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TOKYO – Honda Motor plans to modify the production of its Fit sub-compact models for sale in Mexico to Japan in the next few years, partly because of the new commercial agreement signed by the countries of Japan. 39 North America, said two people close to the subject.
Fit cars destined for export to the United States are currently being manufactured at the Honda plant in Celaya, Mexico. This plant also manufactures HR-V commercial vehicles for the US market.
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A spokesman for Honda said the company had not made any decisions regarding the production of the Fit model.
The T-MEC, a new trilateral agreement between Mexico, the United States and Canada, which would replace the North American Free Trade Agreement (NAFTA), would raise the minimum component of US origin in vehicles from 62.5% to 75% market with tariff preferences.
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The President of the United States, Donald Trump, wants the new agreement to help reduce the country's trade deficit by reducing imports and by promoting the production of foreign-brand vehicles locally.
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But the terms of the renegotiated pact reduce incentives for Honda to produce Fit cars in Mexico destined for the US and European markets, said these sources, one of whom has direct knowledge of the plan. The other source has received information about the plans.
Both sources asked not to be identified because the case is still treated confidentially.
In addition, according to the sources, American consumers are increasingly choosing SUVs, which makes the manufacture of these models more advantageous for the Mexican plant than for subcompacts.
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