Premier Doug Ford says Honda Canada will make good on its promised $15-billion investment to build an EV battery plant and upgraded vehicle assembly facility in Ontario, despite an announcement on Tuesday that it plans to postpone the project by two years.
Honda initially announced plans to expand its footprint in Allison, Ont. back in April 2024, a move that was expected to create 1,000 jobs on top of the existing 2,400 at the current plant.
However, on Tuesday, the company said in a statement that due to a recent slowdown in the EV market, it was postponing the project by approximately two years. Honda said the decision has “no impact” on the jobs or production at the Alliston plant but that it will continue to evaluate the timing of the forthcoming expansion “as market conditions change.”
Ford was asked about the announcement Tuesday and said Honda has “promised” his government it will continue with its planned growth in Ontario.
“When I’ve talked to Honda, they promised us they’re going to continue on with their expansion. They’re going to keep that facility moving forward. So we’ll just see how that moves forward. But we’re very confident that they’ll continue producing Honda vehicles here in Ontario,” he said.
Asked what the announcement means for the $2.5 billion the province has offered up for capital and servicing costs to carry out the project, Ford said his government will hold Honda and other carmakers “accountable.”
“Each auto manufacturer, anything that we’ve given them, we’re going to make sure that they’re held accountable and that they continue manufacturing automobiles right here in Ontario,” he said. The federal government also pledged $2.5 billion for the project through tax credits.
Honda Motor Co. reported its latest financial results Tuesday and said its profit for the financial year through March fell 24.5 per cent year-over-year. The Tokyo-based automaker warned that U.S. President Donald Trump’s tariffs will worsen its earnings and forecasts a 70 per cent drop in profit for the fiscal year through March 2026 if they remain in place.
Trump slapped a 25 per cent tax on auto imports last month, in addition to an existing 25 per levy on imported steel and aluminum.
Ontario is set to reveal its budget on Thursday as the trade war continues, and Finance Minister Peter Bethlenfalvy has said the tariffs -- which he described Tuesday as a “challenge unlike anything” Ontario has faced before -- will be the central focus of the spending plan.
“Our closest ally, the United States, has imposed tariffs on us, creating economic uncertainty and once again, driving up costs for families. That is why, now, more than ever, it is necessary that we do more to protect Ontario, including our families, our workers, our businesses and our economy,” he said.
Ford has been outspoken in his opposition of the tariffs and on Tuesday he said he’s optimistic Prime Minister Mark Carney will be able to reach an agreement with Trump, as the president appears to be “making deals with everyone.”
His comment comes after news of a 90-day pause in the U.S. trade war with China.
“I’m very confident Prime Minister Carney is going to be there and working alongside President Trump, and they come up with a mutually rewarding relationship when it comes to tariffs, that’s what we look forward to,” Ford said.
With files from The Associated Press
