2024-01-09 11:00:28
Honda: an investment of 14 billion dollars for a factory in Canada
Competition in the electric vehicle market continues to intensify, and Honda intends to take up the challenge once morest Tesla, BYD, or even Stellantis. According to the Japanese weekly Nikkei Asia, the Japanese group plans to invest around 2 trillion yen ($14 billion) in a factory in Canada. Canadian Industry Minister François-Philippe Champagne welcomed this news with enthusiasm, seeing it as proof of Canada’s growing reputation. as a leader in the electric vehicle sector ». Honda is considering several sites, notably in Ontario, with a decision expected by the end of the year for production to begin in 2028.
Canada is striving to attract players in the electric vehicle sector by highlighting tax incentives, its clean energy and the abundance of its rare mineral soils. This Canadian strategy is largely inspired by that of the United States with its climate plan Inflation Reduction Act. This also provides an equivalent to the ecological bonus for the purchase of any electric vehicle manufactured on its soil as well as billions in subsidies for green industries. Initiatives that have not gone unnoticed by the Japanese manufacturer. He announced a partnership with LG Energy to build an electric vehicle factory in Ohio, with production beginning in 2026.
The race to produce electric cars
This decision by Honda comes a few months following the announcement of the partnership between the car manufacturer Stellantis and Samsung SDI for the construction of a second battery factory in the United States. The Stellantis group (PSA Peugeot-Citroën and Fiat Chrysler Automobiles) already has a first factory in Indiana since May 2023, where the production of electric vehicles and batteries should begin this year 2024. Stellantis, in addition to developing exchangeable batteries, aims to double the number of electric cars sold in the United States by 2030 and plans to invest 30 billion euros for its electrification by 2025. The bar is set high for Honda, however, the Japanese manufacturer seems determined to take up the challenge.
Since 2021, Honda has clearly stated its ambition to become 100% electric in its automobile segment by 2040. The manufacturer has already demonstrated its commitment to electrification, notably with an investment of 434 billion yen (2.9 billion euros) for the production of electric batteries in Japan, supported by subsidies from the Japanese government. Honda, also renowned for its two-wheeled vehicles, intends to stand out in this segment by making it, too, take the path of electrification. The Japanese manufacturer aims to sell 4 million electric motorcycles and scooters per year from 2030.
1704804880
#Honda #invest #billions
