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Honda Fit Production May Move Back To Japan

Oct. 28, 2018 8:15 AM ET by Jared Rosenholtz / 7 Comments Perhaps our new trade deal isn't as good as we'd hoped. Over the past year, trade tensions between the US and Mexico have been on edge after President Donald Trump threatened to hit Mexican-built cars with a border tax. After long negotiations, the US and Mexico reached a new deal, which replaces the North American Free Trade Agreement (NAFTA). As part of the new deal, all Mexican-built vehicles with more than 75% parts content from the US or Mexico will avoid any sort of tax. Mexico's economy minister confirmed that this deal should protect over 70% of Mexican-built vehicles. But what about the other 30%? Honda Honda Honda Honda According to a Reuters report, Honda is currently thinking about moving US-bound Fit production away from its plant in Celaya, Mexico back to Japan. The Celaya plant also produces the Honda HR-V for the US market, though only the Fit was mentioned by those in the know. Sources close to the issue also say Honda is considering the move due to the new trade agreement. This is likely because the Fit is built using less US and Mexican parts content than the new trade agreement allows, meaning it will be hit by a tariff. Since the Fit is an inexpensive car to begin with, any sort of price hike could have an adverse effect on profits. Honda A Honda spokesperson said the company is not ready to make a decision on Fit production, but rumors indicate a move could happen within the next few years. The Fit just received a refresh for 2019 and the company is currently working on a new model that is due in 2020. Perhaps, when the new Fit arrives, it will be built in Japan instead of Mexico.

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Honda Fit Jared Rosenholtz Editor-at-Large After graduating with an MBA, Jared pursued his love of cars by becoming an automotive journalist. An internship with CarBuzz grew into his current position as Editor At Large. Jared now spends most of his time evaluating new vehicles and chasing the latest news stories in the automotive industry. When he’s not attending Cars & Coffee events on the weekend, Jared loves to watch NFL football and cruise around with the top down in his German convertible. Contact Jared @Carsnbites @jar_rosenholtz LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top