It was only a year ago that then Prime Minister Justin Trudeau and Ontario Premier Doug Ford arrived at the Honda plant in Alliston for the announcement of a $15 billion investment to create an electric-vehicle supply chain.
The premier and prime minister were there to announce that the federal and provincial governments were going to subsidize the project to the tune of $5 billion.
The feds were ready to give the automaker around $2.5 billion through tax credits, while Ontario committed to providing up to $2.5 billion in support directly and indirectly.
Honda has not yet received any of those funds.
The project was expected to create 1,000 jobs on top of the existing 4,200 jobs at the Honda assembly plant.
However, Honda has now announced that it will delay the project for at least two years. The auto manufacturer made the announcement on Tuesday, May 13.
“Due to the recent slowdown of the EV market, Honda Motor has announced an approximate two-year postponement of the comprehensive value chain investment project in Canada,” a spokesperson for Honda said in a statement. “The company will continue to evaluate the timing and project progression as market conditions change.”
The original plan called for the plant to produce up to 240,000 vehicles per year when it became operational in 2028.
When U.S. tariff threats were first brought up, Honda issued a statement on April 15, 2025, saying that they were confident it would get through any challenges it faced with potential U.S. tariffs.
However, Honda will be shifting some production of its popular CR-V model that is intended for the U.S. market to its Ohio plant because of tariffs.
Honda said it has no plans to cut overall production or any jobs in Canada, and that the postponement of the project will have no impact on Honda workers who are currently employed at the Alliston plant.
Several other automakers in North America have scaled back on EV production as sales have not been as predicted and the public doesn’t seem to be warming up to the idea of driving a fully electric vehicle.
New Tecumseth Mayor Richard Norcross issued a statement on the project postponement on Tuesday, May 13.
“For over 40 years, Honda has been a valued and trusted partner to New Tecumseth, contributing significantly to our community and local economy,” Mayor Norcross said. “We are pleased that Honda remains committed to its operations in Alliston and to New Tecumseth’s future. While we are disappointed by the delay in the project, we remain optimistic that the transition to electric vehicles will reinvigorate this important initiative in the near future. The Town of New Tecumseth stands ready to work collaboratively with Honda, as well as our partners in the provincial and federal governments, to support and advance this significant investment when the time is right. We thank Honda for its continued presence in our community and look forward to the next chapter of innovation and collaboration.”
Brian Lockhart,
Local Journalism Initiative Reporter
New Tecumseth Times
