Japanese carmaker Honda has been planning to invest about $857 million in its three plants located in Toronto's Alliston locality. The company shall receive a certain amount as finance support from the government, which means that Ontario taxpayers shall contribute about 10% of the total cost. Speaking more on the occassion, Jerry Chenkin, President of Honda Canada Inc., said, “This marks the first time a Honda plant outside Japan has been designated as a ‘global lead plant’, which reflects the knowledge and experience of our Canadian associates.”
The plants may be used in the assembling and upgrading of vehicle like CRVsports utility vehicle and Civic sedans. The plants shall hold a capacity of employing about 4000 and the current capacity for manufacturing about 3,90,000 cars a year for the US and Canadian markets are also expected to rise. It is said that profits in the compact car segment is usually lower and hence even saving up some pennies on lakhs of parts can run to about lakhs of additional profit.
Speaking more on the occasion, Chenkin said, “We are deeply proud to be the lead plant for the next generation of Honda Civic, a designation that reflects the incredible efforts of Honda associates over the past quarter century to produce products of the highest quality for our customers in Canada and around the world.” Ensuring the job guarantee as the company had also used the citizens money, NDP Leader Andrea Horwath said, “We think it’s worthwhile to keep auto sector jobs in Ontario, but what we do want to make sure is that there’s value for the investment that taxpayers provide or that the government commits to with these grants.”
