Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeElectric VehiclesTransportationAutosHonda suspends Ontario EV plant ‘indefinitely’ after posting first-ever lossHonda has struggled to keep up with auto competition without the models to compete for hybrid demand in the U.S.Last updated 1 day ago You can save this article by registering for free here. Or sign-in if you have an account.The logo of Japanese automaker Honda is pictured on a billboard at a Honda dealership in Tokyo on May 14, 2026. Photo by Kazuhiro NOGI / AFP via Getty ImagesHonda Motor Co. has confirmed it will “indefinitely suspend” construction of a postponed $15-billion electric vehicle plant in Ontario a day after the company reported its first-ever yearly loss.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.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.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.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.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 AccountorBilled as the largest foreign investment in Canadian history, Honda originally planned to build a facility near Alliston, Ont. that would be capable of producing 240,000 EVs a year once complete in 2028. The automaker paused construction in 2025 due to waning EV demand.“This decision does not affect current employment or production levels at our existing manufacturing facility in Alliston, Ontario, where operations continue to meet strong demand for Honda Civic and CR-V models,” Honda Canada Inc. said in a statement.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Despite evolving business conditions, Honda’s flexible manufacturing approach remains an industry hallmark, supporting 40 years of continuous Canadian production and the future of our Alliston, Ontario facility.”Asian business news outlet Nikkei first reported the plans to shelve the project last week, adding that Honda was pivoting to more hybrid models.Honda was to receive federal and provincial support, but said Thursday “no funds have been transferred to Honda as a result of that commitment.”The suspension comes at a difficult time for the automaker. This week, Honda reported a US$2.6-billion shortfall during the last fiscal year, the first annual loss since the company’s founding in 1948.Honda has struggled to keep up with auto competition without the models to compete for hybrid demand in the U.S., while Chinese automakers take a bite out of the EV market.“Our biggest regret is not being able to react to rapid changes in the industry,” Honda chief executive Toshihiro Mibe told reporters on Thursday. “We need to return to a path that leads to sustainability.”With files from Bloomberg News 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.