Prime Minister Mark Carney admitted the auto sector in Canada is facing headwinds, after a report by a Japanese outlet confirmed Honda will be pulling out of a $15-billion electric vehicle plant in Ontario.
“Obviously there’s challenges with the U.S. tariffs, unjustified tariffs in the auto sector,” said Carney, before a caucus meeting on Wednesday.
(Sidebar: that's not it, Carney.)
“We continue to work with companies in the sector, helping them reposition, reinvest, supporting workers there, we’ll continue to do what’s necessary, including getting the right deal that’s in Canada’s interest,” he added.
On Tuesday, Nikkei Asia reported the Japanese carmaker has decided to pull out of the plant in Canada due to waning demand for EVs in the U.S. and a pivot in its strategy towards hybrid models.
The plant in Alliston, Ont., was slated to become operational in 2028 and would have produced up to 240,000 EVs annually.
Last May, Honda announced a delay in its plans for the plant, noting that the company would look at where the EV market was headed.
In a statement, Honda Canada spokesperson Ken Chiu said the company has not announced anything.
“The content of the article was not released by Honda, and we have nothing to report at this time,” he said, in relation to the initial Nikkei news report.
The prime minister echoed Chiu’s comments at an event in Mirabel, Que., when he was asked by a reporter about Honda’s move.
“We’re in discussions with them [Honda] constantly,” said Carney. “There’s no announcement today to be clear.”
The federal government announced its auto strategy in February, which included an EV incentives program to build a stronger Canadian domestic consumer market. It also included investments to enhance the national EV charging network.
In January, Carney signed a deal with China to allow 49,000 Chinese EVs access to the Canadian market, in exchange for the lowering of Chinese tariffs on Canadian canola and seafood exports.
Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers’ Association, said the federal government’s efforts in its auto strategy have been overshadowed by its decision to let Chinese automakers in.
“The 49,000 that they’re allowing into the market represents one third of the Canadian EV market,” said Kingston, whose organization represents Ford, General Motors and Stellantis.
“That is a significant share of the market that has just been given over to competitors that do not play by the rules and that are benefiting from mass subsidization, weak labour laws, weak environmental laws, and are ultimately going to be dumping these vehicles into Canada,” he added.
**
Dawn Farrell made the remarks last week at a joint parliamentary committee hearing, which is evaluating the government’s performance with Bill C-5 — formally titled the Building Canada Act.
Prime Minister Mark Carney’s government fast-tracked Bill C-5 through the House of Commons last year, with support from the Conservatives, which gave Ottawa the power to designate projects as in the “national interest” in order to skirt certain environmental laws to get those projects approved faster.
At the committee hearing on April 28, Bloc Québécois MP Patrick Bonin pressed Farrell on why Bill C-5 even exists — given that Ottawa has yet to use it — and what the government wouldn’t be able to accomplish without it.
“I can say that the threat of C-5 has everybody working together in, I think, the way C-5 was intended for sure,” Farrell said.
“When I look at the 15 projects that we’re working on today, plus the projects that are coming through the pipeline, we have been able to use this concurrent process with these projects — which was intended in C-5. What was intended in C-5 was a two-year program.”
So far the government hasn’t used C-5 power on any of the projects it has referred to the major projects office, drawing criticism from Conservatives who argue Carney could easily use it to approve a new pipeline, for example.
Asked on Thursday why the government hasn't yet designated any projects being in the national interest, Carney told reporters it's because the government respects the law.
... says the carpet-bagger who had Canadian residents elect him as head of the federal Liberal Party and poached willing and greedy MPs from other parties to shore up his flagging one.
Carney respects nothing.
Rates of home ownership for young families are at a postwar low, Statistics Canada figures showed yesterday. New data follow finance department research indicating nearly 40 percent of Canadians believe the nation’s best years are behind us: “Many had low expectations of the government.”
🚨🇨🇦The OECD ranked Canada's future.
— wealthmoose (@wealthmoose) May 7, 2026
DEAD LAST.
38 countries.
38th place.
For projected GDP per capita growth through 2060.
Not projecting a recession.
Projecting a generation.
Carney just borrowed $25B more.🤔
🍁 #CdnPoli #OECD #Canada pic.twitter.com/8ofJ9kZ4SZ
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