Honda Canada has announced a two-year postponement of its \$15 billion electric vehicle (EV) supply chain project in Alliston, Ontario, originally planned to include a new EV battery plant and a retooled vehicle assembly facility. The delay comes amid a slowdown in the EV market, according to Honda Canada spokesperson Ken Chiu. Current employment and production at the Alliston plant remain unaffected.
The project, first announced in April 2024 with support from the federal and Ontario governments, aimed to create 1,000 new jobs and produce up to 240,000 EVs annually by 2028. Federal and provincial governments had committed up to \$5 billion in support, though Ontario has yet to disburse funds to Honda.
Ontario Premier Doug Ford expressed confidence that Honda will proceed with expansion plans and pledged to hold automakers accountable if they withdraw. Local officials remain optimistic despite the delay.
Industry experts cite U.S. tariffs and slower-than-expected consumer demand for EVs as key factors in the postponement. Honda’s global profits declined due partly to tariffs, prompting a cautious approach to future investments. Analysts also highlight the need for improved EV charging infrastructure and government support to boost consumer adoption.
Despite current challenges, experts affirm the long-term shift toward electrification remains intact, though the pace may be slower than initially expected.
Source: Swifteradio.com
