Honda Is Moving CR-V Production from Canada to the U.S. Due to Tariffs
Honda has announced that it will move production of the CR-V from Canada to the United States to reduce the impact of President Trump’s tariffs.
To accommodate the Canada-built CR-Vs, Honda will have to increase capacity at its U.S. factories in Indiana and Ohio.
Honda is also postponing its planned $11 billion investment in new EV factories in Ontario, Canada, due to slowing demand in North America.
Honda currently splits production of the hugely popular CR-V compact SUV between Canada and the United States. However, due to the tariffs imposed by the Trump administration, Honda is shifting all of its CR-V production to the U.S. The automaker’s CEO, Toshihiro Mibe, made the announcement yesterday during a press conference.
He said the decision to move CR-V production from Canada to the U.S. is to “minimize the impact of tariffs.” Since U.S.-built CR-Vs are made at factories in Greensburg, Indiana, and East Liberty, Ohio, capacity at those plants will need to be increased. The Civic hatchback is built alongside the CR-V at the Indiana plant, and Honda also confirmed that it plans to stop building the five-door Civic at its factory in Yorii, Japan, and shift production to Indiana sometime this summer. The Acura RDX and MDX share the Ohio production facility with the CR-V.
During Monday’s press conference, Mibe also touched on the impact that the disruptive tariffs could have on prices. While Honda hasn’t yet had to raise prices on its new cars, Mibe said the company will see what its competitors are doing and decide what models might need revised pricing.
In yet another blow to Honda’s Canadian footprint, the automaker said that it is postponing its plans to build new EV factories in Ontario, Canada. Last year, the company announced that it would invest nearly $11 billion in its North American EV supply chain. The plan was to build a stand-alone EV battery plant in Alliston, Ontario, along with another factory that was scheduled to start producing EVs sometime in 2028. Mibe said the sluggish growth of the EV market in North America is to blame for Honda’s decision to postpone its Canadian investment.
Car and Driver has reached out to a Honda spokesperson for comment on the news, and they provided the following statement: “The Honda CR-V and CR-V Hybrid are currently made at the East Liberty Plant in Ohio, Indiana Auto Plant, and Honda of Canada Mfg. Honda continually looks for ways to very carefully optimize production to meet customer needs and market conditions. Regardless of potential future shifts in model production location, there are no plans to decrease overall Honda of Canada Mfg. production volume or employment.”
