Honda Delays $15 Billion Electric Vehicle Project In Canada

Japanese automaker Honda Motor Co. (HMC) is postponing a $15-billion electric vehicle (EV) project in Ontario as it shifts more production to the U.S. due to American import tariffs. In announcing the Canadian manufacturing pause, Honda cited market demand. The company also said its is shifting more production of its popular CR-V model to its plant in Ohio.Postponement of the electric vehicle project in Alliston, Ontario is the biggest project delay yet in Canada after U.S. President Donald Trump announced tariffs of as much as 25% on foreign vehicles. In an earnings call on May 13, Honda Chief Executive Officer (CEO) Toshihiro Mibe said the company will look at where the EV market is in two years before deciding whether to proceed with the Canadian investment. While the CEO cited electric vehicle demand for the delay, he also said the company’s move to shift CR-V production to the U.S. is a result of Trump’s tariffs.Honda was the second largest automotive manufacturer in Canada during 2024, producing 420,000 vehicles, and the CR-V sport utility vehicle makes up close to half that production.The postponed electric vehicle project included a battery plant, a retooled assembly line, and two additional plants.The halt to the electric vehicle expansion has no impact on the 4,200 people who currently work at the Honda manufacturing plant in Alliston, Ontario, said the company. However, the new $15-billion EV plant was expected to create 1,000 news jobs. Honda said that U.S. tariffs are expected to cut $4.40 billion U.S. from its operating profit this fiscal year.The stock of Honda Motor Co. has gained 4% this year to trade at $29.63 U.S. per share.