As my colleague Jesse first reported Tuesday, the automaker formally announced a six-year investment to upgrade both production lines in its Alliston plant (which currently makes gas-engine CR-Vs and Civics) to manufacture hybrid models like the 2023 CR-V Hybrid crossover. The Ontario and federal governments will each chip in $131.6 million toward retooling, job training and R&D. (The Logic)

Talking point: The contract suggests Canada has found a way into new auto manufacturing negotiations, despite the threat of incentives that favour U.S. investments. The vehicles would be hybrid, and Honda has said that it wants to sell only battery-electric vehicles in North America by 2040. Honda Canada CEO Jean Marc Leclerc said this plan is a milestone on the way to that goal. At a press conference, Premier Doug Ford and Prime Minister Justin Trudeau dodged a question about whether Ontario should reinstate its EV rebate for consumers, with Ford instead saying the province’s spending will focus on critical minerals for battery facilities.