Despite pausing a $15-billion electric vehicle (EV) project in Ontario, Honda remains “fully committed” to investing in Canada’s EV future, according to Industry Minister Mélanie Joly.
In a statement released Wednesday, Joly confirmed she had spoken directly with Honda Canada CEO Dave Jamieson, who assured her that the company would not be cutting jobs as a result of the project delay.
“Honda is still fully committed to major EV investments right here in Canada,” Joly said. “We are working together to make it happen.”
On Tuesday, Honda announced it would postpone the landmark EV project, which included plans for a new battery facility and multiple production lines in Alliston, Ontario, citing uncertain market demand and shifting dynamics in the global auto industry.
The announcement comes amid a broader softening in EV growth projections, as well as fallout from tariff measures introduced by U.S. President Donald Trump, which are forcing Honda to rethink its North American production strategy.
Honda said it would shift some CR-V production to Ohio to mitigate the impact of the tariffs. The CR-V currently accounts for nearly half of Honda’s vehicle output in Canada, which totaled around 420,000 units in 2024 — making Honda the country’s second-largest automaker.
“We’re basically swapping export destinations of a small portion of CR-Vs between our plants,” said Honda Canada spokesperson Ken Chiu. “There are no job losses or reductions in overall production in Canada.”
The EV project was expected to create over 1,000 new jobs and significantly expand Honda’s Canadian footprint. However, in a quarterly earnings call, Honda global CEO Toshihiro Mibe said the company would reassess the project in two years, depending on how EV demand evolves.
“We have to observe what’s happening and ultimately make the decision,” Mibe said in Tokyo.
He acknowledged that while the EV delay was driven by market forces, the more immediate reason for production shifts was U.S. tariffs on imports from Canada and Mexico.
“If the tariffs stay in place long-term, we’ll have to expand production capacity in the United States,” he said.
Joly emphasized that the Canadian government remains in “solution mode” and committed to supporting the auto industry through global challenges, including supply chain disruptions and protectionist policies.
Honda confirmed that the 4,200 employees currently working at its Alliston plant will not be affected by the delayed EV plans. The company is simply adapting operations to navigate evolving trade conditions, according to executives.
The delay is the largest EV-related project pause in Canada to date, and it comes amid growing questions about how sustainable the EV transition will be in the face of market slowdowns and shifting geopolitical pressures.