Photo Credit: Honda Canada

JOBS Honda of Canada Mfg. to Invest more than $1.38 billion in Ontario Manufacturing Plants in Preparation for Electrified Future

Thursday, 24 March 2022 10:19.AM

- Investment is a step toward realizing Honda's goal of zero emissions by 2040, establishing HCM as a global leader in hybrid electric vehicle production. -

Honda of Canada Mfg. (HCM), a division of Honda Canada Inc., announced today that it will invest $1.38 billion over six years to upgrade its award-winning Alliston, ON, manufacturing plants. 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.

This 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.

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.

"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. "HCM is home to a team of remarkably talented associates who build some of Honda's most popular and fuel-efficient products. 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."

Honda's overall fleet emits the lowest greenhouse gas (GHG) emissions among internal combustion engine manufacturers in Canada*, and new hybrid products will reduce GHGs by 30 per cent compared to traditional gasoline powered vehicles. The shift to these new products aligns with Canada's overall GHG reduction goals and Honda's global goal of realizing carbon neutrality for its entire business, including products and operations, by 2050.

By retooling both production lines at HCM, Honda will secure thousands of well-paying, high-quality jobs in Alliston and throughout Honda's extensive Canadian supplier network. 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. These investments will have a lasting and profound benefit for the Honda Canada dealer network, partnering suppliers, and the overall Canadian auto industry, including employees, their families, and the communities where they live and work.

Honda of Canada Mfg. has the capacity to produce more than 400,000 vehicles and 190,000 engines annually, including the Honda Civic, Canada's best-selling passenger car for 24 consecutive years, and CR-V models for the Canadian and North America markets, as well as for export. Approximately 100,000 Canadian-built Civic and CR-V units are sold annually in Canada.

"Today, we're investing in workers, in communities, and in our future. 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."
-The Rt. Hon. Justin Trudeau, Prime Minister of Canada

SOURCE: Honda Canada Inc.

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