Honda has stalled its $15-billion plan to build four new electric vehicle factories in Ontario for two years but will continue production of Civics and CR-Vs at its giant assembly complex in Alliston, north of Toronto.
Touted as a major addition to Ontario’s manufacturing base when it was announced 13 months ago by the Japanese automaker, Premier Doug Ford and then-prime minister Justin Trudeau, the ambitious EV project hit roadblocks from a slowdown in EV sales and tariffs imposed by U.S. President Donald Trump.
“The company will continue to evaluate the timing and project progression as market conditions change,” Honda Canada spokesperson Ken Chiu said Tuesday.Â
The postponement of the EV plans has “no impact” on other production, he added.
Ford said he had talked to Honda officials about the delayed project that was intended to produce 240,000 vehicles annually and create another 1,000 jobs at Honda in Alliston, where the company now employs 4,200 people. There was to be an EV assembly plant and feeder factories with thousands more spinoff jobs in parts production and construction of the new plants.
“They promised us they’re going to continue on with their expansion,” the premier said in Pickering. “They’re going to keep that facility moving forward, so we’ll just see how that moves forward, but we’re very confident that we’ll continue producing Honda vehicles here in Ontario.
The existing Honda plants in Alliston produce about 400,000 Civics and CR-Vs a year.Â
The Ontario and federal governments were to each pony up $2.5 billion toward the EV project, but provincial officials said none of that money has flowed yet.
In the legislature’s daily question period, New Democrat Leader Marit Stiles accused Ford of shrugging his shoulders at the news.
“This government hasn’t woken up to the reality of what we’re facing today,” Stiles said, calling for a plan to save manufacturing jobs in the face of American tariffs and high unemployment numbers. “Where’s the fight that this government talked about during the election?”Â
The postponement is a “gut punch,” Green Leader Mike Schreiner said as opposition parties blamed Ford’s Progressive Conservative government for axing subsidies for motorists to purchase EVs and for not building up a better charging network, such as requiring EV chargers installed in all new homes.
Liberal Leader Bonnie Crombie questioned whether the Ford government’s heavy bet on EVs with Honda and other automakers was a “risk” given how anticipated demand has not panned out.Â
Ford, who was not in question period, told reporters the government will hold all auto manufacturers given provincial aid to their job-creation promises.
“Each auto manufacturer, anything that we’ve given them, we’re going to make sure that they’re held accountable and they continue manufacturing automobiles,” he said.
The $15 billion Honda EV plan dwarfed the $5 billion Stellantis EV battery plant now operating in Windsor by the parent company of Chrysler, Dodge and Jeep and the $7 billion Volkswagen EV battery plant under construction south of London near St. Thomas. Both plants are in line for billions of dollars in subsidies and tax credits from the federal and Ontario governments.Â
There have been other snags in the move to EVs as sales growth has been slower than expected.
Just over a year ago, Ford said it would delay EV production at its Oakville assembly plant by two years until 2027. That factory was granted up to $295 million in taxpayer support from each of the Ontario and federal governments.
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