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Honda Plans To Implement Three Shifts At United States Factory To Mitigate Tariff Impact

Gasgoo 2025-08-08 09:23:49

According to foreign media reports, Honda Motor Co. is considering changing the production shifts at its U.S. plant from a two-shift system to a three-shift system to increase plant output, reduce tariff burdens, and avoid additional capital investment.

A spokesperson for American Honda Motor Co. confirmed to Automotive News that the company is evaluating options to increase production, which, in addition to implementing a three-shift system, may also include production on Saturdays and Sundays.

He did not specify which factories or vehicle models would undergo capacity expansion, but pointed out that tariff policies are a decisive factor.

Image source: Honda Motor Co.

The spokesperson stated, "We are currently assessing the feasibility of such measures, including whether our suppliers can respond quickly."

Honda's CFO, Eiji Fujimura, disclosed at the first quarter earnings briefing held on August 6 that the company's operating profit for the first quarter ended June 30 plummeted by 50% year-on-year, due to the combined impact of delayed investments in electric vehicles and new tariff policies.

For the entire fiscal year ending March 31, 2026, Honda expects its vehicles exported to the United States to face tariff costs of $1.3 billion, along with an additional $1.1 billion in tariff costs related to imported parts and raw materials such as steel, aluminum, and copper.

Although Honda has established a comprehensive production system in the United States, one third of its vehicle supply still relies on production bases in Mexico and Canada. Currently, both countries face the uncertainty and risks of targeted tariff policies under Trump.

On July 31, U.S. President Trump announced that the plan to impose a 30% tariff on goods imported from Mexico would be suspended for 90 days, during which the two countries will work to reach a trade agreement. The 25% tariff remains in effect, but goods that comply with the United States-Mexico-Canada Agreement (USMCA) are exempt from tariffs.

Meanwhile, the United States imposes a 35% tariff on goods imported from Canada; however, goods that qualify under the United States-Mexico-Canada Agreement (USMCA) are exempt.

Honda Motor Co. stated that it will move production of its best-selling model in the United States, the CR-V, to its plant in Indiana. Currently, this compact crossover is already assembled in the U.S. In addition, Honda also produces the CR-V at its East Liberty plant in Ohio.

Honda has not yet stated how it will adjust the Canadian-made Civic models sold in the U.S. market. Honda also has a production line for the Civic at its factory in Indiana, USA.

In May, Honda announced that it would move the production of the hybrid version of the Civic hatchback from Japan to its plant in Indiana. Currently, Honda manufactures the HR-V and the new Acura ADX in Mexico.

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Honda Plans To Implement Three Shifts At United States Factory To Mitigate Tariff Impact

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