Honda of Canada Mfg. (HCM) announced that it will invest $1.38 billion over six years to upgrade its  Alliston, Ontario manufacturing plants. 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.

“Building hybrid-electrics will support thousands of good jobs here in Alliston and grow the economy, all while cutting pollution and keeping our air clean. By helping Canadians build – and then drive – cleaner vehicles, we’re delivering on our plan to build a better future for all,” said Justin Trudeau, Prime Minister of Canada.

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.

“Today’s announcement is more proof that there is no better place for auto manufacturing than right here in Ontario,” said Doug Ford, Premier of Ontario. “We are home to the most skilled workers anywhere in the world, we have all the necessary natural resources, and we have created the best environment for jobs to grow and businesses to flourish. We are so pleased that Honda has made this investment in Ontario and that the cars of the future will be built here in Alliston and all across Ontario for decades to come.”

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.

“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. “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.”

Prime Minister Justin Trudeau and Ontario Premier Doug Ford tour Honda Canada’s Alliston, Ont. plant, March 16, 2022. (Twitter: @JustinTrudeau)

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.

“This investment will help support Honda as they transition to producing the cars Canadians want; low and zero-emission vehicles,” said François-Philippe Champagne, Minister of Innovation, Science and Industry. “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.”

Featured image: (Honda Canada)

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