Feds, Ontario subsidize Honda for creation of new EV production facilities

May 2, 2024 · 0 Comments

By Brian Lockhart

Honda will invest $15 billion in Canada to create an electric-vehicle supply chain, including four manufacturing plants.

The project will be subsidized by the federal and provincial governments to the tune of $5 billion.

The announcement was made at the Alliston Honda plant by Prime Minister Justin Trudeau and Ontario Premier Doug Ford on Thursday, April 25. The press conference also included Deputy Prime Minister Chrystia Freeland, Ontario Finance Minister Peter Bethlenfalvy, and Vic Fedeli, Ontario Minister of Economic Development, Job Creation, and Trade.

New Tecumseth Mayor Richard Norcross, attended on behalf of the Town.

“This is a very big day for the region, the province, and the country,” Prime Minister Trudeau said during the announcement. “Today, Honda is making Canadian automotive history. With this announcement, we will be investing to create Canada’s first comprehensive electric vehicle supply chain from start to finish. A whole eco-system will be built with four new manufacturing plants in Ontario including an EV assembly plant, a stand-alone battery manufacturing plant, and two plants for battery components. These investments will create well over 1,000 well-paying manufacturing jobs as well as many construction jobs, and of course jobs all across Ontario and the country for auto parts suppliers.”

Honda has set a goal of having electric vehicles represent 100 per cent of vehicle sales by 2040.

“This deal is another example of our two governments working together to rebuild our economy, to create better jobs with bigger paycheques, and we’re getting it done,” Premier Ford said.

It is expected that Honda will take advantage of provincial and federal tax credits that could be as much as $2.5 billion from each level of government.

“For 38 years, Honda has been an outstanding community partner,” Mayor Norcross said. “Honda is the corporate citizen that a community dreams about. Their corporate generosity and charitable actions have enhanced, and will enhance, and has always enhanced the well-being of our town. With Honda and their dedicated associates, so many of our community initiatives, which include expansion and new equipment to Stevenson Memorial Hospital and Matthews House Hospice would never have been possible.”

Mayor Norcross extolled the virtues of having a major manufacturing facility in the town.

“With today’s announcement, we are excited that Honda continues to invest in our community’s future while continuing to showcase New Tecumseth as global leader in manufacturing,” Mayor Norcross said.

Colin Oake, president of the Alliston and District Chamber of Commerce, said this announcement is fantastic news for Alliston and surrounding communities.

“We know the jobs have are going to be safe for the future and we are going to be adding 1,000 new jobs,” Oake said. “So many people are either directly employed with Honda, or just the knock-on effect from such a manufacture creates jobs. We estimate that every Honda job creates about seven possible knock-on jobs. It has a huge effect on people’s futures of having quality employment. Everyone is really excited. The potential growth in sales from new people in the community and new jobs in the community is terrific and we’re really excited to see it happen.”