Latest news with #BusinessBriefing
Calgary Herald
20-05-2025
- Automotive
- Calgary Herald
Honda reveals delay of $15-billion Canada investment part of shift in EV strategy
Article content Honda Motor Co., Ltd on Tuesday released new details explaining why it is delaying its planned $15 billion investment in a battery and electric vehicle complex in Ontario by around two years. Article content Article content In its 2025 Business Briefing, an annual report outlining its strategy, chief executive Toshihiro Mibe said that Honda was reducing its planned global investment in EVs by 30 per cent — to $67.5 billion (7 trillion yen) from $96.4 billion (10 trillion yen) — over the next roughly half-decade because EV adoption has fallen behind the company's initial projections. Article content Article content As a corollary shift in strategy, the company plans to instead increase its production of hybrid-electric vehicles, a technology that allows consumers the comforts of both internal combustion engines and battery-electric vehicles. Article content Article content 'We are reassessing our EV strategy and road map, including the plans for the product lineup and the timing of relevant investments, including the one to build a comprehensive EV value chain in Canada,' Mibe said according to a transcript of his speech accompanying the Business Briefing. Article content The company said last week that the two-year delay to its planned EV project in Canada is not a prelude to a cancellation. Article content The project was announced in April 2024 with an original timeline to begin production by 2028, and included an EV assembly plant, as well as battery-cell manufacturing and active cathode material plants. A battery recycling operation was also a possibility. Article content Article content The overall project was expected to have eventual production capacity of 240,000 EVs per year, and had attracted federal and provincial government support, such as tax credits, that were expected to defray $5 billion of direct and indirect costs. Article content Mibe said Tuesday that the project in Alliston, Ont. — where Honda has produced vehicles since 1986 — is still key to Honda's electrification plans. Article content Article content 'One of our goals with this project is to take batteries in-house, as the core of electrification technology,' he said. Article content But Mibe added that electrification cannot be Honda's responsibility alone, and must be done in collaboration with other companies and governments of various countries. Article content He added that 'environmental regulations, which had been the premise of widespread adoption of EVs' are being relaxed in both the U.S. and Europe. Article content In the U.S., long the export destination for the majority of Honda vehicles produced in Canada, President Donald Trump has said he wants to roll back the electric vehicle transition by cancelling legislation that provided incentives for companies to build EV supply chains in that country, as well as consumer incentives that offset the cost of purchasing EVs.
Yahoo
20-05-2025
- Automotive
- Yahoo
Honda reveals delay of $15-billion Canada investment part of shift in EV strategy
Honda Motor Co., Ltd on Tuesday released new details explaining why it is delaying its planned $15 billion investment in a battery and electric vehicle complex in Ontario by around two years. In its 2025 Business Briefing, an annual report outlining its strategy, chief executive Toshihiro Mibe said that Honda was reducing its planned global investment in EVs by 30 per cent — to $67.5 billion (7 trillion yen) from $96.4 billion (10 trillion yen) — over the next roughly half-decade because EV adoption has fallen behind the company's initial projections. As a corollary shift in strategy, the company plans to instead increase its production of hybrid-electric vehicles, a technology that allows consumers the comforts of both internal combustion engines and battery-electric vehicles. But that shift means that its comprehensive EV project in Canada, which Mibe said has a 'central focus on batteries' is taking a back seat. 'We are reassessing our EV strategy and road map, including the plans for the product lineup and the timing of relevant investments, including the one to build a comprehensive EV value chain in Canada,' Mibe said according to a transcript of his speech accompanying the Business Briefing. The company said last week that the two-year delay to its planned EV project in Canada is not a prelude to a cancellation. The project was announced in April 2024 with an original timeline to begin production by 2028, and included an EV assembly plant, as well as battery-cell manufacturing and active cathode material plants. A battery recycling operation was also a possibility. The overall project was expected to have eventual production capacity of 240,000 EVs per year, and had attracted federal and provincial government support, such as tax credits, that were expected to defray $5 billion of direct and indirect costs. Mibe said Tuesday that the project in Alliston, Ont. — where Honda has produced vehicles since 1986 — is still key to Honda's electrification plans. 'One of our goals with this project is to take batteries in-house, as the core of electrification technology,' he said. But Mibe added that electrification cannot be Honda's responsibility alone, and must be done in collaboration with other companies and governments of various countries. He added that 'environmental regulations, which had been the premise of widespread adoption of EVs' are being relaxed in both the U.S. and Europe. In the U.S., long the export destination for the majority of Honda vehicles produced in Canada, President Donald Trump has said he wants to roll back the electric vehicle transition by cancelling legislation that provided incentives for companies to build EV supply chains in that country, as well as consumer incentives that offset the cost of purchasing EVs. Honda had set a target that EVs would constitute 30 per cent of its sales by 2030, but Mibe said he no longer believes that is possible. 'Honda will strive to increase total automobile sales volume to above the current level of 3.6 million units, with a hybrid-electric vehicle sales target of 2.2 million units at the core,' the company said. In another shift that could have consequences for the company's Canadian operations, last week, the company said it is realigning its North American manufacturing operations, such that its U.S. facilities producing the CR-V will gear more of their production to the domestic market. Meanwhile, its Canadian operations, which had exported some CR-Vs to the U.S., will take on more responsibility for exporting the model to other markets. In a statement the company said the shift would have a negligible effect on Canadian production, which last year reached 420,000 vehicles — up from 374,000 in 2023. Mibe said Tuesday that tariffs — likely a reference to the 25 per cent tariffs on vehicles exported to the U.S. — are creating a 'challenging profitability situation.' The company also said it is 'strengthening its flexible production system,' so it can produce multiple models at the same facility, and that it is committed to 'local production for local consumption,' or building its products close to the customer. Mibe said Honda currently produces around 60 per cent of the vehicles it sells in the U.S. inside the U.S., but that number could rise to 100 per cent. Honda shifts some production from Japan to U.S. in latest response to tariffs Honda confirms no plans to reduce Canadian auto production amid trade war • Email: gfriedman@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
