Honda Canada will inject $1.4 billion to retool its Ontario plants
In its plan to electrify its entire product line by 2040 for North America, Honda of Canada Mfg. (HCM) will invest $1.4 billion to retool its plants in Alliston, Ontario, to manufacture hybrid vehicles. The manufacturer should provide more details at a press conference to be held this Wednesday on the site. The federal and Ontario governments will also get involved. Each will inject $131.6 million into the project.
Last January, Jean Marc Leclerc, CEO of Honda Canada announced the start of mass production of CR-V hybrids for the 2023 model year on Canadian soil this summer but no definitive date had been set. The CEO also said the addition of hybrid vehicle manufacturing was in response to demand that the company said would increase “quite drastically” over the next few years.
In addition to being a significant victory for Ontario’s automotive industry, the announcement aligns with Phase 2 of the Doug Ford government’s Driving Prosperity Strategy initiated in 2019. Anchored in the goal of maintaining and growing the Ontario’s auto industry by building at least 400,000 electric and hybrid vehicles by 2030, it aims to create a national battery ecosystem to make the province a center of automotive innovation in North America.
Canadian industry scalded
The rise of US protectionism, sparked by US President Joe Biden’s desire to bring auto jobs back to the United States with the Build Back Better Act, has bothered builders and politicians in Ontario. However, the bill was not passed.
To strengthen its foundations, the Ford government has therefore emphasized the importance of ensuring that its province remains a key player in the automotive industry throughout its shift towards electrification. This includes promoting an electric battery factory and showcasing Northern Ontario as a safe, secure and environmentally friendly source of raw materials, including minerals and elements needed to produce electric batteries.
CR-V and Civic
Honda’s site in Alliston, a town about 90 km northwest of Toronto, covers 370,000 square meters (four million square feet) and includes three plants that employ 4,200 workers. Since 2012, the petrol variant of the CR-V has been assembled in plant 2, while in the neighboring plant 1 the assembly of the Honda Civic in sedan version is carried out and the third manufactures four-cylinder engines that equip both models.
Alliston is the first plant operated by a Japanese automaker on Canadian soil. Honda has been building its Civic sedan there for 33 years, longer than any other Honda plant in the world that currently produces Civics.
