Honda Canada said it’s postponing plans for an Electric Vehicle plant in Ontario for at least two years. When the 15-billion-dollar electric vehicle investment project was announced a year ago, it was touted as the biggest automotive investment in Canadian history. It was to include a re-tooled assembly plant, an electric vehicle battery plant, and two essential battery parts facilities north of Toronto. Honda said the EV plant would be operating by 2028.
Now the Japanese automaker is hitting pause, for two years.
Company officials said the hold is over what they call a fluctuating demand for electric vehicles and economic uncertainties related to President Donald Trump’s tariffs on imported vehicles. The director and president of Honda Global says the environment has changed dramatically and requires a more flexible response.
Ontario Premier Doug Ford said he recently received assurances from Honda that the project was still in the works.
“When I talked to Honda, they promised us they’re going to continue on with their expansion and they’re going to keep that facility moving forward,” Ford said.
The Ontario and federal governments each offered two and a half billion dollars in capital and servicing costs to help carry out the project. Ford was asked about that investment and the apparent chill in the EV market.
“We’re going to hold them accountable, each auto manufacturer. Anything that we’ve given them; we’re going to make sure that they're held accountable and that they’re going to continue manufacturing automobiles right here in Ontario,” Ford said.
Honda said profits for its fiscal year ending in March fell almost 25 percent, and it warns that Trump’s tariffs worsen earnings even further through March of next year. According to the company, the pause has no impact on current employment or production at the existing Alliston, Ontario manufacturing facility.
