News of Honda’s historic $15-billion deal to construct its first comprehensive electric vehicle supply chain in Ontario is rousing local residents and officials about the potential boost to business and jobs in the area.
Honda Canada announced Thursday alongside Prime Minister Justin Trudeau and Ontario Premier Doug Ford that it will build four new manufacturing plants in Ontario, including an electric vehicle assembly plant and a standalone battery manufacturing plant at its current facilities in Alliston, Ont., a small community of 23,000 residents between Toronto and Barrie.
The Japanese company already employs 4,200 people in its existing Alliston facility, but statements from Honda and both the federal and provincial governments say the facility’s two new plants will produce up to 240,000 vehicles per year and create more than 1,000 “well-paying manufacturing jobs” once fully operational in 2028.
“The opportunities for the local residents are going to be absolutely staggeringly fantastic,” said Richard Norcross, mayor of New Tecumseth, which comprises the communities of Alliston and nearby Beeton and Tottenham.
Richard Norcross, mayor of New Tecumseth, which comprises the communities of Alliston and nearby Beeton and Tottenham, says the Alliston plant has created approximately eight ancillary jobs for each assembly line position. (Meagan Fitzpatrick/CBC News)
He says Honda has been a pillar of the community since the first Accord rolled off the assembly line in 1986, and said substantial donations from the company have helped the local hospital make expansions and buy new equipment.
But it’s the future that excites Norcross most.
“We just secured great-paying jobs for probably the next four generations of people,” added Norcross, who expects knock-on effects for the community when Honda finishes the facility overhaul.
Is Honda’s $15B Ontario EV investment a good idea?
With interest in electric vehicles seemingly lagging, is Honda’s $15-billion plan to build four electric vehicle plants in Ontario a good investment? CBC’s Erica Johnson asks industry experts David Booth and Daniel Breton to break down the risk versus reward.
Ancillary jobs include work in local restaurants, shops, retail outlets and supply companies, says Norcross, adding that since the announcement, he has received texts and phone calls from community and business leaders anticipating staff increases.
Lachlan McGurk, who owns a flower and chocolate shop in historic downtown Alliston and chair of Alliston’s business improvement association, shares that sentiment.
“All of those jobs spawn new jobs and new businesses to support the operations at Honda,” he says.
McGurk’s optimism is nevertheless guarded by some recent history.
Lachlan McGurk is the chair of the Alliston Business Improvement Association. (Yanick Lepage/CBC News)
In 2011, Ford shut down its plant in St. Thomas, a southwestern Ontario community, with thousands ultimately losing their jobs.
Seven years later, GM announced it would shut its Oshawa Assembly Plant permanently, putting some 2,400 people out of work.
“This boost is a welcome one, but Alliston will never take Honda for granted.”
Still, the investment is characterized by the Ford government as the largest in Canadian history, with one expert saying it is likely the largest in North American history as well.
“For comparison, Ford Motor Company did a massive investment in Kentucky and Tennessee two years ago … for $11 billion,” said Flavio Volpe, president of the Automotive Parts Manufacturers Association.
The announcement Thursday includes $5 billion in government assistance, half from the feds through tax credits and half from Ontario in direct and indirect incentives.
Honda Canada employs 4,200 people in its Alliston facility, but statements from Honda and both the federal and provincial governments say the new plants will produce up to 240,000 vehicles per year and create more than 1,000 “well-paying manufacturing jobs” once fully operational in 2028. (Cole Burston/The Canadian Press)
It follows a series of announcements to build up the electric vehicle industry in Canada, including for a VW battery plant now under construction in St. Thomas, Ont. and a Stellantis battery plant in Windsor, Ont.
Mike McEachern, a former mayor of New Tecumseth and executive director of Focus, a local employment agency, is not worried about Alliston suffering the same fate as Oshawa or St. Thomas.
“You don’t have a great manufacturer in the community unless you have the labour force to support it,” said McEachern.
Infrastructure and housing needed: former mayor
But, he adds, the town will need to continue with infrastructure improvements and, like many municipalities in the province, is struggling with housing stock.
“We need to be able to house people as close to where they work as possible because it’s a better quality of life all around,” said McEachern.
Mike MacEachern is the director of Focus, an employment agency in Alliston, Ontario (Yanick Lepage/CBC News)
McGurk says Simcoe County, which includes New Tecumseth, is one of the fastest-growing in Ontario and the investment works in lock step with the planned growth for the area.
But, he warns, some employers could see the Honda investment as a double-edged sword if population growth stalls and the car manufacturer monopolizes a lagging labour supply.
Local residents who spoke to CBC News after the announcement echoed the balance between the hope the new facilities bring to the town and the work needed to accommodate resulting growth.
“I hope the jobs it creates will be for people who are really struggling in this area,” said Margaret Ringland, who would like to see economic windfall from the new plants go towards social housing.
“It’ll be good for the community,” said Anthony Osborne, a former Chrysler manufacturing employee who recently moved to Alliston.
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
