Finance

Honda to speculate more than US$370m in Canada plant

Honda to speculate more than US$370m in Canada plant May 20, 2018Leave a comment
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MONTREAL (Canada): Honda will invest Can$492 (US$372 million) within the Alliston factory north of Toronto, with financial support from the govt and province of Ontario, Economic Development Minister Navdeep Bains said on Monday.
The governments of Canada and Ontario will each contribute Can$41.8 million over a couple of years.

The investment will enable the facility you can save new types of the Civic as well as the CR-V vehicles.

The Japanese automotive group will even develop a new paint shop to help cut greenhouse gas emissions from your paint process by 44 percent, Honda Canada CEO Jerry Chenkin said.

The improvements can help save 4,000 jobs at Honda’s facilities – which assembled 385,000 vehicles a year ago – and “further anchor Honda’s presence in Canada,” the costa rica government of Canada said inside of a statement.

The announcement provides US President-elect Donald Trump is putting pressure on automakers with facilities on US soil to stop relocating production to Mexico, where the amount of factories opened following your enactment with the Western Free Trade Agreement (NAFTA).

Signed by Canada, the us and Mexico, the agreement went into force in 1994.

Trump has until now held off criticising investments in Canada, where labour prices are a lot like those in the nation.

Manufacturers with facilities in Canada in addition have relocated plants to Mexico on account of NAFTA.

The Republican billionaire, who\’s vowed to renegotiate NAFTA, is “a possible risk” for that Canadian automotive industry, Ontario Economic Development Minister Brad Duguid said on Monday.

However, he was quoted saying they are convinced united states president-elect would loosen up to hinder the industry’s cross-border supply chain, which links several factories in Ontario to other people in Michigan and Ohio, crucial swing states that voted for Trump by small margins.

The three major American automakers invested in investing Can$1.5 billion in their plants in Ontario whenever they reached collective bargaining agreements with employees not too long ago.

-AFP

 

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