Honda indefinitely paused its planned EV expansion in Ontario. Existing Civic and CR-V production remains unchanged in Canada. Hybrids are increasingly reshaping automakers’ future plans. Only a few years ago, big spending on EV production made sense to many automakers. It’s why Honda was so willing to commit to its CA$15 billion (about US$10.8 billion) project in Alliston, Ontario, Canada. Now, it’s parking that program indefinitely. Hybrids that are already in production will continue rolling out of the factory, but the EV side of the business is officially on hold. Honda Global CEO Toshihiro Mibe announced the change in plans during a press briefing on Thursday. The facility was originally pitched as Canada’s first fully integrated EV ecosystem, combining vehicle assembly and battery production under one ambitious umbrella. At one point, it was expected to create roughly 1,000 new jobs and produce up to 240,000 EVs annually. Read: The Next Honda Civic Is Getting Lighter, Sharper, And More Hybrid Mibe said the company plans to spend the next three years restructuring its automobile business while redirecting resources toward hybrid vehicles. As we’ve reported, demand for hybrids has remained strong while EV growth has softened domestically. Honda delayed the project only last year, saying it would revisit market conditions before making a final call. Now, “pause” has become “indefinite suspension.” The timing makes sense despite it also being less than ideal. According to CTV News, Honda posted a $2.7 billion loss, its first full-year loss on record, with the company pointing toward high EV-related costs and changing U.S. policy. Under President Donald Trump’s administration, EV incentives have been rolled back, and emissions regulations loosened, altering the economic math for automakers betting heavily on battery-powered vehicles. At the same time, production of the Civic and CR-V at the Alliston plant will continue. In 2025 alone, Honda built around 400,000 vehicles in Canada, including approximately 198,000 Civics and 202,000 CR-Vs. More than 60 percent were hybrids. Honda stressed that no current jobs are affected and no government money had actually changed hands despite roughly CA$5 billion in pledged support from federal and provincial governments. No doubt, this move will have implications for Honda for years to come. At least, for the time being, factory workers aren’t affected. Acura RSX prototype