MARKHAM – Honda Canada says it will retool its manufacturing facility in Alliston, Ont., to expand production of hybrid-electric and gasoline-powered vehicles.
The Japanese automaker announced Monday it is partnering with the federal and provincial governments to fund plant upgrades, including the reintroduction of engine manufacturing, with an initial $166 million investment.
It says that funding is part of a broader $867-million commitment that will enhance quality, efficiency and manufacturing flexibility.
Honda says the funding will ensure it can maintain its workforce of 4,000 Canadian employees, while supporting its Canadian auto production volumes.
In May, Honda announced plans to introduce 15 new Honda and Acura hybrid models globally by 2030, with North America expected to be the primary market for many of those vehicles.
That same month, the company indefinitely suspended its plans for a $15-billion electric vehicle complex, which it had said could create 1,000 incremental manufacturing jobs in Alliston, in response to dwindling demand.
This report by The Canadian Press was first published Nov. 9, 2026.
