Now that Honda Canada has committed $15 billion in the future towards building electric vehicles in Ontario, the president/CEO of the company in Canada is hoping all of its dealers embrace it.
“Our (message to our dealers) is, I think, we need to get ready,” Jean Marc Leclerc told Canadian auto dealer following a keynote speech he made at the EV & Charging 2024 Expo on Thursday in Toronto.
The two-day event showcased exhibitors and products and had various symposiums. Leclerc told the assembled crowd about the investment Honda announced last week — the biggest by the manufacturer in North America — and the biggest by any OEM in Canada.
It will include four new plants to be fully functional by 2028, and that will build electric batteries and EVs. Honda plans to make EVs 100 per cent of its sales worldwide by 2040, as part of an overall commitment to reduce greenhouse gas emissions. Leclerc told the audience the investment will create a “vertically integrated and comprehensive” EV value chain in Canada.
He also said it will deal with all aspects of EV production from raw materials to the refinement of these materials, production of critical battery components, production of batteries, and ultimately the production of finished EVs. Prime Minister Justin Trudeau and Ontario Premier Doug Ford have described the announcement as a significant game changer for the Canadian automotive industry.
Leclerc also said the company plans to provide training to their dealerships and employees to handle customers’ inquiries about EVs. He said it’s not going to be “business as usual” in terms of selling a vehicle.
“I think it’s going to mean working a little harder when you have somebody interested,” said Leclerc. “It’s not just about the vehicle, but how the lifestyle fits into the purchase of that vehicle. They need to be able to eliminate some of the anxiety, perhaps, that people coming in have. They might be a little bit nervous or curious or about wanting to buy one.”
“That’s really the role of the dealer, and I think having a dealer network that’s well established with the right training is going to be invaluable to make sure the transition happens. We’re excited about that. We’re just at the beginning, and more will need to be done.”
He said one of the things the company plans to do is go back to customers who were early adopters of EVs to understand their perspective on the selling process so the company can adjust its training accordingly.
“It’s going to help us, it’s also going to help our dealers moving forward,” said Leclerc. “I’d say that’s kind of our focus of our relationship (for selling EVs).”
Leclerc acknowledged that EV sales in general have been lukewarm, due to consumer concerns about price and charging anxiety. Moreover, dealers say they want more hybrids because they are in great demand.
“The good news is we’ve told (dealers) we’re going to be ready for whatever the future holds, because we have the Accord CRV Hybrid that is selling well,” said Leclerc. “A large percentage of what we sell respectively is hybrids. The (2025) Civic Hybrid is going to be a big hit. It’s going to be launched later this spring.
“The dealers have the same concerns as everybody else: is EV adoption at the speed that everybody says it is? What we’re saying to them is, listen, there’s a lot of unknowns. There may be some risks, but we’re going to be ready. Our plants across North America are prepared for a flexible approach, if you will, to make sure they have something to sell based on where demand is going and being able to react, to shift and pivot.
“I think that’s a feel-good for them because all they hear about is EVs, and yet they have customers coming in that aren’t quite ready to make (that commitment). But hybrids are the place to go, and now we have an offering that I think will respond to that very aggressively.”
He said dealers should “feel quite good” about Honda’s position, and that there will “absolutely” be a plentiful supply of hybrids in the short term. He also noted that Honda, similar to all other OEMs, have to comply with federal government regulations to sell a certain quota of EVs.
“That may change because we know that government’s change, so we’ve got to be prepared for any kind of eventuality on that front,” said Leclerc.
“Whatever the demand is going to be, based on government regulations or whatever adoption of EVs will be at that time, we’ll have EVs, we’ll have hybrids, we’ll have ICE vehicles that we’re going to produce. I think we’re in a very good position and able to address any kind of changes or manage the risk coming at us, wherever the market is going to be based on whatever changes may come about.”
“That’s a big thing,” he added. “We are better positioned than most in terms of that uncertainty that exists in the next couple of years.”
