In the light of American rates, Honda said on Monday that it would move the production of one of its popular ontario vehicles to an American factory and a $ 11 billion plan to make electric vehicles and batteries in Canada.
The announcement came less than a month after Honda had refused a report in the Japanese media that President Trump’s rates would force it to withdraw to Canada.
It is also a major challenge for Prime Minister Mark Carney of Canada, who won a Astonishing victory In last month’s elections after he had portrayed himself as the leader who is most suitable for dealing with President Trump and the trade war between the two countries.
The United States have imposed a rate of 25 percent on many Canadian cars and car parts.
The Chief Executive of Honda, Toshiro Mibe, said in a press conference in Japan that the decision to move the production of the CR-V Sport Utility vehicle to the United States was part of the company’s plans to “optimize” production to reduce the effects of rates.
He blamed the fault of the market for electric vehicles for the decision to postpone an extension of $ 11 billion of the Ontario factory complex, which would have added the production of batteries and electric vehicles.
The expansion, which was supported by substantial financial incentives of the governments of Canada and Ontario, was characterized by Justin Trudeau last yearThe prime minister at that time, as the biggest investment by a car maker in Canadian history. It was expected to have 1,000 people in service and was the characteristic part of a series supported by the government to move the auto-industry from Canada to electric vehicles.
The effect of the CR-V production movement was not immediately known. But like all car assembly lines in Canada, the majority of CR-Vs in Canada are sent to the United States.
Honda Canada did not immediately respond to a request for comment. It currently employs around 4,200 people at its factory in Alliston, Ontario, who also builds social sedans and engines.
Mr Carney’s office did not immediately respond to a request for comments on Honda’s decisions. He will swear on Tuesday in his new cabinet.
The announcement of Honda is the last in a series of movements of the car industry to withdraw plans for expansion in Canada after imposing rates by the United States.
Stellantis has suspended the conversion of a factory in a suburb of Toronto to make electric and gasoline driven jeeps. It has closed its factory in WindsorOntario, who makes minibuses and Dodge Muscle Cars, for a total of three weeks and also reduces the production schedule in the coming weeks.
The Canadian subsidiary of General Motors has suspended the production of an electric commercial van in Ontario. The only Canadian assembly factory of Ford, in Oakville, Ontario, is inactive for almost a year after the company had left plans to make electric vehicles there. Instead, the plant will eventually start making pick-ups of gasoline.
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