Honda’s manufacturing facility in Alliston, Ont. The carmaker says it will expand production of hybrid-electric and gas-powered vehicles at the plant.HO/The Canadian Press
Honda HMC-N is spending $166-million at its auto plant in Alliston, Ont., to restart its engine shop and retool for updated models of hybrid-electric and gas-powered cars.
The investment will help the automaker meet demand while maintaining 4,000 jobs at the plant northwest of Toronto, Honda said on Monday.
The engine factory, which closed in 2024, will supply power motors to about one-quarter of the factory’s total production of Civics and CRVs. These vehicles will be sold in the Canadian market. Most of the factory’s cars, which are for export to the United States, will continue to use the engines made by Honda in Ohio.
Canadian-made content is exempt from Ottawa’s 25-per-cent retaliatory tariffs on U.S. automotive goods.
“This renewed investment reinforces Canada’s critical role in Honda’s North American growth and hybrid-electric vehicle strategy and helps position our operations for long-term competitiveness and future opportunities,” said Dave Jamieson, chief executive officer of Honda Canada Inc., in a statement.
The investment announced Monday is part of $867-million that Honda plans to invest in Alliston over the next few years.
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