Ford vows to hold Honda 'accountable' after it postpones $15B Ontario EV project

Ontario Premier Ford is vowing to hold auto companies that pull out from Ontario "accountable" after news that Honda is putting a major electric vehicle supply chain planned for the province on hold.

The move is the latest blow for Ontario's auto sector. General Motors announced in it will be laying off hundreds of workers at its Oshawa, Ont. plant later this year in recent weeks.

It also raises big financial questions for Ford's government. His Progressive Conservatives are set to release this year's budget on Thursday, and it was expected to have significant funding to begin mining critical minerals that are crucial to building electric vehicles.

"We're going to hold them accountable, each auto-manufacturer," Ford said in response to Honda's announcement.

"Were going to make sure they're held accountable and they continue manufacturing automobiles here in Ontario."

Ford spoke at a news conference at Tuesday morning in Pickering alongside Finance Minister Peter Bethlenfalvy, Transportation Minister Prabmeet Sarkaria, and Minister of Energy and Mines Stephen Lecce.

Japan's Honda Motor said Tuesday it would put on hold a plan to build an EV supply chain in Canada after forecasting a 59 per cent profit decrease, amid the uncertainty stemming from U.S. President Donald Trump's tariffs.

"The company will continue to evaluate the timing and project progression as market conditions change," Honda Canada spokesperson Ken Chiu said in a statement Tuesday.

"When I talked to Honda, they promised us they're going to continue on with that expansion," Ford added.

"We're very confident that we'll continue producing Honda vehicles here in Ontario."

Honda said it would put on hold for "approximately two years" a $15-billion electric vehicle investment project in Ontario to build an EV supply chain in Alliston. That decision was taken due to the current slowdown in EV demand, it said.

"This decision has no impact on current employment levels or production at the Honda manufacturing facility in Alliston," Chiu said.

Honda's EV project in Canada includes a retooled assembly plant, an electric vehicle battery plant in close proximity, as well as two key battery parts facilities located elsewhere in Ontario.

The project was expected to see the two main plants create 1,000 jobs on top of retaining the existing 4,200 jobs at the assembly plant.

Under the original plan, the plant was set to produce up to 240,000 vehicles per year when fully operational in 2028.

WATCH | Here's how to tell if a vehicle was built in Canada:

With General Motors announcing it will cut a shift at its Oshawa assembly plant starting this fall, the president of the Automotive Parts Manufacturers' Association spoke on Metro Morning about how Canadians can support cars that are made within the country.

Following Honda's announcement, Ontario's minister of economic development, job creation and trade said the government remains in close contact with Honda, adding that the company has reaffirmed its commitment to the project.

"Our government will continue to fight every single day to protect the progress we have made in our auto-manufacturing sector and secure good-paying jobs and support for workers and their families," said Minister Vic Fedeli.

The project was first announced in April 2024 at an event that included then-prime minister Justin Trudeau and Premier Ford, and was to receive support from the federal and Ontario governments.

Ottawa was set to give the Japanese automaker around $2.5 billion through tax credits, while Ontario committed to provide up to $2.5 billion in support directly and indirectly.

Honda's forecast is the latest signal of the difficulty car makers are having navigating Trump's tariffs on foreign-made automobiles at the same time the industry is being hit by the rise of Chinese EV producers.