Honda to shift Civic Hybrid production to U.S. from Japan

Honda Motor this week said it is moving production of its Civic Hybrid hatchback from Japan to the U.S. The announcement comes amid a barrage of tariffs by the Trump administration, including a 25% levy on imports from Canada and Mexico and 25% auto tariffs.

"We are currently dual-sourcing the Civic Hatchback Hybrid from our Indiana Auto Plant and Japan, but beginning later this year it will be produced only in Indiana," said Chris Abbruzzese, a spokesperson for American Honda Motor Co., confirmed with CBS MoneyWatch.

The reason behind the shift in production was not disclosed. However, another spokesperson for the auto giant said it was not down to a single issue, but instead based on "the company's policy since its foundation that we produce cars where the demand is," AFP reported.

Honda's hybrid hatchback is a semi-electric version of the Honda Civic, a top U.S. seller among small cars, according to the Detroit Free Press.

More than two-thirds of Honda and Acura models sold in the U.S. are manufactured domestically, according to Autoweek.com. The industry trade outlet reports that the company has denied rumors of any plans to also shift production of its Honda Civic Hybrid sedan, which is manufactured in Canada, to the U.S.