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Or sign-in if you have an account.Prime Minister Mark Carney participates in a press conference announcing the proposed National Electricity Strategy at the West Block on Parliament Hill in Ottawa on Thursday, May 14, 2026. Photo by HYUNGCHEOL PARK /PostmediaOTTAWA— Prime Minister Mark Carney called Honda’s decision not to move forward with its electric vehicle project in Alliston, Ont., a “disappointing decision.”Enjoy the latest local, national and international news.Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.Unlimited online access to National Post.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles including the New York Times Crossword.Support local journalism.Enjoy the latest local, national and international news.Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.Unlimited online access to National Post.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles including the New York Times Crossword.Support local journalism.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Accountor“It’s a decision that reflects the broader strategic position and financial position of that company,” said Carney, during a press conference in Ottawa on Thursday. “It’s part of a global series of decisions that they’ve taken.”Carney said despite Honda’s decision, the shift to lower emission zero emission vehicles will likely continue to progress globally and here in Canada.“But those are choices for Canadians,” said Carney, alluding to consumer sentiment in the car market.Honda Canada released a statement on Thursday, citing evolving business conditions, a change in strategy and shifting customer demand, as the reasons for the indefinite suspension of the project. The company intends to refocus its efforts on hybrid models.On Thursday, it was reported the company had recorded its first ever annual loss of $2.7 billion, due to heavy costs for its electric vehicle plants and U.S. President Donald Trump’s trade policies.News of the carmaker pulling out of the EV project was first reported by the Japanese publication Nikkei Asia last week.The project was first announced in 2022, with the federal government committing $131.6 million through the Strategic Innovation Fund, now renamed the Strategic Response Fund. The province of Ontario matched the same investment.Honda Canada was clear in its statement that it did not receive any funds that were promised by both levels of government.“While the investment project received a future funding commitment from both provincial and federal governments, no funds have been transferred to Honda as a result of that commitment,” the statement read.The auto industry has said the competitiveness of the sector in Canada remains reliant on its integration with the U.S.During an interview for CTV’s Question Period in March, Japan’s Ambassador to Canada Kanji Yamanouchi said stable access to the U.S. market is critical to ongoing Japanese investment in Canada.The auto company said it remains committed to its existing plant in Alliston, Ont., that builds Honda Civic and CR-V models. In 2025, Honda built approximately 400,000 vehicles in Canada, 198,000 were civic units and 202,000 were CR-V units. Nearly 60 per cent of Honda vehicles sold in Canada last year were hybrid.While existing employment levels remain unchanged by Thursday’s announcement, the decision does mean the loss of 1,000 jobs that were promised under the new EV plant.National PostOur website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our newsletters here. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.