2 ms·

Honda has been working on moving much of it's supply chain to the US for a long time - they have multiple factories across Ohio and Alabama. In 2023, they anno

Honda has been working on moving much of it's supply chain to the US for a long time - they have multiple factories across Ohio and Alabama. In 2023, they announced that they were moving all Honda Accord manufacturing to the US [0], and their prices haven't changed significantly either ($27,615 in 2022 to $28,295 in 2025 compared to median household incomes rising from $74,755 in 2022 to $77,719 in 2023 - 2024 and 2025 numbers aren't out yet). Most base model products won't see significant prices changes due to price elasticity of demand and better in built margins, but mid-upper tier products will see prices soar because the customer base targeted with those products tend to have a greater tolerance to price increases. The biggest pain will be bore by dealerships, as manufacturers finance cars to them at a wholesale rate, and the dealers set the final list price. As such, they will now have to either reduce their margins or see their local demand leave. [0] - https://www.wdrb.com/news/honda-decides-to-move-all-accord-production-to-indiana-manufacturing-plant/article_89d72f98-c356-11ed-b937-e360bf5f6e81.html https://www.wdrb.com/news/honda-decides-to-move-all-accord-p...

delfinom 2y ago
I ponder if it's really because sedan sales have been shrinking YoY to this day and the volume has gotten small enough to cram into a existing factory. Based on some data here https://carfigures.com/us-market-brand/honda/accord https://carfigures.com/us-market-brand/honda/accord (which does come from other sources, this was just the basic tablation I could find) the accord sale numbers are half of their peak only a 6 years ago
- alephnerd 2y ago
  > I ponder if it's really because sedan sales have been shrinking Nope. It's part of Honda's $4-5 billion US expansion as part of their EV and Hybrid car drive [0][1] which also expanded production output. They're moving their cars to a hybrid and electric first model similar to what Toyota began 4-5 years ago. The Biden era IRA subsidizes were the carrot to help restart domestic automotive investments, and the tariffs shock is the stick to force them to capitalize on those instead of trying to co-mingle parts from other non-NAM locations for better margins. [0] - https://alabamanewscenter.com/2022/10/13/what-does-hondas-4-4-billion-ev-expansion-in-ohio-mean-for-alabama/ https://alabamanewscenter.com/2022/10/13/what-does-hondas-4-... [1] - https://www.cnbc.com/amp/2025/02/02/hondas-new-ev-production-revolution-begins-with-1-billion-in-ohio.html https://www.cnbc.com/amp/2025/02/02/hondas-new-ev-production...

delfinom 2y ago

I ponder if it's really because sedan sales have been shrinking YoY to this day and the volume has gotten small enough to cram into a existing factory. Based on some data here https://carfigures.com/us-market-brand/honda/accord https://carfigures.com/us-market-brand/honda/accord (which does come from other sources, this was just the basic tablation I could find) the accord sale numbers are half of their peak only a 6 years ago

alephnerd 2y ago
> I ponder if it's really because sedan sales have been shrinking Nope. It's part of Honda's $4-5 billion US expansion as part of their EV and Hybrid car drive [0][1] which also expanded production output. They're moving their cars to a hybrid and electric first model similar to what Toyota began 4-5 years ago. The Biden era IRA subsidizes were the carrot to help restart domestic automotive investments, and the tariffs shock is the stick to force them to capitalize on those instead of trying to co-mingle parts from other non-NAM locations for better margins. [0] - https://alabamanewscenter.com/2022/10/13/what-does-hondas-4-4-billion-ev-expansion-in-ohio-mean-for-alabama/ https://alabamanewscenter.com/2022/10/13/what-does-hondas-4-... [1] - https://www.cnbc.com/amp/2025/02/02/hondas-new-ev-production-revolution-begins-with-1-billion-in-ohio.html https://www.cnbc.com/amp/2025/02/02/hondas-new-ev-production...