As of 2026, Honda has not announced a wholesale relocation of all production from Mexico to the United States. The company continues to operate plants in both countries and is pursuing a broader North American manufacturing strategy that includes expanding U.S. production for certain models and investing in an American battery-cell plant with LG Energy Solution.
What is driving the debate?
The discussion around nearshoring and reshoring is shaped by policy developments in the United States, including the Inflation Reduction Act and trade rules under USMCA. These measures encourage domestic production and locally sourced components for EVs, prompting automakers to reassess where they build vehicles and key parts for the U.S. market.
Honda's North American footprint
The company maintains a multi-country manufacturing network across the United States, Mexico, and Canada. Below is a snapshot of its cross-border presence in North America (production locations and roles vary by model and year).
Note: The following list highlights representative facilities involved in vehicle and powertrain production across the region; availability and output can shift with model changes and strategic decisions.
- United States: multiple assembly and engine plants in states such as Ohio and Alabama, producing SUVs, cars, and engines for the U.S. market.
- Mexico: a major production hub for several models and engines destined for the U.S. and global markets.
- Canada: manufacturing and regional supply operations supporting North American production.
Despite shifts in planned production, Honda remains committed to leveraging its North American network to serve customers across the region.
What has Honda announced about future investment?
Before listing Honda's announced investments, here is a summary of the key areas where the company has signaled a stronger U.S. focus, aligned with its EV strategy and tax-credit-driven production plans.
- Expanding U.S. production capacity for traditional and hybrid models, as well as upcoming electrified offerings, in existing or new plants.
- Creating an American battery-cell plant in partnership with LG Energy Solution to secure U.S.-made batteries for Honda's EV lineup.
- Strengthening North American supply chains and nearshoring parts and components to meet regulatory requirements and customer demand.
These steps are part of a broader strategy to localize more of the supply chain in North America, while maintaining Mexico as a production base for select models and components where cost and logistics make sense.
What this means for jobs and trade
Analysts say the moves could affect jobs across the region differently, with potential job gains in U.S. plants and in the U.S.-based battery-supply chain, while maintaining Mexican operations for existing and future models. The net effect depends on model mix, regulatory changes, and demand for EVs.
Consumer impact
For car buyers, the shift could influence vehicle availability, pricing, and eligibility for U.S. EV tax credits as the supply chain becomes more U.S.-based. Honda's decisions may lead to changes in where certain models are built and how quickly new EV variants reach the market.
Summary
Honda has not announced a wholesale move of production from Mexico to the United States. The company continues to operate in Mexico while expanding U.S. capacity and investing in the battery-supply chain to support its North American EV strategy. The policy environment, trade rules under USMCA, and IRA incentives are shaping where and how Honda builds vehicles in North America, with near-term signals pointing to greater U.S.-based production for some models and components rather than a full relocation away from Mexico.