Honda Canada’s $15 billion investment in electric vehicle and battery production in Alliston, Ont., is being welcomed as huge news by Canadian automotive industry officials and Honda dealers.
The news, which had already leaked earlier in the week, was formally announced at a press event that was live-streamed on Thursday from the Honda Canada manufacturing plant in Alliston.
After Honda Canada’s announcement, a parade of politicians made their way to the microphone to celebrate the announcement and shed a spotlight on their roles in helping the investment happen with a variety of lobbying, tax incentives, and other efforts.
The event kicked off with comments from Jean Marc Leclerc, President and CEO of Honda Canada. “Today’s announcement is a historic investment by a manufacturer in the Canadian auto industry. It proudly honours the highly skilled associates who have earned a global reputation for manufacturing excellence and represents Honda’s recognition of the long-term attractiveness of the Canadian electric vehicle manufacturing ecosystem,” he said.
Leclerc was followed by Honda’s Global CEO Toshihiro Mibe, who provided a detailed rundown of Honda’s plans. “Honda is making progress in our global initiatives toward the realization of our 2050 carbon neutrality goal,” he said. “With the support of the governments of Canada and Ontario, we will strengthen our EV supply system and capability with an eye toward a future increase in EV demand in North America.”
Honda says it expects EV vehicle production to start in 2028, and the assembly plant will be able to produce 240,000 EVs per year. The battery plant will have a capacity of 36 GWh per year.
An additional 1,000 jobs are expected to be created, which will add to Honda’s current workforce of 4,200.
The politicians, who then followed to offer formal remarks, included Prime Minister Justin Trudeau; Ontario Premier Doug Ford; Deputy Prime Minister and Finance Minister Chrystia Freeland; François-Philippe Champagne, Minister of Innovation, Science and Industry; Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade; Ontario’s Finance Minister, and other local politicians.
“Today’s announcement is a game changer for manufacturing in Canada,” said Trudeau. “Honda’s investment is a vote of confidence in Canada, in Canadian auto workers, and in our manufacturing sector. Together, we’re creating good-paying jobs, growing our economy, and keeping our air clean.”
For his part, Ontario Premier Doug Ford praised Honda and the Honda workers. “Today’s historic $15 billion investment by Honda delivers on our government’s promise to bring back manufacturing as part of our plan to rebuild Ontario’s economy, with thousands of good-paying union jobs and economic benefits for workers and families across the province,” said Ford. “Ontario has what it takes to secure the jobs of the future as the world leader in electric vehicle manufacturing, with better jobs and bigger paychecks for our world-class workers.”
At the end of the press event, reporters asked the government leaders about the details of the billions of dollars in tax incentives offered up to help sweeten the pot to help land the deal.
After the announcement, Canadian auto dealer reached out to auto industry groups and dealers to gather their reaction.
Flavio Volpe, President of the Automotive Parts Manufacturers’ Association, lauded the announcement as the biggest automotive investment in Canadian history, which he said is “an affirmation that the supply chain, workforce, and business climate here is world-class.”
Huw Williams, Director of Public Affairs for the Canadian Automobile Dealers Association, said the news is significant because the CADA has been a longtime member of the federal government and Ontario government’s industry partnership known as the Canadian Automotive Partnership Council. CAPC is dedicated to attracting world-wide investment in the automotive sector to the Canadian marketplace.
“The CADA supported CAPC with our membership and sweat equity because we recognize these kinds of investments in the automotive footprint — whether it be vehicle assembly, parts, the supply chains, new electric vehicle technology — benefits the Canadian economy and the automotive ecospirit in Canada,” said Williams. “That goes all the way from the dealership network to OEMs to supply chains. It’s a win-win for Canadians and the Canadian economy.”
Brian Kingston, President & CEO of the Canadian Vehicle Manufacturers’ Association, said the news is significant because Canada has now secured more than $40 billion in job-creating auto investment, the majority of which is dedicated to EV assembly and the battery supply chain.
“This underlines Canada’s increasingly important role in the once-in-a-generation transformation underway in the auto industry to electrification,” said Kingston.
Richard Davies, who owns Midland Honda, said this will allow Canadian dealers to have greater access to cars because they are built in Canada.
“When we bring them from the U.S. or any offshore places, we don’t get a lot of volume because of the dollar difference and you’re not competitive in the market,” said Davies. “This will give us a very competitive stance for EVs moving forward. It’s a huge investment. My opinion as a dealer is this is a fantastic thing not just for us as Honda, but I think it’s going to produce a lot of jobs.”
UpAuto Dealership Group President Michael Carmichael, whose company owns Hanover Honda, echoed that sentiment.
“I’m thrilled to hear that 4,200 automotive jobs will stay and grow in Alliston,” said Carmichael. “It’s always exciting when one of your key OEMs exhibits a commitment and partnership with our provincial and federal governments to this scale.”
