On February 6, 2024, a new Honda Pilot was displayed at the Honda Marin sales office in San Rafael, California.
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Derut – honda cars The Japanese automaker announced on Thursday that its joint venture partners plan to invest $11 billion in the Canadian province of Ontario to create a “comprehensive electric vehicle value chain.”
this company says The new North American Electric Vehicle Center will include new assembly and battery plants and other facilities to support the production of all-electric and fuel cell-powered vehicles.
Honda said that car production will start in 2028, and the annual production capacity will reach 240,000 vehicles after full production. The investment in Alliston, Ont., is expected to significantly assist Honda in its goal of offering exclusively all-electric and fuel cell-powered vehicles by 2040.
The timing of the investment may seem odd to industry onlookers and investors, as many automakers have announced plans to pull back on their all-electric vehicles due to slower-than-expected adoption.
Honda said the investment was “for future growth in electric vehicle demand in North America” and that the battery plant will be able to produce 36 gigawatt hours (GWh) of electricity per year.
The project is expected to create at least 1,000 new jobs, bringing the company’s current workforce to 4,200 employees at its two existing manufacturing facilities in Ontario.
Canadian Prime Minister Justin Trudeau said during a live news conference on Thursday that Honda’s investment of C$15 billion is the largest investment ever in the country’s auto industry. The company expects to receive more than C$2.5 billion in tax credits and other incentives from the Canadian government, officials said.
The investment is a major win for Canada, and comes after Honda last year confirmed a $4.4 billion investment in a new battery plant in Ohio.
“In North America, following the initiative to establish electric vehicle production system capabilities in the United States, we will now begin formal discussions to establish a comprehensive electric vehicle value chain in Canada with the support of the Canadian and Ontario governments.” Honda CEO Mibe Toshihiro said in a statement stated in a press release. “We will strengthen our electric vehicle supply systems and capabilities and focus on the future growth of electric vehicle demand in North America.”
Honda said it had “begun evaluating the scope of investment and completing negotiations with joint venture partners.” Its partner in the US factory is LG Energy Solution.
The company said it expects to finalize the plans within the next six months.
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