Adios, Amigo? Honda Considering Moving Fit Production Out of Mexico, Report Says

It’s rumored that Honda is considering reallocating production of its U.S.-market Fit subcompact to Japan from Mexico in a few years. According to reports, this is partly due to everything that’s going on with the North American Free Trade Agreement, or whatever they’re calling it now.

The new arrangement, which replaces NAFTA, is set to raise the minimum North American content for cars to qualify for duty-free market access to 75 percent from 62.5 percent, while simultaneously raising Mexico’s auto workers’ minimum wage and giving them the right to union representation.

That might make things tricky for a budget model with relatively slim profit margins. According to Reuters, sources at the company say Honda is trying to decide whether or not it’s worth it in the long run. The discussion is said to be highly confidential, necessitating the sources’ need for anonymity.

A Fit assembly swap could be a predictor for how other automakers might react under the new trade deal. One of the employee said if Honda decides to shift production out of Mexico, it would wait until the company launches its fourth-generation model. The next-gen Fit is rumored to arrive sometime in 2021.

U.S.-bound Fits are presently assembled at Honda’s plant in Celaya, Mexico, alongside the HR-V crossover. A Honda spokesman informed Reuters that the company had not made any final decisions on vehicle production.

[Image: Honda]