It turns out the Honda Prologue was appropriately named. It wasn’t the main event, just a brief, awkward introduction before the author decided to change the genre entirely. Honda has officially pulled the plug on its GM-derived electric SUV, deciding instead that the North American market would much rather have hybrids that actually sell.
The Japanese automaker has also indefinitely frozen plans for its massive $11.6 billion Canadian EV and battery hub. So much for that government-subsidized utopia in Ontario. It seems $5 billion in taxpayer “encouragement” isn’t enough to overcome the cold reality of stagnant consumer demand.
Canada was supposed to be the “Green Monarch” of North American manufacturing, with giants like Stellantis, Northvolt, and Volkswagen pledging nearly $38 billion CAD to the cause. Fast forward to today, and the “Battery Belt” looks more like a rust belt in training. Northvolt is bankrupt, GM has shuttered its Brightdrop electric van plant, and Stellantis is in such a mess it’s trying to convert subsidized factories into assembly lines for Chinese partners.
Even Volkswagen, the poster child for the post-Dieselgate penance, is killing the ID.4 in the US and Canada. Their factory in Tennessee will now focus on the Atlas, a gasoline-powered SUV that actually generates something called “profit,” a concept that seems to have eluded the EV transition team.
While Western manufacturers are frantically retreating to the safety of internal combustion, Canada has decided to open a backdoor for the competition. Despite the 100% tariffs meant to keep Beijing at bay, Ottawa just inked a deal to let 49,000 Chinese EVs slip into the country at a measly 6.1% tariff. After failing to build its own EV industry, Canada is now inviting the Chinese to do it for them, provided the cars stay under the $35,000 CAD mark.
It seems the 2035 zero-emission target might still be met, but the cars won’t be Hondas, and they certainly won’t be made by the companies that took the subsidies. Instead, we’re watching a masterclass in how to spend billions of dollars to accidentally pave the way for your biggest rival.
