointed out that the transfer of production to another place takes from 2 to 3 years, and the costs associated with it are 2-5 billion Canadian dollars.

At the beginning of March this year. Dziennik Windsor Star reported that trade unions intend to block all attempts at manufacturers of car transfer from Canada to the USA, including attempts to remove machines from Canadian factories.

On Tuesday, the Minister of Finance Francois-Philippe Champagne announced the rules for helping Canadian companies affected by American customs duties and Canadian retaliation, including car manufacturers. Automotive companies that will maintain car production in Canada will be able, without paying Canadian duties, import cars installed in the US, if they meet the requirements of Cusma, i.e. free trade agreements between Canada, the USA and Mexico. If a given company reduces production or investments in Canada – the size of duty -free imports will be reduced – Champagne said in a message.

In addition, the government awarded a six -month release from Canadian duties for such goods imported from the USA, which are needed in the production, processing and packaging of food, as well as for goods needed in healthcare, public safety and defense. A previously announced loan program for large companies was also made available.

From Toronto Anna Lach (PAP)

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