Over the last decade, there has been a decline in car production by the Detroit Three automakers in Canada, while Japanese car manufacturers have maintained a steady presence, as per a recent report. The study conducted by the Trillium Network for Advanced Manufacturing, an analytical body at Western University focusing on Ontario manufacturing, reveals a decrease in the total number of cars manufactured in Canada compared to ten years ago. In 2016, the country assembled 2.3 million cars, a figure that dropped to 1.2 million by 2025.
The reduction can be mainly attributed to decreased production from U.S.-based automakers Ford, Stellantis, and General Motors, collectively known as the Detroit Three. These companies accounted for 56 percent of car production in Canada in 2016, which significantly declined to 23 percent by 2025. Meanwhile, the share of vehicles manufactured in Canada by Japanese automakers Honda and Toyota rose from 44 percent to 77 percent during the same period, with these five companies dominating the Canadian vehicle manufacturing industry.
In terms of employment in assembly plants, the report highlights that Japanese automakers are surpassing the Detroit Three. Jobs with U.S.-based automakers constituted 60 percent of assembly employment in Canada in 2015, dropping to 38 percent by 2024, while jobs with Japanese companies accounted for over 60 percent of auto assembly employment in 2024.
Brendan Sweeney, the managing director of Trillium Network, noted that the shift in the industry dynamics over the past decade showcases differing business strategies between U.S. and Japanese companies operating in Canada. Notably, popular models like the Honda Civic and Toyota’s Rav 4, assembled in Canada, contribute to the sustained production by Japanese manufacturers, which aligns with their priorities in the region.
In 2025, General Motors announced the discontinuation of production of its BrightDrop electric delivery vans at a plant in Ingersoll, Ont., along with a shift cut at its Oshawa, Ont., facility, leading to anticipated job losses for 1,200 auto workers across the supply chain.
Furthermore, Stellantis and Ford plants in Brampton and Oakville have been undergoing retooling since 2024 for the production of new vehicles. The retooling process at the Brampton plant has been paused, whereas it continues as planned at the Oakville facility. Stellantis also initially reduced a shift at its Windsor, Ont., plant but later reintroduced a third shift owing to anticipated increased demand.
The imposition of 25 percent tariffs on Canadian-made vehicles by U.S. President Donald Trump has significantly impacted the industry, although Sweeney highlights that U.S.-based automakers were already scaling down their production in Canada even before the trade war, emphasizing the challenges faced by the sector over the past 25 years.
Brian Kingston, the president and CEO of the Canadian Vehicle Manufacturers’ Association, expressed that the report’s focus on vehicle production and the Detroit Three’s contributions to research and development overlooks the broader impact and commitment of these automakers to Canada. Kingston emphasized the ongoing investments in battery manufacturing plants and Ford’s retooling efforts as indicative of the Detroit Three’s dedication to the Canadian market.
As the federal government prepares to unveil its automotive strategy, Sweeney hopes for incentives rewarding companies demonstrating a commitment to Canada, echoing Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, who advocates for extending incentives to all companies willing to invest in Canadian auto production.
Despite the challenges, the automotive industry continues to evolve, with ongoing investments and commitments shaping the future landscape of vehicle manufacturing in Canada.