Alliston, Ontario - 30 March 2015
Our Government is committed to helping Canadian companies expand and succeed in the global market by keeping taxes low, reducing red tape and opening new markets to boost exports. Increased trade creates jobs, growth and long-term prosperity for all Canadians.
To this end, on March 30, 2015, Prime Minister Stephen Harper welcomed the announcement made by Honda Canada Inc.’s President and Chief Executive Officer Jerry Chenkin that its manufacturing facility in Alliston, Ontario, will produce the next-generation CR-V model destined for the European Union (EU) market.
Honda Canada is upgrading its Alliston facility to produce the next-generation CR-V. This project, along with Honda’s current operations, will continue to protect high-quality and well-paying jobs, as well as economic growth for Canada through increased trade with the EU.
This will be the first time that Honda Canada will export vehicles to Europe. Honda Canada’s decision was made possible by the historic market access provided by the Canada-EU Trade Agreement which is paving the way for increased Canadian exports to the world’s largest integrated market of more than 500 million consumers.
Honda Canada Inc. was founded in 1969 by the Honda Motor Co., Ltd, and became the first Japanese automaker to manufacture in Canada when it opened its Alliston assembly plant in 1986. Honda Canada has produced more than 7 million cars and trucks since 1986 at its two manufacturing facilities and builds engines at a third manufacturing plant. Honda Canada has invested over $3.9 billion in Canada, and each year it sources nearly $2.1 billion in goods and services from Canadian suppliers, benefitting many Canadian small and medium-sized enterprises.
Honda Canada also recently announced a significant three year investment to innovate its Canadian facilities with new technologies and processes to prepare for the next-generation Honda Civic and CR-V. The Canadian facility is the global lead plant for the next-generation Honda Civic.
The Canada-EU Trade Agreement will provide historic new market access opportunities for Canadian companies, including those in the automotive and advanced manufacturing sector, and will allow significant increases of exports to Europe. The Agreement includes rules of origin that reflect Canada’s place within the integrated North American automotive industry. Canadian auto manufacturers will have the ability to export passenger vehicles annually to the EU on a preferential basis under a flexible rule of origin. The Canadian auto industry is highly export-oriented, with approximately 90 per cent of auto production exported every year.
The Government of Canada is committed to ensuring that Canada remains a country of choice for manufacturers and exporters alike. Canada has much to offer to both automakers and parts manufacturers: the new bridge between Windsor, Ontario, and Detroit, Michigan, a dynamic and supportive environment for automotive research and development, a low-tax and stable economy, a highly skilled and productive workforce, well-developed infrastructure and access to markets.
The Canada-EU Trade Agreement will provide Canada with preferential market access to the largest and most lucrative integrated market in the world, a market of more than 500 million consumers that generates almost $20 trillion in economic activity annually.
A joint study concluded that the Canada-EU Trade Agreement could boost Canada’s economy by $12 billion annually and boost bilateral trade by more than 20 per cent. This is equivalent to creating almost 80,000 new jobs or increasing the average Canadian family’s annual income by $1,000.
With the Canada-EU Trade Agreement, Canada will be one of the only countries with tariff-free access to two of the world’s largest economies, the United States and the EU, and its 800 million consumers.
