Toronto, Ontario — In this weekly Tuesday Ticker, Honda contemplates bringing Toyota’s batteries to the Great White North, while Ford ponders its strategies.
Honda’s hunch
Honda could soon source batteries for its hybrid vehicles from Toyota Motor's U.S. plant, according to a report by the Nikkei newspaper.
Starting from fiscal 2025, Honda may utilize Toyota's domestically produced batteries for approximately 400,000 vehicles, covering its entire hybrid car sales in the U.S.
This strategic shift aims to mitigate tariff risks associated with the Trump administration’s trade policies. Currently, Honda imports batteries from Japan and China, but the potential for tariffs has prompted a reevaluation of its supply chain.
Additionally, Honda is moving production of its next-generation Civic hybrid to Indiana, rather than Mexico, to further protect against tariff impacts.
The collaboration with Toyota marks a significant step for Honda as it adapts to the evolving landscape of the automotive industry.
Ford’s plan
Ford’s Supply Chain Chief has said that, due to the U.S. tariff plan, the automaker is stockpiling parts.
“As the station continues to develop, we require all suppliers to continue shipping parts by existing contractual terms, including pricing and delivery schedules,” said Liz Door, supply chain chief for Ford.
As of 3 p.m. EST Tuesday, Ford stock traded at US$9.94 (CAD$14.20), down 2.25 percent year-to-date and down US$18.39 (CAD$26.27) year-to-date.
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