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2025–2026 United States trade war with Canada and Mexico Japanese automaker Honda suspends plans to build an electric vehicle (EV) plant in Ontario , Canada , citing weaker demand
Confirmed
Honda suspending $15B EV plant in Ontario 'a disappointing decision,' Carney says Brendan Sweeney, president and CEO of Pacific Manufacturing Association of Canada, which represents manufacturers in Canada including Honda, said many of the cars made at Toyota and Honda plants in this country are hybrids and "flying off the shelves.
The Japanese automaker said last May it was pausing development at the plant, with plans to review where the EV market was at in two years. The decision to more definitively suspend the plant was first reported last week by Japanese media, but at the time Honda did not confirm the news.
And it will be a lot easier to make those decisions if we get some clarity on our trade relationship with the United States," Sweeney said. "EV demand has declined considerably, due to the rollback of environmental regulations in the U.S. and other factors," Honda said in a statement.
Still, he hopes the government can focus on securing a continued free trade deal with the U.S., which he said would help the automakers he represents in a big way. We will continue reviewing our future procurement and business strategies, while carefully monitoring market conditions," Honda said in a statement on Thursday.
Because the indefinite pause doesn't affect current jobs, Layson said there's no immediate impact on Ontario. In th e Thursday annou ncement, Honda said it hasn't received any of that promised government money.
Ottawa and Ontario said they would provide $2.5 billion each for the project. Honda's chief executive Toshihiro Mibe said on Thursday that his company would still pursue carbon neutrality, but by allocating more development and production resources to hybrids.
But given spikes in the cost of gasoline worldwide following the oil supply crunch in the Strait of Hormuz, Carney said he didn't believe the shift toward electrification was over. That's layered on top of American automotive tariffs, which have also taken a toll on carmakers, Layson said.
What's confirmed
- Honda suspending $15B EV plant in Ontario 'a disappointing decision,' Carney says Brendan Sweeney, president and CEO of Pacific Manufacturing Association of Canada, which represents manufacturers in Canada including Hond
- The Japanese automaker said last May it was pausing development at the plant, with plans to review where the EV market was at in two years.
- And it will be a lot easier to make those decisions if we get some clarity on our trade relationship with the United States," Sweeney said.
- Still, he hopes the government can focus on securing a continued free trade deal with the U.S., which he said would help the automakers he represents in a big way.
- Because the indefinite pause doesn't affect current jobs, Layson said there's no immediate impact on Ontario.
- Ottawa and Ontario said they would provide $2.5 billion each for the project.
What's still developing
- The Japanese automaker said last May it was pausing development at the plant, with plans to review where the EV market was at in two years.
- The decision to more definitively suspend the plant was first reported last week by Japanese media, but at the time Honda did not confirm the news.
- We will continue reviewing our future procurement and business strategies, while carefully monitoring market conditions," Honda said in a statement on Thursday.
- Ottawa and Ontario said they would provide $2.5 billion each for the project.
- In th e Thursday annou ncement, Honda said it hasn't received any of that promised government money.
- "EV demand has declined considerably, due to the rollback of environmental regulations in the U.S. and other factors," Honda said in a statement.
- Honda's chief executive Toshihiro Mibe said on Thursday that his company would still pursue carbon neutrality, but by allocating more development and production resources to hybrids.
- That's layered on top of American automotive tariffs, which have also taken a toll on carmakers, Layson said.