Honda Considering $18.5B Investment for EV Production in Canada, Report Says
A recent report by Reuters stipulates that Honda could be planning a major move in EV manufacturing in Canada. Based on information acquired by Japan’s Nikkei News agency, the automaker could be planning a drastic expansion of its operations in Canada and is currently evaluating several possible assembly sites, including one next to its current Hamilton, Ontario plant.
According to the information, the 2 trillion yen (18.5 billion Canadian dollars) envelope could be invested in an assembly site that would also include a battery production facility. Honda expects to make a final decision on the production site’s location by the end of 2024, with the new facility planned to go online as early as 2028. Despite the slow down in EV sales caused by rising interest rates in the U.S., Canada is pressing on with its ambitious goals to ban the sale of ICE-powered vehicles by 2035.
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Last year, Honda scrapped its affordable EV manufacturing venture it had drawn up with General Motors. No specific reason for this break-up was provided by the Japanese manufacturer at the time, but it did issue a statement specifying that the decision was taken by both parties. The upcoming Prologue SUV, the brand's first EV in Canada, will still be built on GM's Ultium platform.
Honda is planning to show an all-new global electric vehicle series at CES 2024 in Las Vegas on January 9.