Achi news desk-
News of Honda’s historic $15 billion deal to build its first comprehensive electric vehicle supply chain in Ontario has local residents and officials excited about the potential boost to business and jobs in the area.
Honda Canada announced Thursday alongside Prime Minister Justin Trudeau and Ontario Premier Doug Ford that it will build four new manufacturing plants in Ontario, including an electric vehicle assembly plant and a stand-alone battery manufacturing plant at its existing facilities in Alliston , Ont., a small community of 23,000 residents between Toronto and Barrie.
The Japanese company already employs 4,200 people at its current Alliston facility, but statements from Honda and the federal and state governments say the facility’s two new factories will produce up to 240,000 vehicles a year and create more than 1,000 “good-paying manufacturing jobs” once fully operational in 2028.
“The opportunities for the local residents are going to be amazingly great,” said Richard Norcross, mayor of New Tecumseth, which includes the nearby communities of Alliston and Beeton and Tottenham.
He says that Honda has been a pillar in the community since the first Agreement ended in 1986, and he said that significant donations from the company have helped the local hospital to expand and buy new equipment.
But it’s the future that excites Norcross the most.
“We’ve just secured great paying jobs for probably the next four generations of people,” added Norcross, who expects knock-on effects for the community when Honda finishes renovating the facility .
With interest in electric vehicles seemingly lagging behind, is Honda’s $15 billion plan to build four electric vehicle factories in Ontario a good investment? CBC’s Erica Johnson asks industry experts David Booth and Daniel Breton to break down the risk versus reward.
Additional jobs created: Norcross
He says around eight support jobs are created for each plant assembly site, a statistic shared by the Canadian Automobile Manufacturers Association.
Auxiliary jobs include work at local restaurants, stores, retail stores and supply companies, Norcross said, adding that he has received texts and phone calls from community and business leaders since the announcement anticipating an increase in staff.
Lachlan McGurk, owner of a flower and chocolate shop in the historic town of Alliston and chairman of the Alliston business improvement association, shares that sentiment.
“All those jobs created new jobs and new businesses to support the operations at Honda,” he said.
However, some recent history guards McGurk’s optimism.
In 2011, Ford closed its factory in St. Thomas, a southwestern Ontario community, with thousands eventually losing their jobs.
Seven years later, GM announced it would permanently close its Oshawa Assembly Site, putting about 2,400 people out of work.
“This boost is welcome, but Alliston will never take Honda for granted.”
Still, the investment by the Ford government is characterized as the largest in Canadian history, with one expert saying it is likely the largest in North American history as well.
“For comparison, Ford Motor Company made a huge investment in Kentucky and Tennessee two years ago … for $11 billion,” said Flavio Volpe, president of the Automotive Parts Manufacturers Association.
Thursday’s announcement includes $5 billion in government support, half from the feeders through tax credits and half from Ontario in direct and indirect incentives.
It follows a series of announcements to build the electric vehicle industry in Canada, including for a VW battery plant now under construction in St. Thomas, Ont. and the Stellantis battery plant in Windsor, Ont.
Mike McEachern, former mayor of New Tecumseth and executive director of Focus, a local employment agency, isn’t worried about Alliston suffering the same fate as Oshawa or St.
“You don’t have a great manufacturer in the community unless you have the workforce to support it,” McEachern said.
Infrastructure and housing needed: former mayor
But, he added, the town will need to continue infrastructure improvements and, like many municipalities in the province, is struggling with housing stock.
“We need to be able to house people as close to where they work as possible because it’s a better quality of life all around,” McEachern said.
McGurk says Simcoe County, which includes New Tecumseth, is one of the fastest growing in Ontario and the investment works closely with the planned growth for the area.
But, he warns that some employers could see Honda’s investment as a double-edged sword if population growth slows and the automaker monopolizes a lagging labor supply.
Local residents who spoke to CBS News after the announcement echoed the balance between the hope the new facilities will bring to the town and the work needed to cope with the resulting growth.
“I hope the jobs it creates will be for people who are really struggling in this area,” said Margaret Ringland, who would like to see an economic windfall from the new plants in go towards social housing.
“It will be good for the community,” said Anthony Osborne, a former Chrysler manufacturing worker who recently moved to Alliston.
“Any addition has to help.”
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