Japanese auto giant Honda Motor Co. Ltd. are set to invest more than 400 million Canadian dollars ($302.5 million) at its plant northwest of Toronto, with the Canadian and Ontario governments kicking in additional cash as the country seeks to hold on to its dwindling share of the North American auto-production market.
The combined investment at Honda’s factory in Alliston, Ontario will come to C$492 million, the Canadian government said in a statement Monday. The money will be spend toward revamping assembly lines to make the next generation of its Civic and CR-V models, and build a new energy-efficient paint shop that aims to cut carbon emissions from current levels.
Meanwhile both the federal Canadian government and the province of Ontario said they would fund C$41.8 million each in an aim to keep 4,000 jobs.
Furthermore Canadian In the meantime novation Minister Navdeep Bains, who is accountable for industrial policy, said the government input highlights Ottawa’s efforts to back innovation in the auto sector and attract investment from the international auto sector.
On the other hand, President-elect Donald Trump is increasing pressure on car-makers to build more cars in the U.S., and vulnerable to impose tariffs on foreign-made cars. Trump has also vowed to renegotiate the terms of the North American Free-trade Agreement, or Nafta, of which Canada is a cosigner. Canadian Prime Minister Justin Trudeau said he’s open to making changes to the trade agreement with the goal of enhancing conditions for middle-income workers.