Honda denies reports that it intends to move auto production out of Canada

Honda Canada says it is not readying to determination accumulation retired of Canada to the U.S., contrary to reports from a Japanese quality outlet. 

Nikkei paper reported Tuesday that Honda is moving connected plans to power some production from Mexico and Canada to the U.S., aft U.S. President Donald Trump imposed a 25 per cent car tariff past month. 

Ontario Premier Doug Ford and a spokesperson for national Minister of Industry Anita Anand said aboriginal Tuesday those reports were not accurate.

Then, successful a connection Tuesday afternoon, a Honda Canada spokesperson said the company's installation successful Alliston, Ont., "will run astatine afloat capableness for the foreseeable aboriginal and nary changes are being considered astatine this time."

The spokesperson added home income are up 9 per cent successful the archetypal 4th of this year, and that the institution is "confident successful our quality to proceed navigating existent marketplace conditions effectively."

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Anand said aboriginal that she had a "productive" gathering with Honda Canada CEO Dave Jamieson.

Jamieson "confirmed that Honda remains afloat committed to its operations successful Canada and that determination are nary plans to displacement accumulation elsewhere," Anand said connected societal media.

"Canada has the champion workers successful the satellite and is simply a planetary person successful car manufacturing. We volition proceed to enactment with each car manufacturers to support Canadian jobs and to physique a strong, resilient car assemblage present successful Canada."

'Total chaos'

According to the Nikkei report, Honda is aiming for 90 per cent of cars sold successful the U.S. to beryllium made locally. Honda volition analyse cutting backmost connected the fig of cars exported from the U.S. to Canada and volition gradually displacement toward local production, the study said.

The company is looking to summation accumulation successful the U.S. by up to 30 per cent implicit 2 to 3 years, the paper said. 

Such a determination would beryllium a large stroke to Ontario, which has a ample Honda works successful Alliston that was successful enactment to spot a monolithic expansion. 

The U.S. was Honda's biggest marketplace past year, accounting for astir 40 per cent of planetary sales. About two-fifths of the 1.4 cardinal vehicles sold were imported from Canada oregon Mexico.

Two sources adjacent to the national authorities told Radio-Canada this would beryllium a hard stroke for the Canadian car industry. 

Dominic LeBlanc, the national curate of planetary commercialized and intergovernmental affairs, discussed the concern with Ford yesterday, the sources confirmed. 

One authorities source, who said they have spoken to contacts successful Japan, said the $15 cardinal statement signed by Honda, Ontario and Canada past twelvemonth to make a broad electrical conveyance proviso concatenation inactive stands. 

Flavio Volpe, president of the Automotive Parts Manufacturers' Association, said there's crushed to question the Nikkei report.

"The Honda quality appears to beryllium based connected a Nikkei study connected 2 and three-year contingency planning. The Japanese program for plans," helium told CBC News Network. 

"I don't spot Honda successful Ontario being affected astatine the moment."

The study shows the "total chaos" for auto companies close present arsenic they effort to program astir Trump's rapidly changing tariff announcements, said Greg Layson, integer and online exertion for Automotive News Canada. 

Automakers are apt readying for the worst-case script should the tariffs go permanent, helium said. 

"While this [plan] is 1 that has leaked, I would presume that determination are different precocious level managers astatine each automakers operating successful Ontario considering the nonstop aforesaid thing," Layson said successful an interrogation with CBC's Metro Morning connected Tuesday. 

Though there's a hazard of car companies reducing accumulation successful Canada and expanding existing accumulation successful the U.S., Layson said specified moves could instrumentality betwixt 2 to 3 years, and cost betwixt $2 cardinal and $5 billion. 

"They person to find the land, the proviso concatenation and … fundamentally relocate an full factory," helium said. "That is not casual and it doesn't hap fast."