A Japanese information outlet is reporting that Honda is contemplating transferring a few of its manufacturing out of Canada amid the continued tariff threats from U.S. President Donald Trump — although automotive consultants in Ontario stated early Tuesday this can be contingency planning.
Honda is contemplating switching some automobile manufacturing from Mexico and Canada to the US, aiming for 90 per cent of vehicles offered within the nation to be made domestically in response to new U.S. auto tariffs, the Nikkei newspaper reported on Tuesday.
Such a transfer could be a serious blow to Ontario, which has a big Honda plant in Alliston that was in line to see a large growth.
Two sources near the federal authorities instructed Radio-Canada this may be a tough blow for the Canadian auto trade.
Dominic Leblanc, the federal Minister of Worldwide Commerce and Intergovernmental Affairs, mentioned the state of affairs with Ontario Premier Doug Ford yesterday, the sources confirmed.
One authorities supply, who stated they’ve spoken to contacts in Japan, stated the $15 billion settlement signed by Honda, Ontario and Canada final 12 months to create a complete electrical automobile provide chain nonetheless stands.
Flavio Volpe, president of the Automotive Elements Producers’ Affiliation, stated there’s purpose to query the Nikkei report.
“The Honda information seems to be based mostly on a Nikkei report on twoand three-year contingency planning. The Japanese plan for plans,” he instructed CBC Information Community.
“I do not see Honda in Ontario being affected for the time being.”
CBC Information has reached out to Honda for an official remark.
Extra to return.
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