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.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
