ALLISTON, Ontario--(BUSINESS WIRE)--Honda of Canada Mfg. (HCM), a division of Honda Canada Inc., announced today that it will produce the next generation CR-V model for the European market. This will be the first time that HCM will export vehicles to Europe.
Today’s news follows Honda’s recent announcement of a significant three year investment to innovate its Canadian facilities with new technologies and processes to prepare for the next generation Honda Civic and CR-V. The Canadian facility is the global lead plant for the next generation Honda Civic, Canada’s best-selling passenger car for the past 17 years. An additional manufacturing milestone came recently on March 26, 2015, as the seven millionth vehicle was built at HCM.
“Honda is thrilled to once again have good news for automotive manufacturing in Canada by broadening our production portfolio to include exports to the European market,” said Jerry Chenkin, President and CEO of Honda Canada Inc. “This expansion decision was made possible due to our deep, mature, and rich talent pool with nearly 30 years of automotive manufacturing experience. We are so proud that our Canadian associates have the reputation of producing high quality vehicles that will meet the needs of the discerning European customer.”
The announcement further solidifies Honda’s already deep roots and commitment to Canada. This export plan leverages Honda’s previous investment announcement and therefore does not require significant capital investment. The creation of new jobs will be modest, however the agreement marks an important broadening of HCM’s export destinations, as well as securing highly skilled jobs in the region and providing additional opportunities for Honda’s Canadian supply chain.
“The negotiation of a free trade agreement with Europe by the Government of Canada under CETA (Canada-European Union Comprehensive Economic and Trade Agreement) was a catalyst for our decision to export CR-Vs. These opportunities will open new markets for our high quality vehicles from Canada and help keep us competitive in the global environment,” added Chenkin.
The announcement today was attended by Canadian Prime Minister Stephen Harper and the Minister of International Trade, Ed Fast.
Honda of Canada Mfg. has the capacity to produce 390,000 Civic and CR-V models annually for the Canadian and North American markets, as well as for export. Of these, approximately 100,000, Canadian-built Civic and CR-V units are sold in Canada every year. HCM also produces 260,000 four-cylinder engines annually.
Honda Canada Inc. was founded in 1969. It has produced more than seven million cars and trucks since 1986 at its two manufacturing facilities and builds engines at a third manufacturing plant in Alliston, Ontario. Both manufacturing facilities are extremely flexible and currently build Honda Civic and CR-V models. Honda Canada has invested more than $3.9 billion in Canada and each year it sources nearly $2.1 billion in goods and services from Canadian suppliers. Honda Canada has sold more than four million Honda and Acura passenger cars and light-duty trucks in Canada.