Honda has decided to produce its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs on one of its top-selling car models, according to three people familiar with the matter.

Honda is looking to move their new Honda Civic Hybrid production to Greensburg, Indiana from Guanajuato, Mexico, Reuters reports. Honda’s Indiana auto plant opened in 2008, producing the Civic and CRV,

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Japanese automaker Honda will move production of one of its hybrid vehicles to Indiana in response to the Trump administration’s proposed tariffs affecting goods from Mexico, according to reports. The next-generation Civic hybrid was set to be produced in Guanajuato,

KEY TAKEAWAYS Honda plans to produce its next Civic hybrid in Indiana rather than Mexico to avoid the impact of possible upcoming tariffs, according to a Reuters report,.According to the report, around 80% of Honda’s production in Mexico goes to the U.

Honda’s flexible manufacturing capabilities are moving into its next generation as well. Though the automaker is prepping for EV production, the remodeling and retooling underway at its Marysville and East Liberty auto plants and the Anna Engine Plant will allow it to build gas, hybrid and electric vehicles all on the same lines.

According to a new report from Reuters, Indiana could see an increase in auto production in the future. The news agency reports that Honda has decided to produce its newest Civic Hybrid in the Hoosier state. Reuters says the company is shifting production from Mexico to avoid potential tariffs.

Honda might move the production of the next-generation Civic to its facility in Greensburg, Indiana, following Trump administration's tariffs proposal