Honda expected to announce multi-billion dollar deal to assemble EVs in Ontario: sources

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Honda expected to announce multi-billion dollar deal to assemble EVs in Ontario: sources
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The company logo shines off the grille of an unsold Honda outside a dealership on Sunday, Sept. 12, 2021, in Highlands Ranch, Colo. The company is recalling 52,000 vehicles in Canada over a seat belt issue.

Japanese car marker Honda is expected to announce a multi-billion dollar deal to build electric vehicles and their parts in the province of Ontario, government sources confirmed to CBC News.Honda Motor Co. is expected to announce plans to build EVs in Ontario, according to sources. Japanese automaker Honda is expected to announce a multi-billion dollar deal to build electric vehicles and their parts in the province of Ontario, government sources confirmed to CBC News.

Last week's budget has yet to pass parliament, but previewed a EV supply chain investment tax credit that likely acted as a sweetener for Honda. The government is proposing a 10 per cent tax credit on the cost of buildings used in three keys area of the EV supply chain: assembly, battery production and cathode active material production.

"Honda does not make speculative term bets," said Automotive Parts Manufacturers' Association president Flavio Volpe, reacting to the news. "In almost 40 years of making cars in Canada without failure or retreat, a Honda supply contract is extremely bankable."

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