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The Japanese automaker has reportedly decided to halt its $15-billion project to build an electric vehicle factory and accompanying battery plant in Ontario as Honda shifts its focus to plug-in hybrids amid sluggish U.S. demand for zero-emission vehicles. (Nikkei Asia)
Talking point: The project would have included expanding and retooling its assembly plant in Alliston, Ont., to produce up to 240,000 EVs per year beginning in 2028. Honda delayed its plan by about two years in May 2025, “due to the current slowdown in EV demand.” Honda Canada said Wednesday it had no comment at this time. “American tariffs and changes to U.S. domestic policies are creating real pressures for automakers,” said Gabrielle Landry, a spokesperson for Industry Minister Mélanie Joly. Global Automakers of Canada, which counts Honda as a member, has previously warned of another pressure point: Ottawa’s decision to open the door to Chinese-made EVs.
Editor’s note: Honda Canada responded after publication, and declined to comment. The story has been updated.
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