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4d ago

Honda Delays $15 Billion Ontario EV Project, Citing Tariffs and Weak Demand

The automaker will reassess the project in two years while shifting some CR-V production to U.S. plants to mitigate tariff impacts.

Workers continue vehicle assembly shortly before the line was shut down for an event at the Honda of Canada Manufacturing Plant 2 in Alliston, Ontario, on April 25, 2024 where it was announced that Japanese automaker Honda will make the largest automotive investment in Canada's history worth Can$15 billion (US$11 billion) electric vehicle investment in Ontario that will see four new manufacturing plants built in the province. (Photo by Peter Power / AFP)
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Overview

  • Honda has postponed its planned $15 billion EV and battery production hub in Alliston, Ontario, for two years due to U.S. tariffs and softer-than-expected EV demand in North America.
  • The automaker will move some CR-V production from its Canadian facility to plants in Ohio or Indiana to reduce tariff-related costs.
  • Canadian and Ontario officials secured commitments from Honda that no current jobs at its Canadian facilities will be lost despite the project’s delay.
  • The postponed project was expected to create 1,000 new jobs and included plans for a 36 GWh battery plant and full EV assembly line.
  • Honda plans to revisit the investment timeline in 2027, depending on market conditions and the future of U.S. tariffs on Canadian-built vehicles.