The tariffs are causing concrete challenges to all kinds of carmakers at the moment
The recent tariffs have caused Honda to pause its EV expansion plans in Canada for two years. With this, the Japanese auto giant becomes the latest carmaker to demonstrate its struggles because of the tariff war. Honda barely made its mark on the EV scene, both in Canada and the U.S. However, the plans were ambitious with a potential investment of $10.7 billion.
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Honda Halts EV Expansion Plans For Canada
For a while, we have seen Honda showcase its upcoming EVs under the 0 Series concept. This massive investment was planned for the retooling of its existing manufacturing plant in Canada, along with setting up a few battery and cell manufacturing plants for the production iterations of the 0 Series. In essence, it would have been the Canadian version of Honda’s Ohio EV hub. Unfortunately, all that has been postponed by at least 2 years.
This plant was slated to produce up to 240,000 vehicles per year by 2028. Thankfully, this measure won’t jeopardize the existing jobs at Honda. Nevertheless, it will also halt the 1,000 new Canadian jobs that were related to this expansion. The Japanese car marque also said that it will continue to evaluate the timing and project progression as market conditions change.
Note that in addition to the tariffs, the slower demand for EVs in the U.S. and Canada is also a contributing factor to this development. Honda also said that if these tariffs continue, it might have to reshuffle its operations to move more production out of Canada. This will ensure that the profits are not compromised due to new tariffs.
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Learn Electric Cars Says
This is yet another tragic story of a legacy carmaker having to take tough decisions to tackle the aftermath of the increased tariffs. I believe it will take some time for everyone to adjust to the new norms and make decisions based on the evolving situation. Let us hope that this entire rejiggering doesn’t last too long.