Honda halts plan to build $15B EV plant in Canada: report
Honda cites weak U.S. demand and tariff pressure as it shifts its North American strategy toward hybrids after a $15.7 billion EV writedown.
- Honda shelved its planned C$15 billion electric-vehicle and battery manufacturing hub in Alliston, Ontario, on May 5, 2026, following a completed review of the project.
- Originally unveiled in April 2024 as a "historic" investment, the project was paused in May 2025 amid tariff uncertainty and weakening EV demand, leaving the timeline under review until this cancellation.
- Reflecting a wider strategic retreat, Honda took a $15.7 billion writedown on its EV business and canceled three key EV models for the North American market, shifting focus toward near-term hybrids.
- While Honda confirms current employment at its existing Alliston plant—which employs 4,200 workers—remains unaffected, the cancellation deals a blow to Canada's national EV strategy.
- Suppliers like Asahi Kasei have pushed related development timelines to 2029, while Premier Doug Ford previously vowed to hold automakers "accountable" for pulling back from EV investments.
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59 Articles
Honda has shelved plans for a $11 billion EV factory in Canada due to slowing market demand and is preparing to end production of electric vehicles developed jointly with GM, instead focusing on the hybrid vehicle market in the United States.
The London free Press
Ontario’s EV push hit as Honda reportedly halts Alliston plans
TORONTO – Ontario’s ambition to become a major hub for electric vehicle (EV) and battery production is facing another setback after Honda reportedly decided to halt plans for new EV and battery manufacturing plants at its existing campus in Alliston.
Honda Cancels Plans to Build $15 Billion Electric Vehicle Factory in Canada: Report
Honda is indefinitely suspending its plan to build a $15 billion electric vehicle (EV) factory in Ontario, according to a Japanese news outlet. Slow demand in the United States had forced the Japanese automaker to put hybrid vehicles at the “centre of its North American strategy,” and freeze plans for the EV factory, Nikkei Asia reported May 6. The reported suspension comes a year after Honda CEO Toshihiro Mibe announced the company would postpo…
Ottawa says carmakers facing 'significant change' amid reports Honda to suspend plans for EV plant
Japanese news media reported that Honda Motor plans to indefinitely halt the development of its $15-billion electric vehicle complex in Canada, though Honda Canada said they had nothing to report at this time. Ottawa acknowledged automakers face "significant challenges," but did not say whether the company had updated them on those plans.
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