Honda Motor could shift production work of its Fit model from Mexico to Japan in the near future, according to a report by Reuters citing anonymous sources based in Tokyo. The Japanese automaker builds the subcompact hatchback for the North American market in Celaya, Guanajuato.

Apparently, two major factors have merged for this decision to be considered: first, the content requirements of the new trade deal between the U.S., Mexico and Canada (USMCA) will make the vehicle less profitable. Second, the trend of U.S. consumers’ preferences shifting towards pickup trucks and SUVs, which have led to a 17.8% drop in sales of the Honda Fit to 32,934 vehicles in the first nine months of 2018.

Looking for an official stance on the matter, Reuters sought for a comment from Honda’s communication department where a spokesman responded that the company had no made a final decision.

It’s worth noting that several news outlets have reported that the next generation of the Honda Fit is currently under development, hence it’s likely that Honda will choose whether to build or not the unit in Celaya when the definitive version is ready to go into production.

MexicoNow

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