Honda Canada announced Monday it will invest $166 million to upgrade and retool its Alliston, Ont., manufacturing plant, securing more than 4,000 jobs and expanding production of future hybrid-electric vehicles and engines.
Expanding hybrid-electric vehicle production
The announcement comes just days after Honda celebrated its 40th anniversary and is part of a broader $867 million commitment to bolster its North American manufacturing network and meet growing demand for hybrid vehicles.
Honda Canada President and CEO Dave Jamieson said the announcement reinforces the company’s long-standing commitment to Canadian manufacturing.
“For 40 years, Honda associates in Alliston have demonstrated the skill, innovation and commitment that have made our Canadian operations a cornerstone of Honda’s manufacturing network in North America,” said Jamieson.
He added that the investment will help “position the Canadian operations for long-term competitiveness and future opportunities” while benefiting suppliers and the broader economy.
Honda says it is working with the federal and Ontario governments on the project.
$15B electric vehicle plans shelved in May
This announcement comes on the heels of Honda’s decision in May to indefinitely pause its planned $15 billion EV expansion in Alliston.
The move came shortly after the automaker reported a $2.7 billion full year loss, which it attributed largely to the “high costs of developing electric vehicles” and shifting market conditions as U.S. policy moves away from EV incentives.
Instead, Honda said it would focus more heavily on hybrid vehicles, which continue to see stronger consumer demand than fully electric models.
New $3 billion U.S. auto plant in Ohio
The Canadian announcement comes with a major expansion of Honda’s operations in the United States.
Honda also announced Monday that it plans to invest $3 billion in a new automotive manufacturing plant in Ohio, creating more than 2,000 jobs and increasing its U.S. auto production capacity to roughly 1.3 million vehicles annually.
The new Ohio facility will be built between Honda’s existing East Liberty and Marysville assembly plants. It is expected to begin production in 2029, pending final government approvals.
According to Honda, the facility will be able to manufacture nearly 240,000 vehicles annually.
The plant will be designed to produce hybrid-electric, gasoline-powered and battery-electric vehicles, giving greater flexibility to respond to changing market needs.
In May, Honda announced plans to launch 15 new Honda and Acura hybrid models globally by 2030, with North America as a key market.
The company says investments in manufacturing facilities across Canada, Ohio, Alabama and Georgia will help support production of these vehicles in North America.
Together, the projects will boost Honda’s U.S. production capacity to nearly 1.3 million vehicles annually and raise its North American capacity to roughly 1.9 million, according to the automaker.
