TORONTO — Honda Motor plans to more definitively halt development on its $15 billion electric vehicle complex in Canada, according to a news report from Nikkei Asia.
The Japanese automaker paused development in May last year, saying at the time that the company would review where the EV market was in two years before deciding the future of the project.
Sluggish U.S. demand for EVs is leading the automaker to freeze the Canadian EV investment and make hybrids the centre of its North American strategy, according to the report from Nikkei Asia.
Honda already produces hybrid Civics and CR-Vs at its plant in Alliston, Ont., alongside conventional gas models.
Asked about the report, Honda Canada said in a statement that it had nothing to report at this time.
Industry Minister spokeswoman Gabrielle Landry said the government remains in regular contact with Honda but did not say whether the company had provided an update on its plans.
She said the automotive sector both in North America and globally is experiencing significant change.
“American tariffs and changes to U.S. domestic policies are creating real pressures for automakers, prompting some to delay or scale back investments in electric vehicle and battery projects,” Landry said.
Major U.S. policy shifts, including announced plans to weaken fuel efficiency standards and removing financial supports for EV adoption, have reduced expected uptake of the zero emission vehicles.
Landry said Canada’s auto strategy launched in February aims to transform Canada’s vehicle industry to benefit from electrification, while the government continues to support and protect existing automotive facilities.
Honda’s decision to halt development is just one of many EV projects that have fizzled out in Canada.
General Motors ended production of its BrightDrop electric delivery van last year, Ford Motor Co. has pivoted from EVs to pickup truck plans at its Oakville, Ont. plant and several battery-related plants have been shelved.
Conservative MP Adam Chambers said the latest Honda decision shows the Liberal government’s bet on EVs hasn’t worked.
“Broadly speaking, I think it’s an indictment of the government’s auto policy,” he said in Ottawa Wednesday.
“Instead of rethinking their entire policy, they are doubling down.”
He said the government needs to focus on securing access to the U.S. vehicle market to ensure there’s a Canadian auto industry going forward.
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