It’s deja vu all over again.Japanese media is reporting that its flagship automaker, Honda Motor Co., is in talks with the Canadian government to build an $18 billion electric vehicle and battery plant in Canada.According to Nikkei Asia, Honda is looking at several sites near its existing plant in Alliston, ON with a final decision expected by early next year. Honda in 2022 announced that it would be spending $1.4 billion to upgrade the Alliston plant to manufacture its popular CR-V hybrid crossover.The Nikkei report suggested the reason Honda is considering Canada is an ‘abundance’ of renewable energy and the fact the federal government in December mandated all passenger vehicle sales in the country be electric by 2035..To date, the governments of Canada, Quebec and Ontario have ponied up a combined $37.7 billion to support EV battery manufacturing plants by Northvolt, Volkswagen and Stellantis through 2033Parliamentary Budget Office.A Honda Canada spokesman declined to confirm the reports other than to tell the Canadian Press the company is looking at multiple options to ramp up EV production to meet the new mandates."In order to achieve our 2040 electrification target of 100% electrified vehicles, we are considering various options to increase local production capacity, however we have nothing further to share at this time," spokesman John Bordignon said in an email.Likewise, federal officials declined to comment on the reports other than to note “Canada's growing reputation as a green supplier of choice and global EV leader."Not to mention subsidies.To date, the governments of Canada, Quebec and Ontario have ponied up a combined $37.7 billion to support EV battery manufacturing plants by Northvolt, Volkswagen and Stellantis through 2033, a number the Parliamentary Budget Office says could easily top $50 billion.Honda was reportedly considering retooling an existing production plant in Ohio but chose Canada instead.In a statement, Industry Minister François-Philippe Champagne would not confirm whether his department is engaged in talks with Honda but credited his government’s policies for prompting global giants such as Honda to look north of the US border for investment plans."Reports about Honda looking to make a significant investment in Canada speaks to the quality of workforce and the strength of our industry," he said.
It’s deja vu all over again.Japanese media is reporting that its flagship automaker, Honda Motor Co., is in talks with the Canadian government to build an $18 billion electric vehicle and battery plant in Canada.According to Nikkei Asia, Honda is looking at several sites near its existing plant in Alliston, ON with a final decision expected by early next year. Honda in 2022 announced that it would be spending $1.4 billion to upgrade the Alliston plant to manufacture its popular CR-V hybrid crossover.The Nikkei report suggested the reason Honda is considering Canada is an ‘abundance’ of renewable energy and the fact the federal government in December mandated all passenger vehicle sales in the country be electric by 2035..To date, the governments of Canada, Quebec and Ontario have ponied up a combined $37.7 billion to support EV battery manufacturing plants by Northvolt, Volkswagen and Stellantis through 2033Parliamentary Budget Office.A Honda Canada spokesman declined to confirm the reports other than to tell the Canadian Press the company is looking at multiple options to ramp up EV production to meet the new mandates."In order to achieve our 2040 electrification target of 100% electrified vehicles, we are considering various options to increase local production capacity, however we have nothing further to share at this time," spokesman John Bordignon said in an email.Likewise, federal officials declined to comment on the reports other than to note “Canada's growing reputation as a green supplier of choice and global EV leader."Not to mention subsidies.To date, the governments of Canada, Quebec and Ontario have ponied up a combined $37.7 billion to support EV battery manufacturing plants by Northvolt, Volkswagen and Stellantis through 2033, a number the Parliamentary Budget Office says could easily top $50 billion.Honda was reportedly considering retooling an existing production plant in Ohio but chose Canada instead.In a statement, Industry Minister François-Philippe Champagne would not confirm whether his department is engaged in talks with Honda but credited his government’s policies for prompting global giants such as Honda to look north of the US border for investment plans."Reports about Honda looking to make a significant investment in Canada speaks to the quality of workforce and the strength of our industry," he said.
