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Honda, Governments Unveil C$492 Million in Canada Plant Upgrades

The three-year project will focus on upgrading assembly lines for Honda's Civic and CR-V models, as well as a new paint shop.

Honda Motor Co. Ltd. (IW 1000/19) will spend C$492 million (US$370 million) on upgrades to its Canadian manufacturing plant, including C$84 million in government commitments.

The developments announced Monday also include a federal pledge to loosen the rules of its Automotive Innovation Fund to allow “contributions without the expectation of repayment,” according to a statement from the office of Innovation Minister Navdeep Bains.

The three-year project, with roughly C$408 million in direct Honda commitments, will focus on upgrading assembly lines for Civic and CR-V models, as well as a new paint shop with lower greenhouse gas emissions.

“As a result of these upgrades, Honda of Canada Manufacturing will continue to provide thousands of well-paying, high-quality jobs in Alliston and throughout Canada," Honda Canada Chief Executive Officer Jerry Chenkin said in a statement released by the federal government. Alliston, Ontario is about 90 kilometers (56 miles) north of Toronto.

Honda accounts for about 17% of vehicle manufacturing in Ontario, said Brad Duguid, Ontario’s economic development minister. His province and the federal government are each pledging C$41.8 million. The company employs more than 4,000 full-time and contract workers in Canada.

To date, Canada’s Automotive Innovation Fund has allocated C$426 million, including commitments in 2015 to Toyota Motor Corp.’s Canadian unit and Linamar Corp.

By Josh Wingrove

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