Toronto, Canada -- Canadian government officials are denying reports Honda plans to stop producing vehicles in Canada.
On April 15, the Japanese newspaper Nikkei reported the automaker plans to shift production from its Canadian and Mexican facilities into the U.S. due to the 25 per cent auto tariff recently imposed by U.S. President Donald Trump. The move was also said to be a part of a broader plan to move 90 percent of its manufacturing of U.S. vehicles within the country.
The company responded to requests for clarity from both the federal government and the provincial government of Ontario. Industry Minister Anita Anand told several news outlets the OEM had provided assurances it wasn’t considering such a move.
During a press scrum at Queen’s Park, Ontario Premier Doug Ford also described the report as inaccurate, adding that he expects Dave Jamieson, president of Honda Canada, will make a similar announcement in the near future.
Both Anand and Ford are expected to meet with Jamieson at some point on April 15. Prior to their meetings, Honda Canada also released a statement denying some aspects of the report.
"This was not an announcement by Honda and we cannot comment on the specifics of this morning's headlines. However, we can confirm that our Canadian manufacturing facility in Alliston, Ontario, will operate at full capacity for the foreseeable future and no changes are being considered at this time."
The OEM currently about 19,000 people across the country. Its largest facility, in Alliston, Ontario, employs 4,200 people.
As recently as last year, the company appeared intent on expanding its operations in the Great White North. Last April, Toshihiro Mibe (pictured), Honda's chief executive officer, joined Ford and then-Prime Minister Justin Trudeau in Alliston to announced plans to invest approximately $15 billion to build a comprehensive electric vehicle value chain in Canada.
Rumours of Honda’s departure from Canada are already raising concern about a more widespread OEM exodus, which would have devastating consequences for the Canadian economy.
In total, Canada’s automotive manufacturing sector employs around 125,000 people directly and supports 462,000 other jobs, including in the auto repair sector.
About 90 percent of these positions are full-time ones with wages exceeding the national average. In 2022, it contributed about $14 billion to the Canadian economy.
