Over the past ten years, the Detroit Three automakers have reduced their vehicle production in Canada, while Japanese automakers have maintained a consistent presence in the country, a recent report reveals. The study by the Trillium Network for Advanced Manufacturing at Western University indicates a decline in the overall number of vehicles manufactured in Canada from 2.3 million in 2016 to 1.2 million in 2025.
The decrease in production is primarily attributed to reduced output from U.S.-based automakers Ford, Stellantis, and General Motors, collectively known as the Detroit Three. In 2016, these companies manufactured 56% of the vehicles in Canada, which decreased to 23% in 2025. Meanwhile, Japanese automakers Honda and Toyota increased their share from 44% to 77% during the same period, solidifying their position in Canada’s vehicle manufacturing industry.
Furthermore, in terms of employment at assembly plants, Japanese automakers have surpassed the Detroit Three. Jobs with U.S.-based automakers accounted for 60% of assembly employment in 2015, dropping to 38% in 2024, while jobs with Japanese companies represented over 60% of auto assembly employment in 2024.
Brendan Sweeney, managing director of the Trillium Network, highlighted the contrasting strategies of U.S. and Japanese companies in Canada over the past decade. Sweeney noted the gradual shift of U.S.-based automakers away from Canada, emphasizing the popularity of vehicles like the Honda Civic and Toyota’s Rav 4 in North America as a contributing factor to sustained Japanese production in the country.
The report also mentioned recent developments in the industry, such as GM’s decision to cease production of BrightDrop electric delivery vans in Ingersoll, Ont., and the retooling of Stellantis and Ford plants in Brampton and Oakville, respectively, for new vehicle models. Despite challenges like U.S. tariffs affecting Canadian-made vehicles, the industry has been facing various obstacles, with U.S.-based automakers reducing production even before the trade war.
While the report has drawn attention to vehicle production and the contributions of the Detroit Three to research and development and auto parts manufacturing, Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association, emphasized the broader impact of these companies on Canada’s automotive industry. Kingston highlighted ongoing investments in battery manufacturing plants and assembly plants as indications of the Detroit Three’s commitment to Canada.
As the federal government prepares to unveil its automotive strategy, stakeholders like Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, advocate for incentives to support companies investing in and manufacturing vehicles in Canada. The industry experts call for a balanced approach to encourage continued investment and growth in Canada’s automotive sector.
