Honda to put $166M into Alliston plant for hybrid retooling, reviving engine work
The $166 million is part of an $867 million commitment backed by $313 million from Ottawa and $156 million from Ontario, for a plant employing about 4,000 Canadians.
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Honda is putting $166 million into its Alliston, Ontario, plant to retool it for hybrid-electric and gasoline vehicles and to bring engine manufacturing back to the town. The investment was announced Monday.
The plant employs more than 4,000 Canadians across two facilities. Alliston built more than 400,000 vehicles last year. The Civic and CR-V lines built there come in petrol and hybrid variants.
The $166 million is part of an $867 million Canadian commitment that covers quality, efficiency and manufacturing flexibility. Ottawa is contributing $313 million and Ontario $156 million. Honda Canada president and CEO Dave Jamieson called the investment a reinforcement of Canada's role in the company's North American growth and hybrid-electric strategy. Industry Minister Mélanie Joly said it will support "thousands of well-paying jobs" in Ontario and across the country.
Honda indefinitely suspended a $15-billion EV complex it had planned for Alliston, which was to be operational by 2028 and create about 1,000 manufacturing jobs. Honda had received none of the upwards of $5 billion in federal and Ontario funding it was set to receive. Honda posted its first-ever full-year loss, which it attributed largely to lower EV demand after U.S. environmental rules were rolled back. Prime Minister Mark Carney called the EV decision "disappointing."
