Honda Canada is planning a $1.4-billion retooling of its Alliston, Ont., operations to produce hybrid vehicles as part of its plan to shift towards of a fully electric product line by 2040.
The automaker is set to announce details at a news conference in Alliston on Wednesday.
The federal and Ontario governments each will kick in $131.6 million to the project.
In January, Honda Canada CEO Jean Marc Leclerc said the automaker would start building the hybrid version of the CR-V at its Alliston campus this summer. The automaker confirmed that late Tuesday.
The company had been retooling a portion of Plant 2 at the four million square-foot (370,000 square-metre) assembly site to make way for production midway through the year.
The first vehicles assembled will be for the 2023 model year.