The Canadian division of the third-largest Japanese automaker has announced it aims to invest 857 million Canadian dollars ($750 million) during the next three years to update assembly facilities in Alliston, Ontario.
The move is necessary as the automaker plans to make Canadian plants in Ontario the global production hub for the production of the upcoming next-generation Honda Civic compact car. The investment includes a conditional grant of up to C$85.7 million to be given by the province of Ontario, with the Alliston location set to develop the manufacturing processes and tooling for the global production locations of the upcoming Civic. This is also “the first time a Honda plant outside Japan has been designated as a ‘global lead plant,’” according to Jerry Chenkin, the CEO of Honda Canada Inc.
Choosing Canada as the global hub for the production of the next generation Honda Civic should be unsurprising, considering the fact that the model has been the country’s best-selling passenger car for the past 16 years. Besides investing in the upcoming Civic production, the plan also calls for Honda of Canada Manufacturing to direct a portion of the money to research technologies and processes that would upgrade the two auto assembly facilities and one engine factory.
Via Automotive News