Honda to invest $11 billion to set up an EV hub in Canada

Honda Motor Co Ltd says it will invest $11 billion to set up an EV hub in Ontario, Canada. Shares of the automaker are in the red at writing. 

Honda expects vehicle production to begin in 2028

The investment, as per the Japanese firm, will establish a “comprehensive EV value chain” with new assembly and battery facilities as well as factories to support production of electric vehicles. 

Honda expects vehicle production at the new plants to commence in 2028. Toshihiro Mibe - its chief executive said in a press release today:

Honda shares are down over 10% versus their year-to-date high at writing.

Here's what the investment means for Canada

Honda Motor will have a capacity of producing 240,000 vehicles per year at its new hub once it’s fully operational. The automaker is committed to exclusively produce EVs only by 2040. 

Note that the investment it announced today is the largest ever for the automotive industry of Canada, as per Justin Trudeau - Prime Minister of the Great White North. The project is estimated to create some 1,000 new jobs as well. 

The New York listed firm had abandoned plans of building lower cost electric vehicles with General Motors last year as Invezz reported here. 

Wall Street currently has a consensus “overweight” rating on Honda stock.