Honda invests $166M to upgrade Ontario plant to make hybrids

Honda Canada has announced that it will invest C$166 million into retooling and expanding its Alliston, Ont. plant, which will provide more than 4000 jobs and expand its hybrid-electric production.

As noted by CP24, the announcement is part of a broader $867 million commitment to bolster its North American manufacturing network and to meet the growing demand for hybrid vehicles.

Now, this announcement comes following Honda’s decision to indefinitely pause its $15 billion EV expansion in Alliston, and after the automaker reported a $2.7 billion full-year loss, which the company says was attributed largely to the high costs of developing electric vehicles and shifting market conditions — choosing instead to focus on hybrids.

Speaking of hybrids, when Honda announced that it was shifting away from its EV plans, the company shared that it plans to launch 15 new Honda and Acura hybrid models globally by the year 2030, with North America as a key market.

The company says that investments in manufacturing facilities across Canada, Ohio, Alabama, and Georgia will help support production of these vehicles in North America.

Specifically, the Ohio plant (built between Honda’s existing East Liberty and Marysville assembly plants) is set to open in 2029 pending final government approvals, and will be able to manufacture nearly 240,000 vehicles annually.

Honda also shared that it is working with both the federal and Ontario governments on the project.

Source: CP24

Image Credit: Honda