Ontario Secures Another Game-Changing Auto Investment

Landmark investment from Honda Canada secures thousands of jobs and moves Ontario one step closer to becoming a North American hub for building the cars of the future

March 16, 2022
Premier’s Office

“Our government has a plan to build the future of auto manufacturing right here in Ontario,” said Premier Doug Ford. “We’re attracting more skilled workers to fill critical jobs and connecting resources and industries in northern Ontario to the future of manufacturing electric and hybrid vehicles so that every region can enjoy the economic benefits of these game-changing investments. We are so pleased that Honda has made this investment in Ontario and know that the cars of the future will be built here in Alliston and all across Ontario for decades to come.”

With support from the provincial and federal governments, Honda’s major investment will upgrade assembly lines to begin manufacturing hybrid models. Currently, Honda of Canada Mfg.’s vehicle and engine production facilities produce gas engine-based variants of the CR-V and Civic.

This investment will accelerate Ontario’s 10-year vision for the Driving Prosperity ― The Future of Ontario’s Automotive Sector plan. Phase 2 of Driving Prosperity is an important part of the government’s plan to transform the province’s automotive supply chain to build the cars of the future, including the production of hybrid, battery electric vehicles, EV battery production and increasing exports of Ontario-made auto parts and innovations.

“Ontario is proud to support Honda Canada’s major investment to retool its Alliston plant to manufacture the company’s next-generation models, including hybrid versions. Through Phase 2 of our Driving Prosperity plan we are focusing on transitioning Ontario’s automotive supply chain,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By reducing the cost of doing business in Ontario by nearly $7 billion annually, our government has created the right economic conditions to attract yet another historic investment that further positions Ontario as a North American leader in developing and building the cars of the future.”

Honda’s global electrification strategy includes targeting sales of 100 per cent zero-emission vehicles in North America by 2040 through an incremental plan over the next two decades. Pivoting to hybrid technologies and production will allow Honda of Canada Mfg. to continue its critical role in meeting that goal while strengthening Ontario’s capacity to produce in-demand next-generation vehicles. This historic investment will secure thousands of well-paying, high-quality jobs and manufacturing operations in Alliston for years to come while also bolstering the Ontario auto sector’s hybrid and EV transition.

Quick Facts

• The Government of Canada is making a matching contribution of $131.6 million toward the project.
• Honda of Canada Mfg. (HCM) was established in 1986 and is Canada’s second largest automotive manufacturer.
• HCM can produce more than 400,000 vehicles and 190,000 engines annually and manufactures two of Honda’s best-selling models globally, the Civic and the CR-V.
• HCM is the largest employer in the Simcoe region, which incudes Alliston.
• Honda Canada Inc. and its family of Honda and Acura dealers employ approximately 19,000 people from coast to coast, including approximately 4,200 manufacturing workers at HCM in Ontario.
• The province’s vehicle assembly facilities are supported by a supply chain comprising over 700 parts firms and over 500 tool, die, and mold makers.
• Vehicle assembly and auto parts production directly supports nearly 100,000 Ontario jobs, with hundreds of thousands more spin-off jobs in communities across the province.
• Recent investments over the past 18 months, including the current one by Honda, have totalled over $7 billion toward Ontario assembly operations, including around $4 billion in transformative investments in electric vehicle production.
• On February 15, ArcelorMittal Dofasco and Ontario announced a $1.8 billion investment in ‘green steel’ production to support the future of Ontario’s auto sector.
• Ontario has committed $56.4 million over the next four years through the Ontario Vehicle Innovation Network (OVIN) to support innovation and transformation in our auto tech system.

Quotes

“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

“With today’s investment, our government is securing thousands of good, well-paying jobs in Ontario’s auto sector. This investment will help support Honda as they transition to producing the cars Canadians want: low and zero-emission vehicles. 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.”

– The Honourable François-Philippe Champagne
Minister of Innovation, Science and Industry

“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. 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.”

– Jean Marc Leclerc
President and CEO of Honda Canada Inc.

Additional Resources

• 2021 Ontario Economic Outlook and Fiscal Review: Build Ontario
• 2021 Budget – Ontario’s Action Plan: Protecting People’s Health and Our Economy
• See how your organization can help fight COVID-19

Media Contacts

Ivana Yelich
Premier’s Office
[email protected]

Rebecca Bozzato
Minister Fedeli’s Office
[email protected]