Japanese carmaker delays $15 billion electric vehicle investment project in Ontario, Canada!
Honda of Canada has announced that it will delay its $15 billion electric vehicle investment project in Ontario, which includes a planned electric vehicle battery plant and the renovation of an existing assembly plant.
Ken Chiu, a spokesperson for Honda of Canada, stated that due to recent market slowdowns in the electric vehicle sector, the company has decided to postpone this large-scale investment project covering the entire supply chain by approximately two years.
In a statement released on Tuesday, he said: "As market conditions change, the company will continue to evaluate the timing and progress of the project."
He added that this delay will not affect the current employment situation at Honda's existing production plant in Alliston, Ontario.
Honda's electric vehicle projects in Canada include: a renovated vehicle assembly plant, an adjacent electric vehicle battery plant, and two key battery component plants located in other areas of Ontario.
The original plan was to retain 4,200 existing jobs while adding approximately 1,000 new positions.
According to the initial plan, after full production begins in 2028, the assembly plant is expected to produce up to 240,000 electric vehicles annually.
Honda officially announced this project in April 2024, with both the federal government of Canada and the Ontario government originally planning to jointly support the project. The Canadian federal government intended to provide approximately CAD 2.5 billion in support through tax credits, while the Ontario government promised direct and indirect funding totaling up to CAD 2.5 billion.
Japan's Honda Motor Company reported on Tuesday that its annual profit for the fiscal year ending March this year fell by 24.5% year-over-year.
The company also warned that if US President Trump's new tariffs persist, its profits will plummet by 70% during the next fiscal year ending March 2026.
Source: https://www.toutiao.com/article/1832039700968460/
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