Honda confirms plans to boost production in US, Canada after closing UK plant

"We will produce the Civic for North America in North America," Honda's CEO said.

Honda has confirmed the United States and Canada stand to benefit from its decision to close its only factory in Europe and another facility located in Turkey. Its North American plants will help meet demand when the two overseas plants go offline in 2021.

"Given our efforts to optimize production allocation and production capacity on a global scale, we have concluded that we will produce the Civic for North America in North America," Honda CEO Takahiro Hachigo told industry trade journal Automotive News. His comments confirm a rumor that popped up right after Honda announced plans to close its Swindon, England, factory.

Honda currently makes the Civic in Ontario and in Indiana. Hachigo didn't reveal how Honda will split the additional capacity between the two factories.

Hachigo also stressed the decision to close Swindon had nothing to do with Brexit. He pointed to a recent trade deal signed by the European Union and Japan which makes importing Japanese cars into Europe considerably more affordable. Building them locally to skirt tariffs is no longer necessary. But, above all, Hachigo explained Honda waited until late in the 10th-generation Civic's life cycle to announce Swindon's fate.

The current Civic will be made in Swindon until the end of its life cycle. The next-generation model -- which is still a few years away from its unveiling -- will be the model made in America, for America.

We'll learn more about the 11th-generation Civic and Honda's plans for American production in the coming years.