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Honda Commits to E.V.s With Big Investment in Canada
The Japanese automaker, which has been slow to sell electric vehicles, said it would invest $11 billion to make batteries and cars in Ontario.
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Honda has said that it would retool its factory in Marysville, Ohio, to make electric vehicles in 2026. The investment in Canada is a sign that the company expects the technology to grow in popularity.Credit...Maddie McGarvey for The New York Times
By Jack Ewing
April 25, 2024Updated 3:12 p.m. ET
Honda Motor on Thursday said it and several suppliers would invest $11 billion to build batteries and electric cars in Ontario, a significant commitment from a company that has been slow to embrace the technology.
Like Toyota and other Japanese carmakers, Honda has emphasized hybrid vehicles, in which gasoline engines are augmented by electric motors, rather than cars powered solely by batteries. The Honda Prologue, a sport-utility vehicle made in Mexico, is the company’s only fully electric vehicle on sale in the United States.
But the investment adjacent to the company’s factory in Alliston, Ontario, near Toronto, is a shift in direction, raising the possibility that Honda and other Japanese carmakers could use their manufacturing expertise to push down the cost of electric vehicles and make them affordable to more people.
“This is a very big day for the region, for the province and for the country,” Prime Minister Justin Trudeau said at an announcement event in Alliston, where Honda manufactures the Civic sedan and CR-V S.U.V. The investment, which will create 1,000 new jobs, is the largest by an automaker in Canadian history, he said.
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The company is also retooling its flagship factory in Marysville, Ohio, near Columbus, to produce electric vehicles in 2025. Along with LG Energy Solution, a Korean company, Honda is investing $4.4 billion in a new battery factory in Jeffersonville, Ohio.
The Rise of Electric Vehicles Tesla Will Recall Cybertruck: The company has agreed to recall nearly 4,000 of its Cybertruck pickups to fix an accelerator pedal that can get stuck, raising the risk of crashes, a federal safety agency said. Ford Slows Its Push: Ford Motor delayed the production of at least two new electric cars and said it would pivot to making more hybrids. Its decision was the latest sign that large automakers have been forced to rethink their strategy for electric vehicles because sales for those models are slowing. A Political War: Electric cars have driven into the U.S. presidential election, inflaming partisan fights that have come to define much of American culture. One reason is that President Biden has made electric vehicles central to his strategy to combat climate change. A Hybrid-First Strategy: Toyota, the world’s largest automaker, has been criticized for selling few electric vehicles. But the company’s decision to focus on hybrids is paying off financially.
The additional investment in Canada is a sign that Honda expects the technology to become more popular, despite a recent slowdown in sales. The factory in Ontario will be able to produce as many as 240,000 electric vehicles a year when it begins operations in 2028, Honda said. By 2040, Honda plans for all its vehicles to be electric, a firmer commitment than other Japanese carmakers have made.
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Jack Ewing writes about the auto industry with an emphasis on electric vehicles. More about Jack Ewing
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