Honda Canada is postponing a $15-billion electric vehicle investment project in Ontario, including a proposed EV battery plant and retooled vehicle assembly facility.
Honda Canada spokesman Ken Chiu said due to the recent slowdown in the EV market, Honda has announced an approximate two-year postponement of the comprehensive value chain investment project in Canada.
"The company will continue to evaluate the timing and project progression as market conditions change," Chiu said in a statement Tuesday.
The decision has no impact on current employment at the Honda manufacturing plant in Alliston, Ont., he added.
Barrie's News Delivered To Your Inbox
By submitting this form, you are consenting to receive marketing emails from: Central Ontario Broadcasting, 431 Huronia Rd, Barrie, Ontario, CA, https://www.cobroadcasting.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact
Honda's EV project in Canada includes a retooled assembly plant, an electric vehicle battery plant in close proximity, as well as two key battery parts facilities located elsewhere in Ontario.
The project was expected to see the two main plants create 1,000 jobs on top of retaining the existing 4,200 jobs at the assembly plant.
Under the original plan, the plant was set to produce up to 240,000 vehicles per year when fully operational in 2028.
The project was first announced in April 2024 at an event that included then-prime minister Justin Trudeau and Ontario Premier Doug Ford and was to receive support from the federal and Ontario governments.
Ottawa was set to give the Japanese automaker around $2.5 billion through tax credits, while Ontario committed to provide up to $2.5 billion in support directly and indirectly.
A spokesperson for Ontario Economic Development Minister Vic Fedeli said Tuesday that the province remains in close contact with Honda, which has reaffirmed its commitment to its operations and planned expansion in Ontario.
"Our government will continue to fight every single day to protect the progress we have made in our auto-manufacturing sector and secure good-paying jobs and support for workers and their families," Fedeli spokesperson Jennifer Cunliffe said in a statement.
In reporting its latest financial results Tuesday, Honda Motor Co. said its profit for the financial year through March fell 24.5 per cent from the previous year and warned that U.S. President Donald Trump’s tariffs will worsen its earnings.
The Tokyo-based automaker said its annual profit totalled 835.8 billion yen (US$5.6 billion), down from 1.1 trillion yen in the previous year. Annual sales edged up 6.2 per cent to nearly 21.69 trillion yen (US$147 billion).
Honda executive vice-president Noriya Kaihara acknowledged that Trump’s tariffs would likely hurt, erasing 650 billion yen (US$4.4 billion) from its operating profit for the fiscal year through March 2026. That's mainly because of U.S. tariffs on vehicles from Canada and Mexico. Honda’s vehicle shipments from Japan to the U.S. are negligible.
Officials stressed major uncertainties remain, but said they felt it was important to give a realistic projection, no matter how pessimistic it might be.
Chief executive Toshihiro Mibe said Honda will do its best to minimize the impact from tariffs. In the long term, Honda will transfer auto production to U.S. plants and rethink its investment plans. All decisions will be made “very carefully,” Mibe told reporters.
— With files from The Associated Press
This report by The Canadian Press was first published May 13, 2025.
