3rd generation Honda Fit/Jazz. Image by EurovisionNim via Wikipedia

According to a Reuters article, Honda Motor Company is mulling a shift of their U.S. bound Fit Honda production from Mexico to Japan citing two reasons – increased sales of SUV’s and the new USMCA (Trump’s NAFTA replacement trade deal).

According to unnamed sources, the increased USMCA requirement for North American content for duty-free market access from a minimum of 62.5% to 75% is one primary reason. The other reason is US consumer demand for SUV’s instead of compact cars and sedans. Shifting Fit production would allow Honda to manufacture additional SUV’s instead.

A final decision likely will not be made until Honda launches the new Fit model in a few years.