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CES-Honda executive cautious about new EV production ahead of Trump presidency
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CES-Honda executive cautious about new EV production ahead of Trump presidency
Jan 7, 2025 4:57 PM

LAS VEGAS, Jan 7 (Reuters) - Honda Motor ( HMC ) will

be cautious about starting production of new electric vehicles

due to uncertainty about President-elect Donald Trump's

industrial policy, a senior executive of the Japanese automaker

said on Tuesday.

The remarks from the second-biggest Japanese carmaker

highlight how global businesses are staying vigilant against the

unpredictable U.S. policies as Trump takes office on Jan. 20.

"Because of Trump's initiatives, we might be very careful

how we would start production" of upcoming electric models,

Honda ( HMC ) Executive Vice President Noriya Kaihara said at the CES

technology conference in Las Vegas.

Honda ( HMC ) will also be cautious about its battery plant plans in

Canada, mindful of government regulations and EV market trends,

Kaihara said.

"Maybe we might have to delay our start of the production of

the EV models somehow," he said.

Earlier at CES, the automaker unveiled prototypes of

upcoming Honda ( HMC ) 0 electric cars, including an SUV model that will

be introduced in the North American market in the first half of

2026.

Honda ( HMC ) 0 models will be equipped with "eyes-off" level

autonomous driving technology and will later be available in

global markets including Japan and Europe, the company said.

Honda ( HMC ) aims to sell only EVs and fuel cell vehicles by 2040,

although it is also upgrading hybrids as a near-term linchpin

for the U.S. market amid a stagnating EV growth.

The comeback of Trump complicates the EV transition plans

and Americas business of Honda ( HMC ), along with other global

carmakers like General Motors ( GM ) and Stellantis ( STLA ).

In November, Honda ( HMC ) Chief Operating Officer Shinji Aoyama

said the automaker may have to think about shifting production

if the U.S. were to impose permanent tariffs on vehicles

imported from Mexico as touted by Trump.

On merger talks with Japan's third-largest carmaker Nissan ( NSANF )

, Kaihara said Nissan ( NSANF ) has "a little bit overcapacity in

North America" and may cut some workforce there, while declining

to comment on discussion details.

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