Honda Motor Company announced on March 16, 2022, that they will be investing $1.38 billion dollars over the course of six years to upgrade their Ontario manufacturing plant. Their facility is based out of Alliston, Ontario, and will be transformed into the head operation for the manufacturing of the CR-V hybrid model.
“We’re announcing great news today, that is going to secure thousands of good middle class jobs across southern Ontario and build a strong, sustainable economy. As we build a cleaner future, the automotive sector is a key partner in powering the way forward.”-Justin Trudeau, Prime Minister of Canada
Honda’s investment will upgrade their facilities with the equipment and processes needed for electric vehicles (EVs) and electric hybrid vehicle manufacturing. Units, such as the Honda CR-V and the CR-V Hybrid models, will be highlighted as a part of the company’s push towards greener vehicles.
“By modernizing our plants for the future, we are protecting thousands of high-quality, well paying Canadian jobs for years to come,”-John Bordignon, Honda Canada Spokesman
This investment comes at a strategic junction, as global and domestic oil prices rise, accompanied with concerns over climate change. Honda and other auto manufacturers such as General Motors, Ford, and Chrysler have taken the initiative to capitalize on the demand for EVs by increasing output capacities in the heart of Ontario manufacturing.
How is Canada Investing in Electric Vehicles?
This investment has been supported by the Canadian provincial and federal governments as an attempt to accelerate the transition to clean transportation outlined by guides such as Driving Prosperity: The Future of Ontario’s Automotive Sector.
“Our government has a plan to build the future of auto manufacturing right here in Ontario. We’re attracting more skilled workers to fill critical jobs and connecting resources and industries in northern Ontario to the future of manufacturing electric and hybrid vehicles so that every region can enjoy the economic benefits of these game-changing investments. We are so pleased that Honda has made this investment in Ontario and know that the cars of the future will be built here in Alliston and all across Ontario for decades to come.”-Doug Ford, Ontario Provincial Premier
The federal and provincial governments have each committed to matching $131.6 million, for a total of $260 million, in funding contributions for Honda’s initiative with the focus on creating and retaining thousands of jobs for the people of Ontario that work within the auto-manufacturing sector. This funding support is in addition to other automotive funding programs, including the Zero-Emission Vehicle Awareness Initiative (ZEVAI)and the Ontario Vehicle Innovation Network (OVIN): Talent Development Program.
Ontario has also committed to improve the automotive industry via investments in theOntario Vehicle Innovation Network (OVIN) which will continue the work of the AVIN initiative thanks to a $56.4 million investment spanning the next four years.
Funding for Electric Vehicles in Canada
As the need for EVs rises in Canada and across the world, clean energy automotive products will receive more and more government funding support to drive Canada’s competitive edge as a leader in this industry. To learn more about government funding for electric vehicles, contact the Mentor Works team for a professional opinion.
If you would like to learn more about opportunities such as the federal electric car rebate Canada, visit our automotive funding programs directory for a comprehensive list. Readers can also subscribe to our government funding newsletter to receive weekly updates on everything government funding.
New government funding programs open every week, and ongoing programs accept applications with a short intake window. Our Business Development team lets our clients know about new programs and intake periods before they’re announced on our site.