Honda to source hybrid batteries from Toyota in 2025

Honda is set to make significant changes to its operations in 2025, as revealed in leaked plans. The company aims to produce around 400,000 hybrid cars using batteries sourced from Toyota's manufacturing plant in the United States. This move appears to be a strategy to avoid potential tariffs imposed by the Trump administration. The Nikkei reported that Honda is looking for ways to lower tariff risks. Currently, Honda relies on batteries shipped from Japan and China. However, with the looming tariffs, the company is changing its approach. They also plan to manufacture the next generation of their popular Civic hybrid in Indiana, instead of Mexico, starting in May 2028. This decision has received positive feedback from consumers who support the idea of local production to avoid extra costs. With tariffs likely increasing the price of importing car parts, manufacturers are feeling the pressure to adapt quickly. In addition to Honda's plans, General Motors has recently faced its own challenges. The company had to recall over 90,000 vehicles due to a serious transmission issue affecting certain models. The National Highway Traffic Safety Administration warned that this issue could cause tires to lock up, leading to safety concerns. Overall, Honda's new battery strategy is part of a broader effort by automakers to navigate the changing trade environment while keeping costs down for consumers.