Honda Canada says expansion not scrapped, postponement continues

 

Posted May 6, 2026

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Honda Canada is distancing itself this morning from a published report out of Japan suggesting the automaker is abandoning its plans for a $15 billion electrification of its assembly operation in Alliston due to a soft electric vehicle market.

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Honda is currently in the first year of a two-year of a self-imposed postponement of the project announced in 2025 following American President Donald Trump's imposition of tariffs on vehicles imported into the U.S. That was on top of the EV incentives Trump eliminated which helped slow sales.

 

"The content of the article was not released by Honda, and we have nothing to report at this time," according to a statement by Honda Canada.

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The $15 billion expansion was announced in April 2024 and included a new facility for EV assembly, as well as a separate electric battery operation. It was expected to create 1,000 new direct jobs, while maintaining the current workforce of 4,200 associates.

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​The reports out of Japan also suggested Honda would be facing paying more than $10 billion in compensation for cancelling the expansion.

 

However, the Honda Canada statement continues to point to the two-year delay as the current state of affairs, reiterating it's all related to the sluggish EV market.

"The company will continue to evaluate the timing and project progression as market conditions change. This decision has no impact on current employment levels or production at the Honda manufacturing facility in Alliston, Ontario."

 

Ken Chiu, Communications Honda Canada, told Free Press Online this morning, "So nothing tangible has really changed. Not expecting mass job losses as you note as we aren't making EVs where the numbers are soft."