Honda Motor Co. of Japan says it will shift production of its Pilot sport utility vehicle and Ridgeline pickup from Alliston, Ont., to Alabama.
At the same time, the automaker will increase production of the Civic at the Ontario plant to meet a growing demand for small cars.
Honda chief executive Takeo Fukui also said yesterday that North American jobs will not be affected by the shift in production.
He also said Honda will create another 2,000 North American jobs when a plant to build Civics opens in Indiana later this year.
A source says General Motors is working on additional measures to deal with a declining U.S. auto market and a shift to fuel efficient vehicles.
Such a move would come on top of thousands of job cuts at GM over the past three years, mainly through buyout and early retirement offers.