Updated May 13, 2025 @ 4:12pm
The mayor of an Ontario municipality set to be the home for Honda's now-postponed $15-billion electric-vehicle project said Tuesday he is not giving up hope on the plant.
New Tecumseth Mayor Richard Norcross said he is disappointed with Honda's decision but he will continue to advocate for the project, which was expected to create about a thousand jobs.
"I'm hoping we can help," he said in an interview.
"We're gonna do everything we can to help, and we will lobby where we have to lobby, and we will do what we can do to keep the plant going forward."
Honda said it is delaying its scale-up in the community of Alliston, which includes a battery plant and retooled vehicle assembly line, for about two years as it monitors market conditions.
It's the biggest project delay so far in Canada blamed on a weakened outlook for electric-vehicle sales, and it comes as the company expects a drop in profits because of U.S. tariffs.
Norcross said his municipality has been working with Honda, the Ontario government and the federal government to push the new plant project forward.
"Honda has been a fabulous partner ... for over 40 years, and we have a great relationship and they've been an excellent corporate supporter," he said.
"We all have been working collaboratively and collectively together to make sure we push this project as quick as we could, but ... we are thrilled though that they are keeping their existing operations and the existing plant running and keeping the employment going."
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Unifor, which does not represent the Honda workers at Alliston but represents workers in the supply chain, said it is deeply concerned about potential job losses in the sector.
“Trump’s rollback of EV policies and his punishing tariffs on Canadian-made vehicles are killing jobs week after week and threatening the future of our industry,” said Unifor national president Lana Payne.
“This isn’t about fair trade – it’s economic sabotage. The U.S. policy shifts are designed to bleed Canadian operations and push production south of the border. Workers, families, and entire communities are paying the price.”
Ontario Premier Doug Ford said Honda assured him the company remains committed to the project.
"I've talked to Honda, they've promised us they're going to continue on with their expansion," said Ford at an event in Pickering.
He said he is confident that Prime Minister Mark Carney can reach a trade deal with Trump that will lead to a mutually rewarding relationship when it comes to the auto industry.
NDP Leader Marit Stiles said Ford should be doing more to create EV demand within Ontario such as introducing rebates and installing more chargers.
But she said he should also be doing more to ensure that industries such as the electric-vehicle sector don’t pull up stakes.
“Where is Captain Canada?” Stiles said, referencing Ford’s anti-Trump messaging before and during the provincial election.
“Has he already hung up his cape? Is the fight already over?”
Liberal Leader Bonnie Crombie said Ford may have focused too much on building up an electric-vehicle supply chain in Ontario, to the exclusion of other industries.
“Once you put all your eggs in one basket and then the market slumps, where are your protections for jobs and for growth?” she said.
“This is a large concern now that Honda is pausing this investment. It is a pause for 1,000 jobs that could have been created.”
— With files from Allison Jones
This report by The Canadian Press was first published May 13, 2025.
