Nikkei reported that Honda is exploring various locations for the plant, including proximity to an existing automobile factory in Ontario.


January 08, 2024

Honda Motor Co is reportedly contemplating establishing an electric vehicle (EV) factory in Canada, according to Japan's Nikkei news group. This potential project, valued at nearly 2 trillion yen (equivalent to about $13.83 billion USD), might also involve producing batteries within the facility.

The investment under consideration is anticipated to rank among Honda's most significant financial commitments, as per the report by Nikkei.

Sources suggest that the Japanese automaker is evaluating various locations for the prospective plant. Among the options being considered is the vicinity near an existing automobile manufacturing plant in Ontario. Nikkei sources indicate that Honda aims to finalize its decision by the year-end, with plans for the new facility to commence operations as early as 2028.

Upon reaching out to Honda for comment regarding the report, the company did not provide an immediate response to Reuters' request.

While Industry Minister François-Philippe Champagne refrained from confirming the news, he highlighted Canada's standing as an influential destination for major environmentally-friendly investments in the automotive sector. In a statement to Global News, Champagne acknowledged the significance of the reported investment, emphasizing Canada's competent workforce and robust industry.

According to the minister, Honda's potential considerable investment in Canada underscores the country's emerging recognition as a favored provider of sustainable solutions and a leader in the electric vehicle domain. Champagne affirmed the commitment to further fortify Canada's automotive industry to align with the demands of the 21st-century economy.

This prospective development aligns with Honda's existing plans to kickstart the production and sale of electric vehicles in North America by 2026, based on their innovative Honda e:Architecture. Earlier collaborations between Honda and LG Energy Solution also included an announcement in 2022 about Ohio being chosen as the site for their proposed joint-venture battery manufacturing plant, amounting to a projected investment of $4.4 billion.

However, it's worth noting that in October 2023, Honda and General Motors decided to abandon their joint efforts to create affordable electric vehicles. This decision came a year after both companies had initially agreed to collaborate in a $5 billion venture to rival Tesla in sales.

This news draws attention to Canada's growing stature as an attractive hub for substantial investments in sustainable automotive technology, positioning the country as a competitive force in the global electric vehicle market.

Contributions from Global News' Carly Yoshida-Butryn were used in this report.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

World Economic Forum Chairman Klaus Schwab Retires After 50 Years of Global Leadership

Klaus Schwab, the 87-year-old founder of the World Economic Forum (WEF), has stepped down as chairman. After leading the influential....

China Returns $55m Boeing Jet as Trump Tariffs Impact Trade

A Boeing 737 MAX originally bound for China’s Xiamen Airlines made an unexpected return to the US on Sunday. The....

China-U.S. Tariff War Rattles Trade Ties and Businesses

Chinese exporters are on edge as a sweeping tariff war with the United States threatens long-standing trade relationships. What started....

Trump’s Commerce Chief Says, Electronics Tariff Exemption Is Temporary

The U.S. government’s decision to temporarily exempt electronics like smartphones and laptops from tariffs may not offer lasting relief. The....

Hudson’s Bay Insider Bid Protocol Raises Sale Speculation

Hudson’s Bay Company (HBC) has taken a significant step in its ongoing creditor protection process. A new internal protocol shared....

Prada to Acquire Rival Fashion House Versace in €1.25 Billion Deal

In a major move reshaping the global luxury fashion landscape, Prada Group has officially announced its acquisition of Italian fashion....

Biggest Drop in Gas Prices Across Canada: What’s Behind the Relief?

Canadians have been noticing a welcome change at the gas pumps. Over the past few weeks, fuel prices have fallen....

Trump Pauses Reciprocal Tariff for 90 Days, Hits China Harder with 125%

President Donald Trump has announced a temporary relief in his sweeping tariff policy, pausing higher levies for 90 days on....

Wall Street Fears Another ‘Black Monday’ Amid Trump’s Tariff Shock

U.S. stock futures plunged Sunday evening, triggering fears of a repeat of Black Monday, as markets reacted sharply to President....

In Canadian Business This Week: Key Events to Watch

As Canada steps into a new business week, several developments are set to shape the national economic narrative. From politics....

Ontario Businesses Fined for Hiring 700 Unauthorized Foreign Workers

A major federal investigation has resulted in significant penalties for three Ontario-based businesses that were found guilty of employing hundreds....

Markets Brace for Turbulence and Recession Fears as Liberation Day Approaches

Investors are on edge as Liberation Day, set for April 2, nears. As the year's first quarter ends on a....