'Disappointing decision': Carney reacts to Honda pulling out of $15-billion EV project in Ontario

OTTAWA— Prime Minister Mark Carney called Honda’s decision not to move forward with its electric vehicle project in Alliston, Ont., a “disappointing decision.”

“It’s a decision that reflects the broader strategic position and financial position of that company,” said Carney, during a press conference in Ottawa on Thursday. “It’s part of a global series of decisions that they’ve taken.”

Carney said despite Honda’s decision, the shift to lower emission zero emission vehicles will likely continue to progress globally and here in Canada.

“But those are choices for Canadians,” said Carney, alluding to consumer sentiment in the car market.

Honda Canada released a statement on Thursday , citing evolving business conditions, a change in strategy and shifting customer demand, as the reasons for the indefinite suspension of the project. The company intends to refocus its efforts on hybrid models.

On Thursday, it was reported the company had recorded its first ever annual loss of $2.7 billion, due to heavy costs for its electric vehicle plants and U.S. President Donald Trump’s trade policies.

News of the carmaker pulling out of the EV project was first reported by the Japanese publication Nikkei Asia last week.

The project was first announced in 2022, with the federal government committing $131.6 billion through the Strategic Innovation Fund, now renamed the Strategic Response Fund. The province of Ontario matched the same investment.

Honda Canada was clear in its statement that it did not receive any funds that were promised by both levels of government.

“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,” the statement read.

The auto industry has said the competitiveness of the sector in Canada remains reliant on its integration with the U.S.

During an interview for CTV’s Question Period in March, Japan’s Ambassador to Canada Kanji Yamanouchi said stable access to the U.S. market is critical to ongoing Japanese investment in Canada.

The auto company said it remains committed to its existing plant in Alliston, Ont., that builds Honda Civic and CR-V models. In 2025, Honda built approximately 400,000 vehicles in Canada, 198,000 were civic units and 202,000 were CR-V units. Nearly 60 per cent of Honda vehicles sold in Canada last year were hybrid.

While existing employment levels remain unchanged by Thursday’s announcement, the decision does mean the loss of 1,000 jobs that were promised under the new EV plant.

National Post

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