Photo credit: CBC
Honda has indefinitely suspended its plans for a $15 – billion electric vehicle complex in Ontario due to changing business conditions.
CBC reports that the Japanese automaker said last May it was pausing development at the plant, with plans to review where the EV market was at in two years.
The decision to more definitely suspend the plant was first reported last week by Japanese media, but at the time Honda did not confirm the news.
“Based on our revised strategic objectives, we have determined that an indefinite suspension of the value chain project is appropriate at this stage. We will continue reviewing our future procurement and business strategies, while carefully monitoring market conditions,” Honda said in a statement on Thursday.
However, the company says the pause won’t impact current employment or production levels at its Alliston, Ont., manufacturing plant.
The EV plant could have created about 1,000 manufacturing jobs and made 240,000 vehicles a year once it was fully operational by 2028.
TThe project was first announced in April 2024 at an event that included then-prime minister Justin Trudeau and Ontario Premier Doug Ford, both of whom pledged money toward the project. Ottawa and Ontario promised to provide $2.5 billion each for the project.
In the Thursday announcement, Honda said it hasn’t received any of that promised government money.
Greg Layson, digital editor for Automotive News Canada, says many of the vehicles made in Canada end to the US to be sold, so it means that the Trump administration’s pullback on EV incentives hit Honda hard.
