Honda will spend $1.1 billion to retool its factory in Alliston, Ontario, Canada so it can produce hybrid vehicles.
The site has been building the CR-V since 2012, as well as the Civic sedan and four-cylinder engines for both models. A portion of Plant 2 at the facility is already in the process of being retooled and should be ready to start building hybrid versions of the CR-V this summer and for the 2023 model year.
According to Honda Canada chief executive Jean Marc Leclerc, the company is adding hybrid production in Canada as it expects demand for such vehicles to increase “pretty drastically” over the coming years.
Read More: Honda Going To Sell Only Electric And Fuel-Cell Vehicles Globally By 2040
Auto News understands that the Ontario and federal governments will each provide $103 million in funding the retooling.
Honda is planning to sell nothing but battery-electric and fuel-cell electric vehicles by 2040. It expects BEVs and fuel-cell vehicles to account for 40 per cent of its North American sales by 2030 and 80 per cent in 2035. A plethora of new models will be launched on Honda’s EV-specific e:Architecture platform.
One of the most important new EVs from Honda will be the Prologue SUV. The vehicle is expected to hit showrooms in 2024 and will be one of two Honda models based on GM’s Ultium electric platform. The company is targeting annual sales of 70,000 units of the Prologue which will be built at GM plants and while the platform and drivetrain will be developed by GM, Honda will be in charge of the SUV’s exterior and interior design. Honda will also launch a second SUV using GM underpinnings shortly after the Prologue arrives.
