Economy News – Follow-up
Honda, a leading Japanese automotive manufacturer, is set to procure batteries for its hybrid vehicles from Toyota’s facility in the United States. This initiative is part of the company’s strategy to mitigate risks associated with customs regulations under the current U.S. administration.
As reported, Honda, being the second-largest car producer in Japan, plans to utilize batteries produced by Toyota in America for approximately 400,000 vehicles starting from fiscal year 2025. The batteries are expected to fully support the operation of all hybrid models sold domestically by Honda.
Currently, Honda sources batteries for its American market from Japan and China. However, in light of potential tariff implications, the company is strategically shifting its supply chain operations.
Additionally, Honda has decided to manufacture the next generation of its popular CIVIC hybrid vehicles in the U.S. rather than Mexico, aiming to further shield its production from possible regulatory challenges, as confirmed by sources.
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