honda ev ontario

1,000 jobs in Ontario up in the air as Honda postpones $15B EV plant

Honda Canada has announced a two-year pause on its Ontario investments that included retooling an assembly facility and building an electric vehicle (EV) plant.

The company says that the current Honda plant in Alliston, Ontario, won't be affected, but the company will be evaluating the EV market over the next two years to decide what to do.

Beyond the retooling and the EV plant, the automaker was also slated to make two key battery parts facilities in Ontario. This project was expected to create another 1,000 autoworker jobs in the province, bringing Honda's job offerings in Ontario to 4,200. The plant was expected to make 240,000 vehicles per year.

Honda first announced the project in the spring of 2024 and was set to receive $5 billion, split between federal tax credits and support from the Ontario government. A report in the Toronto Star says that the province is still in close contact with Honda and it has reaffirmed its commitment to building in Ontario.

There is also a component of this that is likely working to make a smart choice regarding the Trump tariffs. Honda's profits had stopped growing last year, and it's expecting a $6.1 billion hit from the tariffs through March 2026 since it makes pretty much all of its U.S. cars in Canada or Mexico.

Chief executive Toshihiro Mibe also said Honda is thinking about moving plants to the U.S. in the long term as it reconsiders investment plans.

"Honda promised to continue on with their expansion," said Ontario Premier Doug Ford in a meeting held this morning. Ford also plans to make sure Honda is held accountable for any government funds and incentives it receives. He mentioned that Ontario has a world-class automotive sector as well.

Lead photo by

JHVEPhoto/Shutterstock.com


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