Honda (HMC) Postpones $15-Billion Electric Vehicle Plant in Canada

Japanese automaker Honda Motor Co. (HMC) has postponed a $15-billion electric vehicle (EV) project in Canada as it shifts more production to the U.S. due to American import tariffs.

In announcing the Canadian manufacturing pause, Honda cited market demand. The company also said its is shifting more production of its popular CR-V model to its plant in Ohio. Postponement of the electric vehicle project north of Toronto is the biggest project delay yet in Canada after U.S. President Donald Trump announced tariffs of as much as 25% on foreign vehicles.

In an earnings call on May 13, Honda CEO Toshihiro Mibe said the company will look at where the electric vehicle market is in two years before deciding whether to proceed with the Canadian investment. While the CEO cited electric vehicle demand for the delay, he also said the company’s move to shift CR-V production to the U.S. is a result of Trump’s tariffs.

Job Creation

Honda was the second largest automotive manufacturer in Canada during 2024, producing 420,000 vehicles, and the CR-V sport utility vehicle makes up close to half that production. The postponed electric vehicle project included a battery plant, a retooled assembly line, and two manufacturing plants.

The halt to the electric vehicle expansion has no impact on the 4,200 people who currently work at the Honda manufacturing plant outside Toronto, said the company. However, the new $15-billion electric vehicle project was expected to create 1,000 news jobs. Honda executives have said that U.S. tariffs are expected to cut $4.40 billion from its operating profit this Fiscal year.

HMC stock has gained 6% in 2025.

Is HMC Stock a Buy?

Honda Motor Co. is not widely followed by Wall Street analysts. So instead we’ll look at the three-month performance of HMC stock. As one can see in the chart below, Honda’s share price has gained 7% in the last 12 weeks.