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Federal automotive strategy needs to reward Canadian production: report

Trillium calls for incentives to boost Canadian auto production as Japanese automakers now account for 77% of vehicles assembled, amid shrinking U.S. plant activity.

  • On Feb. 2, 2026, the Trillium Network urged Ottawa to leverage Canada's vehicle purchases of about 1.9 million last year and incentivize companies as the federal automotive strategy is due this month.
  • Over the past decade, vehicle assembly in Canada declined from 2.3 million in 2016 to 1.2 million last year, largely due to reduced output from Ford, Stellantis, and General Motors.
  • Ford has retooled Oakville and delayed EV output, now planning gasoline pickup production later this year, and several plants were shut since 2024 for retooling.
  • Trillium warned that frequent idling and underuse of U.S.-based plants has pushed down productivity, while Brian Kingston, chief executive of the Canadian Vehicle Manufacturers' Association, said the Detroit Three's footprint is far larger than reported.
  • The federal government announced a memorandum of understanding with the Republic of Korea and a deal to import 49,000 Chinese EVs at low tariffs, amid U.S. tariffs at 25 per cent.
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Federal automotive strategy needs to reward Canadian production: report

As the profile of Canada’s automotive sector shifts dramatically, a new report is pushing the federal government to reward automotive companies that are committed to the country. The report from the Trillium Network for Advanced Manufacturing notes that the last decade has seen U.S. automakers significantly shrink their Canadian footprint, while Japanese companies have kept production and employment steady. The diverging trends mean Toyota and H…

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While the profile of the Canadian automotive sector is undergoing a radical transformation, a new report encourages the federal government to reward those automobile companies that are committed to the country.

·Montreal, Canada
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St Catharines Standard broke the news in Welland, Canada on Monday, February 2, 2026.
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