Auto production in Canada declined by the Detroit Three as Japanese automakers take lead, report says
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As the Detroit Three automakers have made fewer cars in Canada over the past decade, Japanese carmakers have continued to grow their Canadian footprint, according to A new report.
The findings from the Trillium Network for Advanced Manufacturing, a non-profit think-tank at Western University that analyzes manufacturing in Ontario, show that the total number of cars made in Canada has declined compared to a decade ago. In 2016, 2.3 million cars were assembled in the country; By 2025, this figure will fall to 1.2 million.
The decline is mainly due to lower production at US-based automakers Ford, Stellantis and General Motors – also known as the Detroit Three, according to the report.
The report says that in 2016, 56 percent of the cars produced in Canada were made by those three companies, which will drop to 23 percent in 2025. In the same time frame, the proportion of cars made in Canada by Japanese companies Honda and Toyota increased from 44 per cent to 77 per cent. (Five companies make up the bulk of Canada’s vehicle manufacturing industry.)
And when it comes to employment at assembly plants, Trillium Network says Japanese carmakers are outpacing even the Detroit Three – jobs at US-based automakers accounted for 60 per cent of all such employment in Canada in 2015, falling to 38 per cent in 2024. The report found that by 2024, jobs at Japanese companies would account for just over 60 percent of auto assembly employment.
Brendan Sweeney, managing director of Trillium Networks, says the changes over the past decade reflect how American and Japanese companies have set different priorities for doing business in Canada.
“It’s common for U.S.-based automakers to move away from Canada,” Sweeney said. Some Japanese-made items are also assembled in Canada, such as Honda’s Civic and Toyota’s Rav4. Very popular in North AmericaWhich Sweeney says could contribute to Japan’s continued production to some extent.
In 2025, GM announced that it will BrightDrop is ending production of its electric delivery vans At a plant in Ingersoll, Ontario. this also A shift cut at the Oshawa, Ontario, plant Since last week, 1,200 auto workers across the supply chain are at risk of losing their jobs.
Listen to CBC London’s full interview with Christian Aquilina, president and managing director of GM Canada, about plans to end BrightDrop electric van production at its CAMI plant in Ingersoll, Ontario. Aquilina fielded questions about the decision, its implications for local workers and what the change means for auto production in the province.
Meanwhile, a Stellantis plant in Brampton and a Ford plant in Oakville are slated to close through 2024 to be repurposed for other vehicles. that’s retooling has been on hold since At the Brampton plant, although it is continues as planned At later convenience. Stellantis had also cut back on a shift at its Windsor, Ontario plant last year before announcing restart third innings at the facility in anticipation of increasing demand for vehicles manufactured there.
Industry struggling before tariffs
US President Donald Trump’s tariffs have hit the auto industry hard – vehicles made in Canada 25 percent tariff imposedWith some discounts for their American components.
But Sweeney says US-based automakers were already reducing their production here, making the trade war the latest hurdle for the industry.
“It’s the season and the episode; it’s the book and the chapter,” Sweeney said. “It took 25 years to build.”
But Brian Kingston, president and CEO of the Canadian Automobile Manufacturers Association, says the report doesn’t show the full picture. He says it focuses heavily on the Detroit Three’s contribution to vehicle production and R&D, as well as auto parts production.
“(The Detroit Three’s) footprint is much larger than what is presented in this report,” Kingston said. He says he is hiring battery manufacturing plant and at Stellantis’ Windsor Assembly PlantAs well as Ford’s commitment to remodel its Oakville facility, there are signs of dedication to Canada by US-based automakers.
“The auto industry is like riding a roller coaster with constant ups and downs, but we have seen continued progress and investment in Canada from (the Detroit Three).”
Still, as the federal government is expected to release its automotive strategy sometime this month, Trillium Network’s Sweeney said he hopes it includes rewarding auto companies that have made a commitment to work in Canada.
“Let’s show them some commitment,” Sweeney said.
Flavio Volpe, president of the Automotive Parts Manufacturers Association, agrees it would be a good idea. He says all companies wanting to invest and produce cars in Canada should be given incentives.
“The President of the United States is using a stick. So let’s find at least one carrot here and throw it into the mix.”
