Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
Shift newsletter

Is the EV boom ‘too big to fail’?

The EV transition must be executed carefully, says Honda Canada’s CEO—because the alternative is “disastrous.”

In an interview with The Logic, Jean Marc Leclerc said Canada has bet a lot on that transition: lavish government spending, hopes for economic growth and plans to meet climate targets. In a speech last week at the Electric Autonomy conference in Toronto, he suggested that given such high economic and environmental stakes, the auto industry’s quest for an electrified future was becoming “too big to fail.” 

Shift newsletter

Is the EV boom ‘too big to fail’?

What’s worrying the CEO of Honda Canada 

By Anita Balakrishnan
An autoworker in a white overcoat, green hat, face mask and protective glasses works on a partially constructed vehicle on a Honda assembly line.
An autoworker stands on the production line for the Honda CRV, at a Honda plant in Alliston, Ont., in March 2022. Photo: The Canadian Press/Chris Young
Feb 16, 2023
A A
A Small A Medium A Large
Share

Share

The EV transition must be executed carefully, says Honda Canada’s CEO—because the alternative is “disastrous.”

In an interview with The Logic, Jean Marc Leclerc said Canada has bet a lot on that transition: lavish government spending, hopes for economic growth and plans to meet climate targets. In a speech last week at the Electric Autonomy conference in Toronto, he suggested that given such high economic and environmental stakes, the auto industry’s quest for an electrified future was becoming “too big to fail.” 

“It’s these massive investments that are happening in a very compressed amount of time,” he told The Logic Tuesday. “Why I said it’s too big to fail is that the right conditions are not in place to move customers as quickly as we’re required to electrification, because of charging infrastructure, because of affordability issues.”  

Leclerc’s comments come as more governments, including the U.S. and Canada, are urging automakers to build and sell fully battery-electric vehicles, rather than their traditional approach of demanding automakers hit emissions-reduction goals. 

Related Articles

Two factory workers stand on either side of the silver-painted body shell of a pickup truck as it creeps down the assembly line.

Economy throws a wrench in the green-jobs machine

By Anita Balakrishnan

The EV price war begins

By Anita Balakrishnan

Leclerc said Honda previously had a plan to meet emissions goals through 2030, in part by focusing on selling more of its made-in-Ontario hybrid vehicles. But companies like Honda and Toyota that have favoured hybrids are now under scrutiny, and the federal government has mandated that the majority of new cars sold by the end of the decade burn no gasoline at all. Global Automakers of Canada, an organization that represents Honda alongside other Asian and European auto brands, has warned the policy may actually keep gas-powered vehicles on the road for longer, because people won’t be able to afford to upgrade to more expensive EVs or won’t have enough access to EV chargers to convince them to switch.

After the federal and Ontario governments each spent $131.6 million last year helping retool Honda’s Ontario plant to build hybrids, neither government has made the hybrid CRV models eligible for any rebate.

Leclerc told The Logic there’s a short-term risk that a run on battery metals drives up the cost of making EVs, making them less affordable for consumers to buy and for automakers to produce. In his speech, he’d warned the lack of incentives and charging infrastructure for consumers and tight supply chain resources for automakers had put them on a “collision course.” 

“Having everybody do the same thing at the same time definitely puts upward pressure on prices,” he told The Logic. “I don’t see the stability, if you will, in those critical minerals and precious metals that we need to build batteries.” 

Leclerc said he remains confident the government will do what it takes to make sure the Ontario Honda plant has a secure future despite its current focus on hybrids. 

He also said Canada needs to come up with a response to the U.S. Inflation Reduction Act “as quickly as possible.” 

“We’re saying, ‘Please do not waste any time responding,’” he said. 

Honda’s lobbying records in Ontario show it has been monitoring and consulting on Ontario’s Automated Vehicle Pilot Program, which allows testing of certain self-driving passenger vehicles, commercial vehicles or streetcars. Leclerc said there are aspects of Honda’s autonomous-vehicle strategy that are confidential for now. Honda is interested in exploring more Canadian R&D efforts, so long as they jibe with its Ohio R&D team. 

“As much as I can say, unfortunately … is there’s movement, if you will, to make Ontario or the [Greater Toronto Area] in particular a destination for these types of activities or development in our industry,” he said.

Read Shift—The Logic’s authoritative weekly newsletter on automotive technology industry news—for more; and if you know someone who should be reading it, they can sign up here.

#electric vehicles #Honda #hybrid vehicles #Inflation Reduction Act #The Logic's Shift

Sponsored Content

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa

The real-world economic offshoots of sovereign AI

By Deborah Aarts
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

An autoworker in a white overcoat, green hat, face mask and protective glasses works on a partially constructed vehicle on a Honda assembly line.

Photo: The Canadian Press/Chris Young

Most Popular This Week

News

ApplyBoard was the worst-performing Canadian startup in Fidelity’s portfolio in 2026

By Claire Brownell
An image of Finance Minister François-Philippe Champagne wearing a dark suit and tie, gesturing while he speaks into a microphone. There are three Canadian flags in the background.
News

Investors and CEOs are urging Ottawa to expand tax breaks for entrepreneurs

By Catherine McIntyre
News

Cohere opens up its AI platform to give businesses more control

By Murad Hemmadi
An image of Mark Carney standing in front of a red podium with the words "AI for All / L'IA pour tous." He is wearing a suit and tie. In the background, people wearing scrubs and white coats are visible.
News

Carney picks big-name researchers and investors for new AI advisory council

By Murad Hemmadi

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

Commentary

Carmichael: Canadian ignorance about India is a strategic weakness

By Kevin Carmichael

Briefing

Aritzia shares pop after earnings rise 204%

By Anita Balakrishnan   |   Oct 9, 2026

First Nation in Alberta goes to court over fast-tracked oil pipeline

By Chaimae Chouiekh   |   Oct 9, 2026

Chinese EV maker Geely Auto Group to launch in Canadian market in 2027

By Joanna Smith   |   Oct 9, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

Carney picks big-name researchers and investors for new AI advisory council

By Murad Hemmadi   |   Oct 2, 2026
An image of Mark Carney standing in front of a red podium with the words "AI for All / L'IA pour tous." He is wearing a suit and tie. In the background, people wearing scrubs and white coats are visible.
The Big Read

Cameco’s high-stakes bid to be Canada’s next nuclear champion

By Joanna Smith   |   Sep 23, 2026
A shot looking down the length of a tunnel with conduits along its sides and railroad-style tracks on its floor. There are two workers in the distance wearing hardhats and headlights and walking toward the camera.
News

ApplyBoard was the worst-performing Canadian startup in Fidelity’s portfolio in 2026

By Claire Brownell   |   Oct 6, 2026
News

TD cracks global top 10 for AI again as banks race for returns on investments

By Chaimae Chouiekh   |   Oct 6, 2026
News

Cenovus announces $5.7B takeover of Athabasca, with a nod to Carney’s Mega Deduction

By Meghan Potkins   |   Oct 5, 2026
A view of oil extraction equipment consisting of pipes, catwalks and cylindrical tanks; there are three company representatives in the foreground wearing white hard hats and blue coveralls with yellow reflective striping.
News

Investors and CEOs are urging Ottawa to expand tax breaks for entrepreneurs

By Catherine McIntyre   |   Oct 6, 2026
An image of Finance Minister François-Philippe Champagne wearing a dark suit and tie, gesturing while he speaks into a microphone. There are three Canadian flags in the background.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account