Honda, Governments Unveil C$492 Million in Canada Plant Upgrades

Honda Motor Co. Ltd. will spend C$492 million ($370 million) on upgrades to its Canadian manufacturing plant, including C$84 million in government commitments.

The developments announced Monday also includes a federal pledge to loosen the rules of its Automotive Innovation Fund to allow “contributions without the expectation of repayment,” according to a statement from the office of Innovation Minister Navdeep Bains.

The three-year project, with roughly C$408 million in direct Honda commitments, will focus on upgrading assembly lines for Civic and CR-V models, as well as a new paint shop with lower greenhouse gas emissions.

“As a result of these upgrades, Honda of Canada Manufacturing will continue to provide thousands of well-paying, high-quality jobs in Alliston and throughout Canada," Honda Canada Chief Executive Officer Jerry Chenkin said in a statement released by the federal government. Alliston, Ontario is about 90 kilometers (56 miles) north of Toronto.

Honda accounts for about 17 percent of vehicle manufacturing in Ontario, said Brad Duguid, Ontario’s economic development minister. His province and the federal government are each pledging C$41.8 million. The company employs more than 4,000 full-time and contract workers in Canada.

To date, Canada’s Automotive Innovation Fund has allocated C$426 million, including commitments in 2015 to Toyota Motor Corp.’s Canadian unit and Linamar Corp.

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