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2d ago

Honda Pauses $15 Billion Ontario EV Expansion Over Tariffs and Weak Demand

The automaker cites U.S. trade policies and softening market conditions, delaying its Canadian project for two years while reaffirming its long-term EV commitments.

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Overview

  • Honda has postponed its multibillion-dollar electric vehicle and battery manufacturing expansion in Ontario for two years due to U.S. tariffs and weaker-than-expected EV demand in North America.
  • The delay affects plans to create 1,000 new jobs in Canada but will not result in any immediate job losses at Honda's existing facilities in Alliston, Ontario.
  • To mitigate tariff impacts, Honda is shifting some CR-V production for the U.S. market from Canada to its Ohio plant, aligning with evolving trade and market dynamics.
  • Honda CEO Toshihiro Mibe stated the company will reassess the Ontario project in 2027, depending on market conditions and the status of trade policies.
  • Canadian Industry Minister Mélanie Joly emphasized Honda's continued commitment to EV investments in Canada, pledging government support to ensure the project moves forward.