Honda Motor Co., Ltd. HMC has refuted reports that state that the automaker intends to move vehicle production from Canada and Mexico to the United States in response to potential heavy tariffs. Per Honda Mexico, no production changes have been made or are currently being considered for its Mexican operations.
The denials followed a report from the Nikkei newspaper, which claimed Honda was exploring moving some production from its neighboring countries to the United States and aims to manufacture 90% of vehicles sold in the United States domestically. Per the report, Honda also plans to increase its U.S. production capacity by nearly 30% over the next two to three years. HMC carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Per Honda Canada, while the company regularly assesses future production strategies and may temporarily shift operations when needed, it remains confident in its ability to manage market challenges.
The United States remains Honda’s most critical market. In 2024, it sold about 1.4 million vehicles in the country, accounting for nearly 40% of its global sales, with roughly 40% of those vehicles imported from Canada and Mexico. In the first quarter of this year, Honda’s U.S. sales rose 5% to nearly 352,000 units.
Per Reuters, Nissan Motor Co., Ltd. NSANY, Honda's rival, plans to reduce Japanese production of its top-selling U.S. model, the Rogue SUV, over the coming months. The company is reviewing its manufacturing and supply strategies to boost efficiency and remain sustainable. It remains committed to adapting to market changes while focusing on workforce and production capabilities.
This news comes shortly after President Trump said he might delay new auto tariffs, giving automakers more time to adapt. Last week, General Motors Company GM and Nissan announced plans to increase U.S. production. GM will shift more assembly of its popular light-duty trucks to its Fort Wayne, IN, plant. Currently, it produces Chevrolet Silverado and GMC Sierra models in the United States, Mexico and Canada.
Likewise, Nissan also reversed an earlier decision to scale back production at its Smyrna, TN, plant, opting to maintain two shifts to strengthen its U.S. manufacturing presence amid rising tariffs on vehicles imported from Japan and Mexico.
Hyundai recently opened a new electric vehicle plant in Ellabell, GA, aiming to produce 500,000 EVs annually, up from an initial target of 300,000. The automaker plans to invest $21 billion in its U.S. operations by 2028, including $6 billion for local sourcing, logistics and domestic steel production.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
Nissan Motor Co. (NSANY) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
