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Honda shifts CR-V production to Canada as UK focuses on Civic

Honda is reshuffling its global production in a somewhat bizarre way. Under the newly announced plans, the European version of the CR-V will no longer be assembled locally, but the region will become the hub for some Civic production. As part of this new strategy, Honda's Canadian manufacturing operations will become responsible for building the next-gen version of the European CR-V. Once assembled, the popular crossovers will then be exported back across the Atlantic. The investment to make these changes comes from 875 million Canadian dollars ($690 million) already allocated by Honda for expansion there. The current European CR-V (pictured above) is made in Swindon, England, and with that model moving to Canada, the site fulfills the second part of this production shuffle. Honda will invest 200 million pounds ($300 million) there to make the location a global production hub specifically for the next-gen Civic five-door hatchback. The examples made in the UK will be not just for Europe but also will be "exported to key global markets," according to the automaker. Honda now confirms one of those markets to be the US, and a recent rumor suggests the company sending over around 40,000 of them a year. Related Video: HONDA OF CANADA MFG. EXPANDS EXPORT DESTINATIONS WITH EUROPEAN SPEC CR-V ALLISTON, ON (March 30, 2015) – Honda of Canada Mfg. (HCM), a division of Honda Canada Inc., announced today that it will produce the next generation CR-V model for the European market. This will be the first time that HCM will export vehicles to Europe. Today's news follows Honda's recent announcement that it will invest $857M in its Canadian facilities, as it prepares for production as the global lead plant for the next generation Honda Civic, Canada's best-selling passenger car for the past 17 years. "Honda is thrilled to once again have good news for automotive manufacturing in Canada by broadening our production portfolio to include exports to the European market," said Jerry Chenkin, President and CEO of Honda Canada Inc. "This expansion decision was made possible due to our deep, mature, and rich talent pool with nearly 30 years of automotive manufacturing experience. We are so proud that our Canadian associates have the reputation of producing high quality vehicles that will meet the needs of the discerning European customer." The announcement further solidifies Honda's already deep roots and commitment to Canada.

2016 Honda Civic First Drive [w/video]

Before diving deep into the presentation for the 2016 Civic Sedan, Honda reps reminded us that the last generation of the car sold very well, thank you. Launched for the 2012 model year, and conspicuously updated for '13, the ninth-generation of Honda's Everyman Sedan was dinged in the media for its lack of innovative powertrains, a drop in refinement relative to the newest competitors, and generally staying the course instead of blazing a trail. That Civic still sold hundreds of thousands of copies. But at the presser for this new car, the sense of relief in moving forward, and excitement about the future, was palpable. Striking up the band and fawning over a new car is the job of Honda's staff, of course, but after driving the '16 Civic for myself, it was clear why the gushing seemed so genuine. This is a new machine, soup to nuts, built to draw crosshairs on the best compact cars in the world. To do that, Honda prioritized overall refinement, the steering experience, a quiet cabin, and high-speed stability as areas in which the tenth-gen car must excel. Those are new areas; the company accepts that things like excellent fuel economy and safety are elemental parts of any Civic by now. Having driven the current version of most every competitor, I set out to see if Honda could make good on that lofty and diverse set of goals. View 40 Photos Honda prioritized excellence in overall refinement, the steering experience, a quiet cabin, and high-speed stability. The new Civic powertrain lineup gives the model an immediate leg up. For 2016, Honda is bringing two new four-cylinder engines to the game: a naturally aspirated 2.0-liter, and a turbocharged 1.5-liter. I got a small sample of the 2.0L engine – it's generally up to the task of carrying Civic sales in bulk – but I spent most of my day with the more exciting 1.5T. (That's mostly what Honda brought along; the engineers are clearly proud of this motor.) The top three trim levels will include the 174-horsepower, 162-pound-feet turbo engine, connected to a continuously variable transmission. The added power makes sense for the more expensive versions of this car, as the easy acceleration it offers is a real luxury. Most drivers will appreciate that there's less "turbo-y" feeling to this engine than just about any I've ever experienced. Full torque output starts at 1,800 rpm – and sticks there right up to the 5,500-rpm horsepower peak – but there's no drama around the power coming on.

How new car shortages may impact your buying experience

If you want further proof that the auto industry is bouncing back, look no further than the empty lots and forecourts of your local dealership. According to a story by The Wall Street Journal, continued high demand for mainstream cars is overtaxing automakers' ability to produce enough models. Several dealers interviewed for the story are reporting two-week supplies as opposed to the typical two-month allocations.
With sales expected to hit 1.4 million units when August numbers arrive shortly and incentive spending down to its lowest amount since January, these limited supplies are pushing prices even higher. For example, according to the WSJ, the average price of a Ford Fusion is up past $26,000. Unfortunately, it's difficult for manufacturers to increase production quickly. If it invests in its facilities, as many manufacturers have done, it risks wasting cash if growth suddenly slows. At the same time, the momentum gained over the past several years could be short lived if vehicle supplies continue to dwindle. "Manufacturers are in a precarious situation," notes Karl Brauer, a senior director at Kelley Blue Book.
Low interest rates and a wealth of desirable features are also allowing customers to purchase more expensive vehicles while justifying their higher overall price tags, a situation that is compounding supply shortages. Even now, during the annual end-of-summer clearance season, deals on new vehicles are remarkably difficult to come by. According to the report, the Toyota Corolla is in a self-inflicted state of shortage, as Toyota clears out inventory in anticipation of the new 2014 generation arriving in dealers. Ford's supplies should rebound as Fusion production comes on line at its Flat Rock, Michigan factory. The Chevrolet Impala, Honda Odyssey, Civic, and Accord and Subaru Forester are also facing shortages.