From Yahoo Finance: 2025-05-14 10:47:00

Honda is delaying its investment in building an electric vehicle supply chain in Canada by two years due to tariffs and slow EV demand in North America. The $11 billion plan included an EV factory and battery factory in Ontario with joint venture partners Posco Future M Co and Asahi Kasei.

The automaker is shifting vehicle production to the U.S. to avoid new import duties, which is expected to impact profits in the upcoming fiscal year. Operating profit is forecasted to fall by nearly 59%, with margins declining by over half. Honda plans to increase production capacity in the U.S.

Honda will reevaluate its Canada investment plans based on market conditions, with CEO Toshihiro Mibe stating they will observe unfolding events and make decisions accordingly. The postponed investments would have been Honda’s largest ever in Canada.

The decision to delay investments in Canada has drawn criticism from Ontario Premier Doug Ford, who expressed optimism about Honda maintaining production in the country. Ford vowed to protect jobs but also stated he would hold automakers accountable for moving production out of Canada.

Even before tariffs, Honda planned to increase EV production in the U.S., retooling facilities in Ohio to create an EV production hub. The automaker aims to have each North American facility play a critical role in its electrified future. Plans in Ohio have been revised to allow for flexibility in production line adaptations.



Read more at Yahoo Finance: Honda postpones $11B EV production investment in Canada