TORONTO (Reuters) - Honda Motor Co said on Monday that its Canadian unit will produce the next generation CR-V model for the European market, marking the first time that its Canadian arm will export vehicles to Europe.
Honda said the export plan is made possible by Honda's prior investments in its plants and it will therefore not require significant capital investment. The creation of new jobs will be modest, the company said.
Last year, Honda announced that it invest C$857 million over three years to upgrade its manufacturing plants in Alliston, Ontario, which will be the global lead for production of the next-generation Honda Civic.
Honda's Canadian manufacturing operations can produce up to 390,000 Civic and CR-V models, and 260,000 four-cylinder engines annually.
"The negotiation of a free trade agreement with Europe by the Government of Canada under CETA (the Canada-European Union Comprehensive Economic and Trade Agreement) was a catalyst for our decision to export CR-Vs," said Honda Canada Chief Executive Jerry Chenkin, in a statement.
Reporting by Euan Rocha; Editing by Bernard Orr