Japanese Automaker Honda Invests Over $400M

The Japanese auto marker Honda, has invested over $400M in its facilities in Allison in the province of Ontario. This upgrade is to outfit the facilities with equipment that will make the production of the new models of the Civic and the CR-V.

Honda Canada is getting financial aid from both the federal and provincial goverment. Both Queen’s Park and Ottawa will contribute $41.6M while that the goverment’s own contribution will come in the form of grants. In addition to the assembly lines, there will also be a brand new paint shop at Allison, 100km away from Northwest Toronto.

The new paint shop will reduce greenhouse gas emissions by 44% according to Honda Canada’s CEO Jerry Chenkin. The aid from the federal government will span 3 years.

This investment is great for Canada in terms of economical benefits which will be reaped now and in years to come.

However, not everyone is happy about this. The CTF—Canadian Taxpayers Federation—was incensed by the announcement saying that it is an “egregious example of corporate welfare” and “a massive waste of taxpayer dollars.”

But on the bright side, Honda will invest $2B in Canada.