Honda, Ontario and electric vehicle investment
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Honda Canada has announced a two-year pause on its Ontario investments that included retooling an assembly facility and building an EV plant.
Honda said its plan to build an EV supply chain in Alliston, Ont. — which was first announced in April 2024 — would be paused for about two years, due to uncertainty caused by tariffs.
Japanese auto giant Honda has pumped the brakes on its $15 billion plan to build an electric vehicle supply chain in Canada, blaming "changing market conditions” for a decision that
Honda is postponing its $10.7 billion expansion in Ontario to make EVs and EV components for two years. The brand cites reduced profits from U.S. tariffs and softer-than-expected demand for EVs in the U.S. and Canada.
Research from Canada's parliamentary budget watchdog indicates that manufacturers, between 2020 and 2024, unveiled plans to invest roughly $33 billion in EV and related supply-chain production. The Canadian government pledged $22 billion in financing and tax breaks to lure those companies.