Honda Canada Inc. will invest $492 million in its plant in Alliston, Ontario, the automaker said in an announcement in Monday which coincided with the long-awaited changes to the federal government's automotive innovation fund. The investment will be used to allow the company to upgrade its Ontario manufacturing facilities and improve its manufacturing carbon footprint, which is part of Honda's initiatives globally.
The Government of Canada and the Government of Ontario government will both provide Honda Canada with grants of up to $41.8 million for upgrades and research and development at its operations, representing 17 percent of Honda Canada's investment. The government money, along with the money from Honda itself, will go toward technology for vehicle-assembly, not to mention the design and construction of a new paint shop that is expected to reduce greenhouse gas emissions in half.
These investments will maintain jobs in Canada by supporting advanced and clean technologies, and will allow Honda's plants in Alliston, Ontario, to secure their intercontinental competitiveness. Honda Canada employs more than 4,000 both contracted and full-time associates, and it produced more than 390,000 Civic and CR-V models and 220,000 engines in 2015.
These funding shows the Government of Canada's support for innovation in the auto industry and its commitment to attract other investors significantly in this important sector of the economy. With these new investments, Honda Canada will continue to be a formidable benefactor to the economic well-being of Canada's automotive industry.
The investment is provided through the Automotive Innovation Fund (AIF), which is extended to 2020-2021 in Budget 2016. The AIF provides backing for strategic research and development projects that promote greener, more fuel-efficient vehicles.
The Government of Canada's Innovation Agenda will promote cleanliness, growth, quality jobs and higher living standards for the middle class. The funding for Honda Canada and the changes to the AIF are key elements of this plan.