Honda plans $1.38 billion plant upgrade in Alliston

Ontario Construction News staff writer

Honda Canada Manufacturing (HCM) will invest $1.38 billion over six years to upgrade its manufacturing plants in Alliston, to produce electric hybrid vehicles.

Prime Minister Justin Trudeau and Premier Doug Ford were at the announcement in Alliston last week and each kicked in $131.6 million to the project.  Honda will make the plan its main facility for the 2023 CR-V Hybrid crossover.

The announcement marks an important step in the company’s switch 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.

“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.

“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 global goal is carbon neutrality for its entire business, including products and operations, by 2050.

By retooling both production lines in Alliston, Honda will create a range of research and development programs that further reduce environmental impacts of vehicle production.

“Today’s announcement is more proof that there is no better place for auto manufacturing than right here in Ontario,” Premier Doug Ford said at the announcement.

“We are home to the most skilled workers anywhere in the world, we have all the necessary natural resources, and we have created the best environment for jobs to grow and businesses to flourish.”