Honda announces indefinite suspension of EV expansion in Alliston, future DCs vanish
Posted May 14, 2026
Last week's published reports out of Japan were confirmed in a statement released by Honda Canada this morning announcing the $15 billion electrification of its assembly operations in Alliston is "indefinitely suspended."
"Based on our revised strategic objectives, we have determined that an indefinite suspension of the value chain project is appropriate at this stage. We will continue reviewing our future procurement and business strategies, while carefully monitoring market conditions," according to the statement.
"The decision to suspend the project indefinitely does not impact existing HCM employment levels, nor current production.
While the investment project received a future funding commitment from both provincial and federal governments, no funds have been transferred to Honda as a result of that commitment."
Current employment or production levels at the existing manufacturing facility in Alliston, where operations continue to meet strong demand for Honda Civic and CR-V models, will not be impacted.
"Our unique approach of building vehicles where we sell allows us to confidently navigate evolving market conditions and reinforces Honda's flexible manufacturing approach and long‑term commitment to building vehicles in Canada to meet the needs of our customers."
In 2025, Honda built approximately 400,000 vehicles in Canada: 198,000 Civic units and 202,000 CR-V units were produced. All Civic sedans and CR-V units sold in Canada are built in Canada. More than 60% were hybrids (2025).
The indefinite suspension leaves the Town of New Tecumseth with a large fiscal hole as it was counting on (negotiated in camera) at least $100 million in development charges and building permit, and planning fees.
The Town had also proceeded with hiring specialized staff specifically to handle the Honda expansion file.
Honda to keep Alliston properties with intent for future use
Posted May 15, 2026
The indefinite suspension of Honda's $15 billion expansion in Alliston brings to a halt site preparation on hundreds of acres of vacant land along Industrial Parkway.
Honda spokesperson Ken Chiu, said the automaker won't let the fields go to weed by ignoring them.
"Honda intends to retain the land in Alliston in a ready state, enabling the company to move quickly should future conditions support restarting the EV value chain project," Chiu told Free Press Online.
"Having operated in Alliston for 40 years, we have always taken pride in maintaining our properties to a high standard and will continue to do so, treating the land with the respect it deserves as part of the local community."
He said Honda intends to meet its commitment to the lands, "as shared when the project was first announced, we remain committed to the environmental stewardship of the site, including planting two trees for every one removed, and will continue to uphold that commitment."