Market Chatter: Honda Motor Halts Canadian EV Plant Plans Amid Weak US Demand
Honda Motor (HMC) is pausing its plans to construct an electric vehicle manufacturing facility in Canada amid weak US demand, Nikkei Asia reported Tuesday, citing sources.The automaker, which initially intended to invest 15 billion Canadian dollars ($11 billion) in the site and a battery factory, has suspended the project indefinitely and initiated discussions with the Canadian government, the news outlet reported.Honda will also cease production of its Prologue electric vehicle, developed alongside General Motors (GM), in H2, leaving its US portfolio temporarily without any electric models, according to the report.The company plans to reduce its 7 trillion-yen ($44.34 billion) global electrification investment goal for 2030 and repurpose its Ohio manufacturing operations, including a battery joint venture with LG Energy Solution, to focus on hybrid and gasoline vehicles, Nikkei Asia noted.Honda did not immediately respond to' request for a comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)Price: $24.18, Change: $+0.32, Percent Change: +1.34%