Government of Canada invests $41.8 million in Honda of Canada Manufacturing to maintain middle-class jobs and develop clean technologies

News Release

Automotive Innovation Fund supports Canadian jobs and technologies that shape the future of the industry

January 9, 2017 – Alliston, Ontario – Innovation, Science and Economic Development Canada

The Government of Canada is committed to maintaining and creating good middle-class jobs, growth and long-term prosperity by keeping Canada's automotive manufacturing sector globally competitive and innovative.

Today, the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, announced an investment of $41.8 million over three years in Honda of Canada Manufacturing.

The Government of Ontario is also contributing $41.8 million in support of a total project investment of $492 million.  

These investments will maintain Canadian jobs by supporting advanced and clean technologies. This will allow Honda's plants in Alliston, Ontario, to secure their global competitiveness. Honda of Canada employs more than 4,000 contracted and full-time associates, and it produced more than 385,000 Civic and CR-V models and 221,000 engines in 2015.

This funding demonstrates the Government of Canada's support for innovation in the auto industry and its commitment to attracting investment in this important sector of the economy.

The funding is provided through the Automotive Innovation Fund (AIF), which was extended to 2020–21 in Budget 2016. The AIF provides support for strategic research and development projects that lead to greener, more fuel-efficient vehicles.

Minister Bains also announced changes to the terms and conditions of the AIF. The changes include the option of recipients receiving contributions without the expectation of repayment. This amendment is in keeping with the commitment made in Budget 2016 to maximize the impact of federal support for the automotive sector.

The investment announced today will help secure Canada's automotive footprint by anchoring Honda's presence in Canada for years to come.

The Government of Canada's Innovation Agenda will promote clean growth, quality jobs and higher living standards for the middle class. The investment in Honda of Canada Manufacturing and the changes to the AIF are key elements of this plan.


"Our government's support for innovation in the auto sector is a key part of our plan to drive economic growth to create a better Canada. That means better jobs, better opportunities and better living standards for all Canadians. This investment in Honda of Canada will bring significant economic and environmental benefits to Canada both now and in the long term. It will keep our industry competitive and ensure that well-paying middle-class manufacturing jobs stay in Canada."

– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

"Technology and innovation never stand still, so it's essential that Ontario's auto sector remain globally competitive. Honda is a cornerstone of our sector, accounting for about 17 percent of Ontario's vehicle output. With this partnership, the company and provincial and federal governments are joining forces to ensure that Honda's skilled Alliston team remains a leader in building the vehicles of tomorrow."

– The Honourable Brad Duguid, Ontario Minister of Economic Development and Growth

"Thank you to both the Ontario and federal governments for creating an environment that will allow us to further modernize our manufacturing facilities and make innovative upgrades possible, including building a state-of-the-art paint shop that will reduce the GHG emissions from our paint process by 44 percent, further reducing our manufacturing carbon footprint in Canada. As a result of these upgrades, Honda of Canada Manufacturing will continue to provide thousands of well-paying, high-quality jobs in Alliston and throughout Canada."

– Jerry Chenkin, President and CEO, Honda Canada Inc.

Quick facts

  • The automotive industry is the country's second largest manufacturing sector, producing more than 2 million vehicles per year.
  • The auto sector employs over half a million Canadians, and for every assembly job, it creates six spinoff jobs.

Related products

Follow Minister Bains on social media.
Twitter: @MinisterISED


Philip Proulx
Press Secretary
Office of the Minister of Innovation, Science and Economic Development

Media Relations
Innovation, Science and Economic Development Canada

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