Honda is putting a $15-billion electric-vehicle project in Ontario on hold for two years, citing softening EV demand and growing uncertainty around tariffs affecting North American auto trade.

The company announced the delay during a quarterly earnings press conference in Japan, where CEO Toshihiro Mibe said Honda would reassess the market before moving forward.

Alongside the EV pause, Honda is shifting some CR-V production destined for the U.S. market from its Alliston, Ont., plant to its facility in Ohio, a move driven by new tariff pressures.

Honda Canada was the country’s second-largest auto producer last year, with CR-Vs accounting for nearly half of the 420,000 vehicles it manufactured. Despite the production shift, Honda says there will be no job losses in Canada.

“We’re basically swapping export destinations of a small portion of CRVs between our plants,” Honda Canada spokesman Ken Chiu told the Canadian Press.

He added that the delay in the EV project — which includes a battery plant, retooled assembly line, and two additional facilities — would not affect the 4,200 workers currently employed at the Alliston plant.

The delay is the most significant EV project pause in Canada to date. It follows similar moves by Ford, GM, Umicore, and Northvolt amid broader industry pullbacks and trade uncertainty.

Honda’s plan, originally announced in April 2024 with then-prime minister Justin Trudeau and Ontario Premier Doug Ford in attendance, had been set to receive about $5 billion in joint federal and provincial support. The project was expected to generate 1,000 jobs.

Premier Doug Ford told reporters during a news conference Tuesday in Pickering, Ont., that the automaker has reaffirmed its commitment to investing in the Alliston project to him.

Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, warned the move underscores the growing impact of tariffs on EV development.

“We hope to find a solution for Canada that restores confidence for ambitious projects,” he told CP. “All Canadian auto has benefited greatly for 40 years by Honda’s continued commitment.”

Pictured: Then-prime minister Justin Trudeau walks with Honda executives prior to news conference in Alliston, Ont., in April 2024

Photo: CNW Group/Honda Canada

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