Honda indefinitely suspends $15B EV plant in Ontario
Nikkei said the automaker may delay the project as weaker U.S. demand and policy uncertainty push it to prioritize hybrids.
- On Thursday, Honda Canada indefinitely suspended plans for its $11 billion electric vehicle plant in Alliston, Ont., citing evolving business conditions and shifting customer demand.
- President Donald Trump's administration pulled back on EV incentives and imposed tariffs on imported autos lowered to 15 per cent from 25 per cent, while Honda cited declining EV demand from U.S. regulatory rollbacks.
- Two years ago, then-prime minister Justin Trudeau and Ontario Premier Doug Ford announced government support totaling around $2.5 billion each from Ottawa and Ontario, though Honda is now shifting its North American focus toward hybrids.
- Honda confirmed the suspension does not impact existing manufacturing jobs in Alliston, while Industry Minister Melanie Joly's office said last week it remained in "regular contact" with the company.
- Although the project received funding commitments from governments, no money has been transferred to Honda, reflecting broader challenges as automakers balance short-term caution against long-term strategic commitments.
34 Articles
34 Articles
Toronto, Canada, May 14 (EFE).- Honda announced Thursday the indefinite suspension of its project to build a complex for the manufacture of electric vehicles in Canada, an investment of about 15 billion Canadian dollars (11 billion US dollars), for "the evolution of business conditions." The company stated in a statement that the decision responds to "the evolution of business conditions", a change in its external resource strategy and changes i…
Her electric vehicle complex project in Ontario is indefinitely suspended.
Honda 'indefinitely' suspends $15b Canada EV supply-chain plan
Honda's decision to halt a cornerstone project in Canada's embattled EV strategy came as the Japanese automaker scrapped a global long-term EV sales target on Thursday, and took US$9 billion in costs to restructure its electric vehicle business.
Coverage Details
Bias Distribution
- 65% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
