Honda Canada has announced its $15-billion electric vehicle (EV) investment project in Ontario will be delayed by at least two years, citing a slowdown in EV demand and rising global trade tensions. The decision impacts plans for a new EV battery plant, a retooled vehicle assembly facility in Alliston, and two additional battery component factories elsewhere in the province.
In a statement on Tuesday, Ken Chiu, spokesperson for Honda Canada, said that the delay does not affect current operations at the company’s existing Alliston assembly plant, which employs approximately 4,200 workers.
“The company will continue to evaluate the timing and project progression as market conditions evolve,” Chiu told the Canadian Press.
Ontario Premier Doug Ford echoed this sentiment, expressing confidence that Honda will follow through with its expansion plans. “When I talked to Honda, they promised us they’re going to continue on with that facility. We’re very confident Ontario will remain a hub for Honda vehicle production,” Ford said on Tuesday. (via CBC)
Originally announced in April 2024, Honda’s investment was expected to bolster Canada’s EV supply chain with the construction of four new manufacturing facilities, including a dedicated EV battery plant near Alliston. The project was expected to create 1,000 new jobs, with production capacity planned at 240,000 EVs per year by 2028.
Both the federal and Ontario governments pledged significant financial support, each offering up to $2.5 billion in tax credits and direct incentives.
Despite the delay, Honda maintains its commitment to electrification. Chief Executive Toshihiro Mibe confirmed the company’s intent to expand its EV portfolio, saying, “Although the automotive industry is in a very difficult situation, we will definitely look for new directions of growth through strategic partnerships.”
