You didn’t read the press release, did you, Trumpian?
They aren’t even going to start production until May 2028. The economy will be in shambles by then.
Plus, they’re moving production to an existing plant, not building a new one. They’ll just end production of one model, and start building Civics.
Total net job growth; zero.
And the big one, they said, “Such a move will depend on future market conditions.”
Honda produces cars at the best economic rate possible. Labor in Mexico is cheaper than the cost of new automation. So, workers are used to build the cars. In Indiana, labor will be much higher making it cost effective to increase automation.
To keep the MSRP on the Civic competitive, they will have to cut production cost; that would be workers. Moving the production to Indiana will not result in increased jobs in the U.S.; it will just reduce jobs in Mexico and after the return on the investment in new automation it will eliminate hands on workers, result in higher profits for Honda.
The new automation will spill over into other line jobs, further reducing U.S. jobs. Overall this will result in less employment opportunities for U.S. workers in Indiana. Tariffs simply moved automation up a decade or so.
As cost of labor increases, so does automation. Simple example is fast food. Notice how few workers are needed with new automation after wages went up? That’s how it works; it’s all about profits. Tariffs will result in either higher Civic prices or fewer autoworker jobs. My bet is on fewer jobs. Do the math ……. This is not a Democrat or Republican thing; it’s simply profits for Honda. They could care less who we vote for.
Honda is a foreign car. We all agree on that, right? right. Their Civic is Honda’s cheapest line of car, are we agreed on that? Out of a batch of cars:
Honda offers a variety of car lines, including sedans, SUVs, and hatchbacks, such as the Civic, Accord, CR-V, HR-V, and Ridgeline. They also offer a luxury brand, Acura, which has its own distinct lineup.
Here’s a more detailed breakdown:
Honda’s Main Car Lines:
- Sedans: Civic, Accord.
- SUVs: CR-V, HR-V, Pilot, Passport, Ridgeline.
- Hatchbacks: Fit, Civic Hatchback.
- EV: Prologue.
Honda’s Luxury Brand:
- Acura: Acura also offers sedans, SUVs, and a coupe
So, its cheapest line out of many? Right?
Moving costs money? Are we all agreed on that? So, we have the cost of land, building a factory, or at least refurbishing an old one, right? Labor is going to cost more because American labor cost more, right? Are we agreed on that?
Costs of materials, metal, steel, fabric, computers, compter chips? Well, these might have a tariff on them because they are not all produced in the US? Are we agreed on that?
Only one market for said car…no international car sales because of retalitory tariffs: are we agreed on that? So no economies of scale either on the production side, either? Right?
I think, like the gentleman before me, we are now looking at their cheapest and smallest car weighing in at over $50,000 /$60,000 or more….MIGHT we be in agreement on that?
And that is out of a batch of 11 different makes and several models under each make. And that is just one manufacturer…right?
It’s a token gesture at best.
