Honda Canada Pulls Out of $15-Billion Ontario EV Plant
Honda Canada reportedly pulled out of a planned $15-billion EV plant in Ontario, a project in Alliston that was supposed to be operational in 2028. The plant was expected to produce up to 240,000 EVs annually, and the reported decision would remove one of the country’s largest proposed auto investments from the pipeline.
Mark Carney said Canada’s auto sector is facing challenges tied to U.S. tariffs and said the government is working with companies in the industry. For suppliers, workers, and provincial planners, the immediate issue is whether that production footprint and the jobs built around it still move forward.
Alliston plant and 2028 target
The planned facility in Alliston, Ont., was meant to be a major EV production site, with output reaching 240,000 EVs annually. Honda had already announced a delay in its plans for the plant last May, making Tuesday’s report the sharpest turn yet in a project that had been central to Canada’s EV manufacturing push.
The scale matters because the plant was not a minor add-on. A $15-billion build with a 2028 operating target would have sat near the top of Canada’s industrial investment ladder, and any pullout would leave a large gap between announced policy ambitions and actual factory output.
Carney cites tariff pressure
On Wednesday, Carney said before a caucus meeting that “Obviously there’s challenges with the U.S. tariffs, unjustified tariffs in the auto sector,” and added, “We continue to work with companies in the sector, helping them reposition, reinvest, supporting workers there, we’ll continue to do what’s necessary, including getting the right deal that’s in Canada’s interest,”
At an event in Mirabel, Que., he said, “We’re in discussions with them [Honda] constantly,” and also said, “There’s no announcement today to be clear.” The remarks left the government signaling engagement rather than closure, even as the reported pullout added pressure to a sector already dealing with tariff-related cost and planning risk.
Honda Canada says nothing new
Ken Chiu, a Honda Canada spokesperson, said, “The content of the article was not released by Honda, and we have nothing to report at this time.” That response leaves the report unaddressed while avoiding any company-side confirmation of a change in the Ontario project.
The federal government had announced its auto strategy in February, including an EV incentives program to build a stronger Canadian domestic consumer market and investments to enhance the national EV charging network. If Honda’s reported decision holds, those measures would face an immediate test: policy support on one side, and a delayed or abandoned flagship plant on the other.
