Honda to invest more than $370 mil in Canada plant

Honda will invest Can$492 mn in its Alliston factory north of Toronto, enabling the facility to assemble new models of the Civic (pictured) and the CR-V vehicles AFP

MONTREAL —

Honda will invest Can$492 ($372 million) in its Alliston factory north of Toronto, with financial support from the federal government and province of Ontario, Economic Development Minister Navdeep Bains said.

The governments of Canada and Ontario will each contribute Can$41.8 million over three years.

The investment will enable the facility to assemble new models of the Civic and the CR-V vehicles.

The Japanese automotive group will also construct a new paint shop that will help cut greenhouse gas emissions from the paint process by 44%, Honda Canada CEO Jerry Chenkin said.

The improvements will help save 4,000 jobs at Honda’s facilities—which assembled 385,000 vehicles last year—and “further anchor Honda’s presence in Canada,” the government of Canada said in a statement released on Monday.

The announcement comes as U.S. President-elect Donald Trump is putting pressure on automakers with facilities on U.S. soil to stop relocating production to Mexico, where a number of factories opened following the enactment of the North American Free Trade Agreement (NAFTA).

Signed by Canada, the United States and Mexico, the agreement went into force in 1994.

Trump has so far held off criticizing investments in Canada, where labor costs are similar to those in the United States. Manufacturers with facilities in Canada have also relocated plants to Mexico thanks to NAFTA.

The Republican billionaire, who has vowed to renegotiate NAFTA, is “a potential risk” for the Canadian automotive industry, Ontario Economic Development Minister Brad Duguid said on Monday.

However, he said he is convinced the U.S. president-elect would do nothing to hinder the industry’s cross-border supply chain, which links several factories in Ontario to others in Michigan and Ohio, crucial swing states that voted for Trump by small margins.

The three major American automakers committed to investing Can$1.5 billion in their plants in Ontario when they reached collective bargaining agreements with employees last year.

© 2017 AFP

  • 5

    JonathanJo

    It will indeed be interesting to see whether D Trump comments on this investment in neighbouring Canada.

  • 5

    Speed

    Is Trump going to stamp down on building/expanding factories in Canada as he has on companies doing the same in Mexico?

  • 5

    PTownsend

    The Republican billionaire, who has vowed to renegotiate NAFTA, is “a potential risk” for the Canadian automotive industry,

    He's a 'potential risk' for all life forms.

    Will Trump try to take credit for this too? It wouldn't surprise me to see him and his team of spin doctors find a way to show how this move - his move - is creating millions of jobs for Americans. They won't explain how knowing Trump true believing followers will believe anything he and his media retainers say.

  • -10

    otherworldly

    Honda is miscalculating very badly.

  • 7

    Strangerland

    Honda is miscalculating very badly.

    How so, by daring to invest money somewhere other than the USA?

  • 7

    Thunderbird2

    Honda is miscalculating very badly.

    Why? Trump isn't the Master of the World you know... he's just some loon that Americans have inexplicably elected to be their president. He can't control which cars are built where.

  • 1

    Brian Wheway

    If DT want investment from other countries, like Japan, a better way would be to give a good reason, a heavy subsidy, help to relocate, new training for new employees, tax breaks, reciprocating trade deals with other countries. bulling someone by enforcing heavy taxes if they don't comply is probably not the best way forward!!

  • 2

    randomnator

    Honda is miscalculating very badly.

    they aren't shifting jobs from the US out. They are merely expanding **existing **operations in Canada. Did you read the article or just the headline?

  • 0

    GW

    Honda is miscalculating very badly.

    In case you don't know Honda has been in Alliston for many many years, this isn't a brand new investment if you will

  • 0

    Cliffy

    Until they realize the cost of electricity in Ontario. Thanks to the current regime's incompetent (Liberal) on managing everything under the sun. There are people struggling on either pay their electric bills or put food on the table. There is a very good reason why Amazon choose Quebec rather than Ontario to set up their Data Center. Unfortunately, people has stockholm syndrome (or just a masch***), so they just ignore their corruptions and kept voting for them. Too bad, those people also took the rest of the folks who are sane with them.

  • 1

    ThePBot

    Build a wall at the US-Canadian border!

    Canada: Eh Okay!

  • 1

    toshiko

    Japanese corporations are not investing cheap labor instead of South America, they prefer Canada and north USA. r

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