Industry giant Honda Canada Inc. has announced a $1.4 billion investment in their award-winning Alliston plants located in Ontario, Canada as a next step in their pathway to electrification. By re-tooling the plants, Honda will invest in new technologies, processes, supply chain and vehicle research and development programs and become the North America Lead Plant for the all-new 2023 CR-V Hybrid crossover. Honda will also build the 2024 Civic −the first hybrid-electric version of the model− out of the Alliston plant.
“This represents an important milestone for Honda as we move forward in our ambitious vision to make battery electric vehicles represent 100% of our North America vehicle sales by 2040,” said Jean Marc Leclerc, President and CEO of Honda Canada Inc.
Honda already produces the lowest emitting greenhouse gas emissions (GHG) fleet sold in Canada and new hybrid products will reduce greenhouse gas emissions by 30% compared to traditional gasoline powered vehicles. The shift to these new products is in alignment with Honda’s global goal of realizing carbon neutrality for its entire business, including products and operations, by 2050 – and with an energy mix that’s 94% emissions free, Ontario is the perfect place for the company to meet their sustainability targets.
Not only is Ontario’s energy mix clean – it’s cost competitive. The province addresses the costs of electricity through a Comprehensive Electricity Plan, saving medium-size and larger industrial and commercial employers 15-17% on average on their electricity bills. Rates are lower because Ontario pays for a portion of non-hydro renewable energy contract costs, providing lower and more stable prices for Ontario’s electricity supply. This, in addition to the creation of Clean Energy Credits, positions Ontario as a top location for those investors seeking a green energy footprint.
This announcement brings Honda’s total Canadian manufacturing investments to over $6 billion since 1986, when Honda became the first Japanese auto maker to build a manufacturing facility in the country. Each year, Honda Canada sources over $3 billion in goods and services from Canadian suppliers taking advantage of the province’s robust supply chain.
This is just one of many recent announcements that highlight why Ontario, Canada is a hub for tomorrow’s EV.