It’s Deja vu all over again.That’s because Honda will be the next major automaker to receive billions in handouts from Ottawa to build EVs and batteries in Canada, no less a source than Ontario Premier Doug Ford has confirmed.Although details aren’t yet known, Ford all but confirmed on Monday morning that Honda will receive billions in taxpayer dollars to build an integrated EV supply chain in the province. But speaking at a conference in Toronto, Ford said it will surpass the $7 billion handed to Volkswagen — notwithstanding the $15 billion granted to Stellantis or the $4.6 billion to Northvolt to build similar factories in Ontario and Quebec which the Parliamentary budget office says will eventually cost Canadians more than $50 billion..“It’ll be the largest deal in Canadian history. It’ll be double the size of Volkswagen. So stay tuned,“Ontario Premier Doug Ford.“This week, we’ve landed a new deal. It’ll be the largest deal in Canadian history. It’ll be double the size of Volkswagen. So stay tuned, we’ll be announcing it this week,” he said. Last week’s federal budget included new tax credits for a 10% rebate on capital costs for constructing new buildings to be used for making EV components.That’s on top of other incentives, including a 30% manufacturing credit, as well as any other provincial supports afforded by the Ontario and Quebec governments.Earlier this year, Japanese news outlet Nikkei reported that Honda plans to spend to $18.5-billion in Canada.The Honda deal includes a standalone battery manufacturing car assembly plant, as well as facilities cathode materials and associated components, according to two sources cited by The Globe and Mail. .If so, it would be a major departure for Ottawa which has vowed not to do any more one-off deals with foreign car makers apart from the usual tax credits — such as they are. Earlier this year, Industry Minister Phillipe-Francois Champagne said there would be no more Volkswagen-style handouts amid reports Toyota is also looking for handouts.“There’s only going to be one Volkswagen gigafactory in North America. There’s only going to be one Northvolt factory in North America. Over time, because the ecosystem is getting stronger and stronger with each of these investments, you could transition the type of support you’ve provided more to something akin to a tax credit.”
It’s Deja vu all over again.That’s because Honda will be the next major automaker to receive billions in handouts from Ottawa to build EVs and batteries in Canada, no less a source than Ontario Premier Doug Ford has confirmed.Although details aren’t yet known, Ford all but confirmed on Monday morning that Honda will receive billions in taxpayer dollars to build an integrated EV supply chain in the province. But speaking at a conference in Toronto, Ford said it will surpass the $7 billion handed to Volkswagen — notwithstanding the $15 billion granted to Stellantis or the $4.6 billion to Northvolt to build similar factories in Ontario and Quebec which the Parliamentary budget office says will eventually cost Canadians more than $50 billion..“It’ll be the largest deal in Canadian history. It’ll be double the size of Volkswagen. So stay tuned,“Ontario Premier Doug Ford.“This week, we’ve landed a new deal. It’ll be the largest deal in Canadian history. It’ll be double the size of Volkswagen. So stay tuned, we’ll be announcing it this week,” he said. Last week’s federal budget included new tax credits for a 10% rebate on capital costs for constructing new buildings to be used for making EV components.That’s on top of other incentives, including a 30% manufacturing credit, as well as any other provincial supports afforded by the Ontario and Quebec governments.Earlier this year, Japanese news outlet Nikkei reported that Honda plans to spend to $18.5-billion in Canada.The Honda deal includes a standalone battery manufacturing car assembly plant, as well as facilities cathode materials and associated components, according to two sources cited by The Globe and Mail. .If so, it would be a major departure for Ottawa which has vowed not to do any more one-off deals with foreign car makers apart from the usual tax credits — such as they are. Earlier this year, Industry Minister Phillipe-Francois Champagne said there would be no more Volkswagen-style handouts amid reports Toyota is also looking for handouts.“There’s only going to be one Volkswagen gigafactory in North America. There’s only going to be one Northvolt factory in North America. Over time, because the ecosystem is getting stronger and stronger with each of these investments, you could transition the type of support you’ve provided more to something akin to a tax credit.”
