Honda may scrap plans for an eighth North American assembly plant without an extension of the United States-Mexico-Canada Agreement (USMCA). Executive Vice President Noriya Kaihara stated the company needs the facility to meet rising demand for hybrid models. The automaker currently operates near full production capacity in the region.
Honda must decide on the new factory within the next one to two years. The company targets a 2030 operational date for the facility.
The investment depends on the outcome of trade negotiations between the U.S., Mexico, and Canada. Hyundai previously delayed over $20 billion in potential investments due to similar USMCA uncertainty.