Honda Motor Co is considering developing the next generation of the Civic in the US rather than Japan, a spokesman said, after the last version of the popular sedan was panned by critics.
North America accounts for half of total Civic sales.
The 2012 Civic, Honda's third-best selling model last year after the CR-V and the Accord, was criticized for having an uninspired design and a bumpy ride.
"Localizing Civic development (in the US) is among various factors we are considering. Generally speaking, Honda wants to develop cars locally where we sell them," said Satoshi Takami, a Honda spokesman based in Tokyo.
The Nikkei business daily reported earlier on Monday that Honda would develop both the next generation Civic and Accord sedans in the US. Both are set to go on sale around 2016.
Honda is considering developing the next generation Civic at its Research and Development center in Ohio, Takami said.