Honda Investing Some $1.38 billion in Ontario Manufacturing Plants for Electrified Future


Honda of Canada Mfg. (HCM) announced that it will invest $1.38 billion over six years to upgrade its Alliston, Ontario manufacturing plants. The plants will implement new and innovative technologies, processes, supply chain and vehicle research and development programs, as a part of Honda’s goal to reach zero emissions by 2040.

The announcement marks an important step in the company’s pathway to electrification and will see HCM become the North America Lead Plant for the all-new 2023 CR-V Hybrid crossover. This will bring Honda’s total Canadian facilities investments to more than $6.5 billion since 1986, when Honda became the first Japanese auto maker to build a Canadian manufacturing facility.

HCM is partnering with both the governments of Canada and Ontario, with each level of government providing an equal and conditional contribution of $131.6 million.

“This represents an important milestone for Honda as we move forward in our ambitious vision to make battery electric vehicles represent 100 per cent of our North America vehicle sales by 2040,” said Jean Marc Leclerc, president and CEO of Honda Canada. “HCM is home to a team of remarkably talented associates who build some of Honda’s most popular and fuel-efficient products. This investment not only ensures our product and manufacturing competitiveness within Ontario, Canada and abroad, but also significantly bolsters our ongoing efforts to reduce greenhouse gas emissions to help Canada attain its overall climate targets.”

By retooling both production lines at HCM, Honda will secure thousands of jobs in Alliston and throughout Honda’s extensive Canadian supplier network. Financial commitments will also see a range of enhanced job training initiatives and expanded inclusive hiring practices, as well as research and development programs that further reduce environmental impacts of vehicle production. These investments will have a lasting and profound benefit for the Honda Canada dealer network, partnering suppliers, and the overall Canadian auto industry.

“Ontario is proud to support Honda’s major investment to retool its Alliston plant to manufacture the company’s next-generation models, including hybrid versions. By reducing the cost of doing business in Ontario by nearly $7 billion annually, our government has created the economic conditions necessary to attract yet another important investment that further positions Ontario as a North American leader in developing and building the car of the future,” said Vic Fedeli, Ontario Minister of Economic Development, Job Creation and Trade.

“With today’s investment, our government is securing thousands of good, well-paying jobs in Ontario’s auto sector. This investment will help support Honda as they transition to producing the cars Canadians want; low and zero-emission vehicles. Investments like these show that our government is here to support Canada’s auto sector today and to ensure that the right skills, tools and workforce are in place so we can keep producing the cars of the future here in Canada for decades to come,” added The Hon. François-Philippe Champagne, Minister of Innovation, Science and Industry.