Honda Motor Co. has confirmed it will “indefinitely suspend” construction of a postponed $15-billion electric vehicle plant in Ontario a day after the company reported its first-ever yearly loss. Billed as the largest foreign investment in Canadian history, Honda originally planned to build a facility near Alliston, Ont. that would be capable of producing 240,000 EVs a year once complete in 2028. The automaker paused construction in 2025 due to waning EV demand. “This decision does not affect current employment or production levels at our existing manufacturing facility in Alliston, Ontario, where operations continue to meet strong demand for Honda Civic and CR-V models,” Honda Canada Inc. said in a statement. “Despite evolving business conditions, Honda’s flexible manufacturing approach remains an industry hallmark, supporting 40 years of continuous Canadian production and the future of our Alliston, Ontario facility.” Asian business news outlet Nikkei first reported the plans to shelve the project last week, adding that Honda was pivoting to more hybrid models. Honda was to receive federal and provincial support, but said Thursday “no funds have been transferred to Honda as a result of that commitment.” The suspension comes at a difficult time for the automaker. This week, Honda reported a US$2.6-billion shortfall during the last fiscal year, the first annual loss since the company’s founding in 1948. Honda has struggled to keep up with auto competition without the models to compete for hybrid demand in the U.S., while Chinese automakers take a bite out of the EV market. “Our biggest regret is not being able to react to rapid changes in the industry,” Honda chief executive Toshihiro Mibe told reporters on Thursday. “We need to return to a path that leads to sustainability.” With files from Bloomberg News