OTTAWA — Honda Canada has announced it will invest $867 million in its Ontario manufacturing operations, with support from both the federal and provincial governments, as the company pivots its focus to hybrid vehicles.The investment will support over 4,000 workers at Honda's two manufacturing facilities in Alliston, Ont., where the Civics and CR-Vs are built.Honda says it will invest an initial $166M to upgrade and retool the plants to produce its next generation of hybrid-electric and gas vehicles. The work will also see engine manufacturing coming back to Alliston.The $ 166 M is part of the wider $867m commitment, which includes future investment and associated costs.Ottawa is putting in $313 M, and the Ontario government (Premier Doug Ford's government) is putting in another $ 156 M."This renewed investment underlines Canada's critical role in Honda's North American growth and its hybrid electric vehicle strategy," said Honda Canada President and CEO Dave Jamieson in a statement..Jamieson said the investment would help keep the company's Canadian operations competitive and would support the workers and local suppliers.The announcement comes six months after Honda indefinitely shelved its $ 15 bn EV complex in Ontario, citing weak demand for EVS.That project (announced in 2024) was expected to create another 1,000 manufacturing jobs in Alliston.Honda is now expanding its hybrid production across North America. In May, they announced plans to introduce 15 new Honda and Acura hybrid models worldwide by 2030, with North America being the primary market for many of them.Industry Minister Mélanie Joly welcomed the investment, noting it would help keep Canada in the game in the auto industry."Canada is an auto nation, now and into the future," said Joly."This investment will strengthen our automotive supply chains, support thousands of well-paid jobs in Ontario and across the country, and help build a strong Canadian auto sector in which our workers will be building the cars of the future.".Ford said the provincial contribution was part of its effort to shield Ontario's auto industry from U.S. tariffs."Ontario's $156M investment in Honda will directly support 4,000 workers," said Ford.Honda has been in Alliston since 1986, when it became the first Japanese car manufacturer to have a factory in Canada.The company produced just over 401k vehicles at its Ontario facilities last year, making it Canada's second-largest volume producer of vehicles in 2025.Honda says it has invested more than $6.5 billion in Canada since establishing its manufacturing operations and buys over $3 billion in goods and services from Canadian suppliers each year.
