At first glance, one might think Thursday's Honda announcement is great for Alliston but of negligible consequence for Windsor-Essex. Windsor-Tecumseh MP Irek Kusmierczyk says, not so.
Calling the $15-billion announcement by Honda a "monster deal," Kusmierczyk said Windsor-Essex stands to benefit directly.
"That is going to have repercussions up and down the 401, including here in Windsor-Essex," he promised. "This means more business, more contracts for Windsor-Essex suppliers."
Honda is the third auto manufacturer to partner with the provincial and federal governments to manufacture electric vehicles after Stellantis in Windsor and Volkswagen in St. Thomas. Thursday's announcement is the biggest in North America and Canada's first beginning-to-end EV supply chain.
Kusmierczyk said it's not just the most significant EV announcement in Canada but North America. He called it a complete reversal for the automotive industry.
"We had lost 300,000 manufacturing jobs. We saw the impact here in Windsor. We had an 11.2 per cent unemployment rate," said Kusmierczyk. "We've seen the complete revival of the automotive and manufacturing sector. We've seen the dark days, and now we are seeing the optimistic days."
He anticipates more local announcements.
"In this budget, you're seeing $100-billion that our federal government is putting on the table in the form of innovation tax credits. We're sweetening the pot for companies to locate here and either build batteries and build cars, or supply the companies that build batteries and build cars," said Kusmierczyk.
He wouldn't offer any details, saying negotiations with prospective investors are ongoing.
The last time the federal and provincial governments announced a massive agreement with a carmaker, Volkswagen, it had to return to the bargaining table with Stellantis.
Before the U.S. passed the Inflation Reduction Act, our governments signed the agreement for the NextStar plant on Banwell Road. The American legislation rewarded investors with deep tax cuts and incentives. Forced to up the ante in talks with the German auto manufacturer, they offered incentives on par with the Act. Stellantis wanted the same, after a tense couple of months of talks, Stellantis won those.
Kusmierczyk doesn't anticipate a repeat.
"I'm not concerned because, during those tough renegotiations last year, we know Stellantis and LGES received a strong deal," he said. "They have an excellent deal."