Honda's Alliston plant to build next-generation hybrids as part of $1.38B investment for electric transition

Honda expansion in Alliston, Ont. The Honda plant in Alliston, Ont. plans to upgrade and retool its facility to go fully electric by 2040.

The Honda Canada plants in Alliston will upgrade and retool with plans to go fully electric by 2040.

"These investments will ensure Honda Canada builds its next generation models, like hybrids, right here in Ontario to be sold right across North America," Premier Doug Ford announced at the Alliston, Ont., plant Wednesday.

Honda Canada partnered with the federal and provincial governments to invest $1.38 billion over six years to upgrade its manufacturing plants.

The Alliston plant employs about 4,000 workers.

"By modernizing our plants for the future, we are protecting thousands of high-quality, well-paying Canadian jobs for years to come," said Jean Marc Leclerc, Honda Canada Inc. president and CEO.

Prime Minister Justin Trudeau joined the premier in Alliston for the announcement.

"As we build a cleaner future, the automotive sector is a key partner in powering the way forward," Trudeau said. "This will support thousands of jobs here at Honda in Alliston but thousands of more jobs in the local economy and across the Canadian supply chain."

The federal and provincial governments pledged $131.6 million to Honda to help it focus on electric vehicles.

Honda can produce more than 400,000 vehicles and 190,000 engines annually, including the Honda Civic and CR-V models for the Canadian and North American markets and export.

Approximately 100,000 Canadian-built Civic and CR-V units are sold annually in Canada.