Honda (TYO:7267) may scrap plans for an eighth assembly facility in North America unless the USMCA trade agreement is renewed, Reuters reported Wednesday, citing Executive Vice President Noriya Kaihara.
With existing factories nearing maximum output, the company sees the need for additional capacity, but future investment depends on the trade deal's survival, the report said.
Kaihara noted that a final decision must be made within one to two years, with operations ideally starting around 2030, though the absence of a USMCA extension could force a strategic shift, the report added.
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