The recent decline in Canadian vehicle manufacturing by the Detroit Three automakers has been offset by a consistent presence from Japanese car manufacturers, as outlined in a recent report by the Trillium Network for Advanced Manufacturing. The report highlights a decrease in overall vehicle production in Canada over the past decade, with a notable drop from 2.3 million cars in 2016 to 1.2 million in 2025.
The reduced production figures are primarily attributed to diminished output from U.S.-based automakers Ford, Stellantis, and General Motors, collectively known as the Detroit Three. These companies, which accounted for 56% of vehicle production in Canada in 2016, saw their share decrease to 23% by 2025. In contrast, Japanese automakers Honda and Toyota increased their production share from 44% to 77% during the same period.
In terms of employment at assembly plants, Japanese carmakers have also surpassed the Detroit Three. While U.S.-based automakers held 60% of assembly plant jobs in 2015, this figure dropped to 38% by 2024. Meanwhile, jobs at Japanese companies accounted for over 60% of auto assembly employment as of 2024.
Brendan Sweeney, Managing Director of the Trillium Network, noted that the shift in production reflects differing priorities between U.S. and Japanese automakers operating in Canada. Popular models like the Honda Civic and Toyota Rav 4, assembled in Canada, have contributed to the sustained production by Japanese manufacturers.
Recent developments include GM’s decision to cease production of its BrightDrop electric delivery vans in Ingersoll, Ont., and the retooling of Stellantis and Ford plants in Brampton and Oakville, respectively. Despite challenges such as U.S. tariffs impacting Canadian-made vehicles, industry experts emphasize the ongoing commitment of U.S.-based automakers to Canada, citing investments in facilities and job creation.
As Canada prepares to unveil its automotive strategy, stakeholders hope for incentives to encourage continued investment and production within the country. Emphasizing collaboration and support for companies dedicated to operating in Canada is seen as crucial in navigating the evolving landscape of the auto industry.