Industry Minister Mélanie Joly says Honda Canada’s CEO assured her that no Canadian jobs will be lost or modified, despite the company delaying $15 billion in electric vehicle (EV) investments in the country.
Joly said in a statement posted to social media on May 14 that she spoke with Honda Canada President and CEO Dave Jamieson, who told her that “workers will keep their good-paying jobs and working conditions won’t change.”
“He also confirmed that Honda is still fully committed to major EV investments right here in Canada, and we’ll work together to make that happen,” she added.
Honda CEO Toshihiro Mibe announced on May 13 that the company would be forced to postpone some large-scale investments in Canada for two years after the EV market had “slowed more than initially expected.”
Honda’s Canadian projects include an EV manufacturing plant and a battery manufacturing facility located in Alliston, Ont. Construction had started on the factory last fall and was set to begin production in 2028, at which point it would produce an estimated 240,000 EVs annually.
Honda had also begun work on a separator factory in Port Colborne, Ont., set to begin production in 2027, as well as a cathode active material plant and precursor cathode active material factory at another Ontario location in partnership with Posco Chemicals.
Both the federal government and the province committed to a $2.5 billion investment in the Japanese automotive manufacturer’s Ontario supply chain.
Honda Global said its profit for the latest financial year ending March 31 had fallen 24.5 percent from the year prior, and that U.S. President Donald Trump’s tariffs would further impact its earnings. The president has imposed 25 percent tariffs on automobiles exported from Canada and Mexico, and Canada has put reciprocal tariffs on U.S. vehicles. The tariffs apply to vehicles that are not compliant with the North American free trade deal.
Honda Canada previously said on April 15 that it was not considering changes to its manufacturing in Canada “at this time” and that its factory in Alliston would operate at full capacity “for the foreseeable future.” The company added that the Alliston facility was the second-largest auto manufacturer in Canada by volume in 2024. It said that thanks to domestic sales being up 9 percent in the first quarter of 2025, “Canadian production will remain at full capacity.”
The federal government announced on April 15 that it would allow automakers to import a certain number of U.S.-assembled vehicles into Canada tariff-free. However, Ottawa said that the relief given to Canadian automakers is contingent on their continuing to produce vehicles in Canada and completing their planned investments.
Ontario Premier Doug Ford pledged on May 13 to hold “accountable” auto companies that have received government funding but abandon plans to invest in and employ workers in Canada.
“We’re going to make sure that they’re held accountable and they continue manufacturing automobiles right here in Ontario,” Ford said, adding that Honda had “promised us they’re going to continue on with their expansion.”
