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Honda's (HMC) to Invest $1.38B in CR-V Hybrid Model in Canada

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Honda of Canada Mfg. (“HCM”), a subsidiary of Honda Motor (HMC - Free Report) recently announced an investment of $1.38 billion over six years to refurbish its Alliston, Ontario, manufacturing plants. The plants will be responsible for vehicle research and development, promotion of innovative technologies, processes and supply chain. The efforts are part of Honda's goal to reach zero emissions by 2040.

The investment will steer HCM to be in the leadership position in North America for the all-new 2023 CR-V Hybrid crossover. Honda's total investments in Canadian facilities will stand at more than $6.5 billion since 1986 when it became the first Japan-based automaker to build a Canadian manufacturing unit.

The governments of Canada and Ontario have partnered with HCM, with each government unconditionally contributing $131.6 million.

The enhancement of both production lines at HCM will allow Honda to secure and generate a wide number of premium jobs in Alliston and throughout Honda's extensive Canadian supplier network. These will holistically benefit the overall Canadian auto industry and employee communities.

The new hybrid products will reduce greenhouse gas (GHG) emissions by an additional 30% to the already low content of GHGs that Honda emits. The transition to the new products aligns with Canada's overall GHG reduction goals and Honda's goal of carbon neutrality for its entire business by 2050.

HCM has produced more than 400,000 vehicles and 190,000 engines annually, including the Honda Civic, its best-selling passenger car, for 24 consecutive years.

Share of HMC have lost 8.3% over the past year compared to its industry’s 12.7% decline.

Zacks Investment Research
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Zacks Rank & Key Picks

Currently, HMC has a Zacks Rank #3 (Hold).

Better-ranked players in the auto space include Harley-Davidson (HOG - Free Report) , LCI Industries (LCII - Free Report) and Tesla (TSLA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised around 21.7% upward in the past 60 days.

Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 7.8% over the past year.

LCI Industries has an expected earnings growth rate of 27.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 16% upward in the past 60 days.

LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 16.8% over the past year.

Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 14.3% upward in the past 60 days.

Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.26%, on average. The stock has rallied 27.4% over the past year.

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