Honda of Canada Mfg. (HCM), a division of Honda Canada Inc., will invest $1.38 billion over six years to upgrade its Alliston, ON, manufacturing plants, taking an important step towards the car maker’s plans for hybrid electric vehicle production.
The plants will implement new technologies, processes, supply chain and vehicle research and development programs, as a part of Honda’s goal to reach zero emissions by 2040.
Alliston will become the North America lead plant for the all-new 2023 CR-V Hybrid crossover. This will bring Honda’s total Canadian facilities investments to more than $6.5 billion since 1986, when Honda became the first Japanese auto maker to build a Canadian manufacturing facility.
HCM is partnering with both the governments of Canada and Ontario, with each level of government providing an equal and conditional contribution of $131.6 million.
“This represents an important milestone for Honda as we move forward in our ambitious vision to make battery electric vehicles represent 100 per cent of our North America vehicle sales by 2040,” said Jean Marc Leclerc, President and CEO of Honda Canada.
The new hybrid products will reduce GHGs by 30 per cent compared to traditional gasoline powered vehicles. The shift to these new products aligns with Canada’s overall GHG reduction goals and Honda’s global goal of realizing carbon neutrality for its entire business, including products and operations, by 2050.
Honda of Canada Mfg. has the capacity to produce more than 400,000 vehicles and 190,000 engines annually, including the Honda Civic, Canada’s best-selling passenger car for 24 consecutive years, and CR-V models for the Canadian and North America markets, as well as for export. Approximately 100,000 Canadian-built Civic and CR-V units are sold annually in Canada.