Honda delays $15-billion EV investment in Ontario (www.cp24.com)

submitted 4 weeks ago by NarrativeBear@lemmy.world to c/canada@lemmy.ca

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Honda says it will be evaluating the project timing amid market changes after it postponed an EV project in Ont. for two years.

Premier Doug Ford says Honda Canada will make good on its promised $15-billion investment to build an EV battery plant and upgraded vehicle assembly facility in Ontario, despite an announcement on Tuesday that it plans to postpone the project by two years.

Honda initially announced plans to expand its footprint in Allison, Ont. back in April 2024, a move that was expected to create 1,000 jobs on top of the existing 2,400 at the current plant.

However, on Tuesday, the company said in a statement that due to a recent slowdown in the EV market, it was postponing the project by approximately two years.

Honda said the decision has “no impact” on the jobs or production at the Alliston plant but that it will continue to evaluate the timing of the forthcoming expansion “as market conditions change.”

Ford was asked about the announcement Tuesday and said Honda has “promised” his government it will continue with its planned growth in Ontario.

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[-] SamuelRJankis@sh.itjust.works 5 points 4 weeks ago

I saw a analysis of these investments a while back and the return on these is extremely low. A lot of the time they don't even go through it just become part of a recycled x created jobs blurb during political campaigns.

Asked what the announcement means for the $2.5 billion the province has offered up for capital and servicing costs to carry out the project, Ford said his government will hold Honda and other carmakers “accountable.”

“Each auto manufacturer, anything that we’ve given them, we’re going to make sure that they’re held accountable and that they continue manufacturing automobiles right here in Ontario,” he said. The federal government also pledged $2.5 billion for the project through tax credits.