Curated key Supplier Updates from Honda, Manufacturing Leaders & Industry Trends for the week of Feb. 24-March 2, 2025
National & North American Highlights
Honda Adjusts Civic Production to Indiana
To navigate potential cost increases linked to new U.S. tariffs on imports from Mexico, Honda announced plans to shift production of the next-generation Civic Hybrid to its Indiana plant. This move reflects Honda’s ongoing focus on supply chain flexibility and cost management while continuing to align with its EV and hybrid strategy. Learn More: Reuters Coverage
Steel & Aluminum Tariffs Return
Effective March 12, 2025, the U.S. government will raise aluminum tariffs from 10% to 25%, while reinstating 25% tariffs on steel imports. For automotive suppliers — especially those working with materials sourced internationally — this policy change could impact pricing, contracts, and material sourcing strategies. Full Update: DLA Piper Analysis
Honda Unveils Next-Generation Fuel Cell Plans
Honda revealed details about its next-generation fuel cell module, which boasts double the durability and 50% lower production costs compared to the current model. While production is set for 2027, this innovation could shape future supplier partnerships and advanced technology integration opportunities. Read the Announcement: Honda Global Newsroom
U.S.-Canada-Mexico Trade Tensions Escalate
With new 25% tariffs imposed on many imports from Mexico and Canada, along with reciprocal actions from both countries, cross-border suppliers face mounting uncertainty. Automotive components, raw materials, and even logistics could see ripple effects. Suppliers operating in North America should review sourcing strategies and monitor evolving trade guidance. Background Summary: Wikipedia Overview
Regional Highlights
Central Region: Ohio, Michigan, Kentucky, Indiana
Manufacturing Investments Could Open New Doors
Eli Lilly announced a $27 billion investment in new U.S. manufacturing plants. While final locations haven’t been confirmed, manufacturing hubs in states like Ohio, Indiana, and Michigan could be strong contenders, opening doors for regional suppliers to partner on construction, equipment, and ongoing operations. Read More: Wall Street Journal
Canada & Mexico:
Supply Chain Strategies Shift as Trade Policies Evolve
In Mexico’s Nuevo León, automotive investment is surging despite tariff concerns. Honda suppliers with operations in Mexico should evaluate how regional competitiveness may be affected — and whether adjustments to logistics, partnerships, or pricing models are needed in response to both growth and policy pressures.
Mexico Manufacturing Insights: Mexico Nowco have announced retaliatory measures, raising concerns about significant disruptions to North American trade and supply chains. en.wikipedia.org