Honda is making a significant investment in Canada, committing US$11 billion to establish an electric vehicle (EV) supply chain. This move demonstrates a strong dedication to fully electrified cars, surpassing the efforts of other Japanese automakers. François-Philippe Champagne, Canada’s Minister of Innovations, Science, and Industry, hailed the investment as a historic event that will bring about transformative change in the automotive industry.
The plan involves creating a fully integrated vertical supply chain covering raw materials, batteries, and EV production. Honda’s Global CEO Toshihiro Mibe emphasized that the investment in Canada will lay a robust foundation for highly profitable EV production. The company aims to manufacture 240,000 electric vehicles in its production plant in Alliston, Ontario, by 2028, with a focus on creating 1,000 jobs in the region.
This initiative is expected to have a broader positive impact, generating more employment opportunities across Canada. Honda Canada’s President and CEO Jean Marc Leclerc praised the historic investment by Honda in the Canadian auto industry, recognizing the skill and dedication of its workforce in Alliston. The company’s goal is for its entire car lineup to be electrified by 2030, aligning with the global shift toward electric vehicles.
Despite some hesitation from Japanese automakers in embracing electric vehicle production, Honda’s investment signifies a resolute commitment to this future-oriented market. While some automakers have expressed reservations about the demand for electric vehicles and are turning to hybrid solutions, electric vehicle advocates like Elon Musk believe that electric vehicles will ultimately dominate the market. As electric car makers such as Tesla and Rivian continue to advocate for 100% EV adoption, Honda’s substantial investment in Canada represents a bold step towards this future.