19-05-2025
Honda Still Committed to EV Investments in Canada After Delaying $15 Billion Project: Industry Minister
Industry Minister
Mélanie
Joly says
Honda Canada's CEO assured her that no Canadian jobs will be lost or modified, despite the company delaying $15 billion in electric vehicle (EV) investments in the country.
Joly said in a statement
'He also confirmed that Honda is still fully committed to major EV investments right here in Canada, and we'll work together to make that happen,' she added.
Honda CEO
Toshihiro Mibe
announced on
May 13 that the company would be forced to
Honda's Canadian projects include an EV manufacturing plant and a battery manufacturing facility located in Alliston, Ont. Construction
had
started
on the factory last fall and was
set
to begin production in 2028, at which point it would produce an estimated 240,000 EVs annually.
Honda had also begun work on a separator factory in Port Colborne, Ont., set to begin production in 2027, as well as a cathode active material plant and precursor cathode active material factory at another Ontario location in partnership with Posco Chemicals.
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Both the federal government and the province committed to a $2.5 billion investment in the Japanese automotive manufacturer's Ontario supply chain.
Honda Global said its profit for the latest financial year ending March 31 had fallen 24.5 percent from the year prior, and that U.S. President Donald Trump's tariffs would further impact its earnings. The president has imposed 25 percent tariffs on automobiles exported from Canada and Mexico, and Canada has put reciprocal tariffs on U.S. vehicles. The tariffs apply to vehicles that are not compliant with the North American free trade deal.
Honda Canada previously said on April 15 that it was not considering changes to its manufacturing in Canada 'at this time' and that its factory in Alliston would operate at full capacity 'for the foreseeable future.' The company added that the Alliston facility was the second-largest auto manufacturer in Canada by volume in 2024. It said that thanks to domestic sales being up 9 percent in the first quarter of 2025, 'Canadian production will remain at full capacity.'
The federal government announced
that it would allow automakers
to
Ontario Premier Doug Ford pledged on May 13 to hold 'accountable' auto companies that have received government funding but abandon plans to invest in and employ workers in Canada.
'We're going to make sure that they're held accountable and they continue manufacturing automobiles right here in Ontario,' Ford said, adding that Honda had 'promised us they're going to continue on with their expansion.'
