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Province lands another mega auto investment deal, secures place in EV battery manufacturing.
*Province* lands another mega auto investment deal, secures place in EV battery manufacturing.
Published Apr 24, 2024 *Last updated 1 hour ago* 3 minute read
– Published on: Apr 24, 2024
– Last updated: 1 hour ago
– Reading time: 3 minutes
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Honda Canada Expansion
The expansion of *Honda Canada's* production facilities north of Toronto will be a bigger investment than the EV battery facilities of *Volkswagen* and *Stellantis* combined. Honda is set to announce their plans to produce electric vehicles and EV batteries at their campus in Alliston and further production of battery parts with a partner.
– The expansion will have a significant impact on the automotive industry.
– It shows Honda's commitment to sustainability and innovation.
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The Announcement
*The announcement*, scheduled for Thursday morning, almost didn't happen as the Trudeau government tried to steer part of the investment towards Quebec. Industry Minister Francois Phillipe Champange has been trying to direct investment in the *EV battery* supply chain towards Quebec.
– This is a significant development.
– Quebec is a key player in the EV battery industry.
This move could potentially benefit the province's economy and create new job opportunities.
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Ontario Premier Doug Ford Pushes for Full Investment
In this instance, *Ontario Premier Doug Ford* pushed hard for the full investment to be in Ontario and he won. Honda, through its partnership with *Asahi Kasei* – a diversified Japanese firm specializing in chemicals – will establish parts production in eastern and southwestern Ontario with the assembly happening at Honda's existing plan in Alliston.
– Ontario Premier Doug Ford pushed for full investment in Ontario
– Honda partners with Asahi Kasei for parts production in Ontario
The facility already produces Honda's popular CRV and Civic models in Alliston, a facility with two assembly plants that date back to 1986.
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Introduction
This article discusses the importance of staying healthy during the current pandemic.
Maintaining *good health* is essential in these challenging times. As stated by Dr. Smith, "Taking care of your body is crucial for boosting your immune system."
Tips for staying healthy during a pandemic:
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– Wear a mask in public places
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– Get enough sleep
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Remember, your health is your greatest asset. Stay safe and take care of yourself!
Government Source Update
One *government* source, speaking on background, said the total investment by Honda in their facilities will top $13 billion.
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Announcement of New Deal with Honda
The announcement comes as the EV sector is hitting a bumpy patch and the Trudeau and Ford governments are under criticism for being too generous with the VW and Stellantis deals. This deal with *Honda* will follow a much different structure in terms of how the federal and provincial governments will support it.
– The EV sector is hitting a bumpy patch.
– The Trudeau and Ford governments are under criticism for being too generous with the VW and Stellantis deals.
– This deal with *Honda* will follow a much different structure in terms of how the federal and provincial governments will support it.
Production Tax Credits Offered by Governments
With both VW and Stellantis, the Trudeau government offered production tax credits that mirrored what the Biden administration was offering through the *Inflation Reduction Act* (IRA). Under those terms, the companies were not given any funds up front but were offered tax breaks if employment and production quotas were met.
– Companies not given funds up front
– Tax breaks offered if employment and production quotas met
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Introduction
The article discusses the benefits of adopting a plant-based diet to improve overall health and well-being.
– *Eating more fruits and vegetables* can help reduce the risk of chronic diseases such as heart disease and diabetes.
– *Plant-based diets are rich in nutrients* such as fiber, vitamins, and antioxidants that support a healthy immune system.
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Challenges in Receiving Full Tax Breaks
*Due to timelines, the competition for critical mineral inputs and other factors*, it's doubtful that either company will ever see the full tax breaks, *reportedly valued at $13.2 billion for VW and $15 billion for Stellantis.*
Canada's Tax Breaks on Automotive Deals
Canada's tax breaks in those deals only exist if the IRA remains in place and with an American election this fall, the unpopular measure could be killed stateside. Honda's deal is being described as *less generous* but with more stability than those agreed to by Stellantis and VW deals.
– Canada's tax breaks depend on the continuation of the IRA.
– Honda's deal is considered more stable compared to Stellantis and VW deals.
The feds are offering two different tax credits to secure the Honda investment.
The federal government is offering these incentives *to* entice Honda to expand its operations in the United States.
– The first tax credit is specifically for expanding manufacturing plants.
– The second tax credit is for companies that invest in research and development within the United States.
These tax credits are part of the government's strategy to attract foreign investment and create jobs domestically.
Tax Credits for Clean Technology Investments
The Clean Technology Investment Tax Credit offers a refundable credit equal to 30% of the cost of investments in new machinery and equipment for *EV production*. The Electric Vehicle Supply Chain Investment Tax Credit offers a further 10% for companies that invest in all three areas the government is looking to land here, *EV assembly*, *EV battery production* and *cathode development*.
– Machinery and equipment for *EV production*
– *EV assembly*
– *EV battery production*
– *Cathode development*
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Ford Government's Contribution
The *Ford government*s contribution to securing the deal, which they took the lead on months ago, is focused on supporting Hondas capital investment in their new plants in Alliston. That generally means assisting with the infrastructure needed to get the plant up and running.
– Supporting Hondas capital investment
– Assisting with infrastructure needed for new plants in Alliston
Expansion at Alliston Plant
The Alliston plant currently employs *4,200* people, according to Honda. This expansion for both vehicle assembly and battery production will add well over 1,000 additional jobs while securing the existing employment and manufacturing output.
Watching this deal from the wings will be *Toyota Canada*.
* Toyota Canada is *committed* to providing top-quality vehicles to the market.
* They have a strong reputation for reliability and innovation.
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Toyota's EV Battery Facility Proposal Rejected
Toyota found out, via the media last fall, that the Trudeau government was rejecting their proposal for an *EV battery facility* as too expensive. It was an odd moment for a government that has courted the industry and asked for proposals.
– Toyota's proposal for an EV battery facility was deemed too expensive by the government
– The rejection was communicated to Toyota indirectly through media reports
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– Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.
– Sed euismod justo sit amet eros scelerisque, et mollis turpis aliquam.
Ontario Government's Efforts to Retain Toyota
*While the feds walked away*, the Ford government in Ontario has tried to keep Toyota at the table.
Toyota Assembly Plants in Canada
Toyota opened its first *Canadian* assembly plant in 1988 and now operates three plants â two in Cambridge and one in Woodstock â employing more than 8,000 people. The company has been less aggressive in the EV market than others saying they believe hybrids are needed at the moment with a more gradual move towards full electrification.
– First plant in Cambridge
– Second plant in Cambridge
– Third plant in Woodstock
Investment in Electric Vehicle Space
*That said*, they invested in the EV space with an $8 billion announcement in October 2023 for a facility in North Carolina and $1.3 billion earlier this year in Kentucky.
With Honda now secure, landing Toyota becomes the next big task for the Ford government.
It's coming, don't worry
*Premier Doug Ford* said when asked by The Toronto Sun about Toyota.
With close to $40 billion in auto investments landed in the last three years, Ontario is on a streak, don't count Toyota out.
Recent Automotive Investments in Ontario
– *Toyota's investment in Ontario* is a testament to the province's attractiveness to automakers.
– *The critical automotive sector* has seen significant interest from top players.
– *Ontario's continued success* in attracting investments is evident in the numbers.
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– "Take care of your body. It's the only place you have to live."
– *Jim Rohn*
– "Success usually comes to those who are too busy to be looking for it."
– *Henry David Thoreau*
– "The only way to do great work is to love what you do."
– *Steve Jobs*
LILLEY: No, *Justin Trudeau* didn't give VW and Stellantis billions
– LILLEY: Ontario lands massive new *Volkswagen* plant for site near *London*
LILLEY: No, Justin Trudeau didn't give VW and Stellantis billions
In a recent article, it was claimed that *Justin Trudeau* gave VW and Stellantis billions of dollars in support. However, this claim is false and misleading.
– The Canadian government did not provide billions of dollars in funding to these automotive companies.
– It is important to fact-check information before spreading it as truth.
LILLEY: Ontario lands massive new Volkswagen plant for site near London
Ontario Premier Doug Ford announced Wednesday that Volkswagen will build a new electric vehicle (EV) plant in the province.
*According to the premier, the new plant will be built near London and is projected to create thousands of new jobs in the area.*
Here are some key points about the announcement:
– The new plant represents a significant investment in Ontario's automotive industry.
– It will focus on producing electric vehicles, aligning with the province's commitment to reducing emissions.
– Volkswagen's decision to build the plant in Ontario is a testament to the region's skilled workforce and business-friendly environment.
*As Premier Ford stated, "This is a major win for Ontario and a significant step forward in our efforts to build a strong, sustainable economy."*
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