in World News Honda gets $5 billion in tax-funded subsidies to create 1,000 jobs
By Clayton DeMaine, True North Wire
Automotive giant Honda will be getting $5 billion in subsidies from the federal and Ontario governments towards its $15 billion investment in four new electric vehicle plants.
Prime Minister Justin Trudeau and Ontario Premier Doug Ford announced Honda’s plans to build the EV plants Thursday but were scant on details about how much taxpayers were on the hook for.
The $5 billion figure, shared by the federal and provincial governments, has raised eyebrows from critics of corporate welfare.
Domestic policy analyst Aaron Wudrick of the Macdonald-Laurier Institute, noted on X that $5 billion in subsidies to create 1,000 jobs – the new jobs promised by Honda and the government – would cost Canadians $5 million dollars per job.
Honda would be spending $15 billion on four new electric vehicle plants in Ontario and the Canadian taxpayer will be footing one third of the bill.
Trudeau said the jobs would be secured for “decades and even generations.” Trudeau also mentioned he believes this move will create jobs across the country for auto parts suppliers.