Honda Delays $15B Ontario EV Project, Cites Weak Demand

Honda Canada is postponing its $15 billion electric vehicle project in Ontario for approximately two years, pointing to weak EV demand and market uncertainty caused by US tariffs.

The project, announced in April 2024, would have included a retooled assembly plant, an electric vehicle battery plant, and two battery parts facilities throughout Ontario.

Honda Canada spokesman Ken Chiu said Tuesday the decision “has no impact on current employment or production levels” at the company’s Alliston plant. The announcement comes as Ontario’s automotive industry faces thousands of layoffs while US President Donald Trump’s 25% tariffs on foreign-made vehicles take effect.

The project was expected to create 1,000 new jobs while maintaining the existing 4,200 positions at the assembly plant. The facility was projected to produce up to 240,000 vehicles annually by 2028 when fully operational.

Ontario Premier Doug Ford remains optimistic about Honda’s future plans. “They’ve promised us they’re going to continue on with their expansion,” Ford said at a pre-budget announcement in Pickering. He added his government would hold automakers “accountable” for investments backed by public funds.

Industry experts cite multiple factors behind the postponement. Flavio Volpe, head of the Automotive Parts Manufacturers’ Association, said US tariff actions “continue to be felt by everyone, Honda included.”

David Adams of Global Automakers of Canada noted slower-than-expected consumer adoption of electric vehicles also influenced the decision.

Western University professor Gal Raz attributed the delay to both tariffs and consumer hesitation, saying governments have focused on production investments without adequately addressing concerns about high costs and limited charging infrastructure.

The federal government had committed roughly $2.5 billion in tax credits, with Ontario pledging a matching amount in support for the project that was to receive backing from both governments.



Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Tariffs Spark New Race for Critical Metals | Rob McEwen

Antimony Resources: The Bald Hill Project

They Laughed at $3,000 Gold, Now We’re Headed for $4,000! | Sean Roosen – Osisko Development Corp.

Recommended

Steadright Begins Preliminary Economic Assessment On TitanBeach Project

Three Miners Trapped Underground At Newmont’s Red Chris Mine

Related News

Rolls-Royce Unveils First All-Electric ‘Super Coupe’

British luxury automaker Rolls-Royce has announced the first entry from its electric vehicle lineup, the...

Wednesday, October 19, 2022, 10:37:33 AM

Giyani Metals: Are Unexplained Management Resignations A Red Flag?

Two of the four top executives at Giyani Metals Corp. (TSXV: EMM), a developer of...

Sunday, November 29, 2020, 01:37:00 PM

7-Eleven Plans 500 Additional Electric Vehicle Charging Stations By 2022

Seven & I Holdings Co. (TYO: 3382), which operates 7-Eleven, announced its plans to build...

Wednesday, June 2, 2021, 11:17:00 AM

General Motors Takes Aim At EV Startups With Two New Models

On August 4, General Motors Company (NYSE: GM) reported adjusted 2Q 2021 earnings of US$1.97...

Saturday, August 14, 2021, 09:00:00 AM

Ford to Double Annual Electric F-150 Production as Consumer Demand Skyrockets

Ford (NYSE: F) has decided to boost production of its electric F-150 pickup truck by...

Wednesday, January 5, 2022, 10:22:00 AM