Federal automotive strategy needs to reward Canadian production: report

Honda employees work along the vehicle assembly line in Alliston, Ont., on Thursday, April 25, 2024. THE CANADIAN PRESS/Nathan Denette.

TORONTO — 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 Honda accounted for 62 per cent of assembly plant employment in Canada at the end of 2024, up from 40 per cent in 2015. The two Japanese automakers also produced 77 per cent of the vehicles assembled in Canada in 2025, up from 44 per cent a decade ago.

While some of the change is from factors like Ford working to retool its Oakville, Ont., assembly plant, the Detroit-based automaker did also push back EV production slated there for 2025 by two years, only to change plans again and is now working to start production of gasoline-powered pickup trucks later this year.

Trillium says the frequent idling and underuse of U.S. plants have also pushed down productivity in the sector and led to often prolonged layoffs, while Japan-based automakers are leading the way on productivity.

With Ottawa set to release its automotive strategy this month, the group says it should reward and incentivize companies that have consistently invested and grown their Canadian footprint, and encourage the use of Canadian-made production technologies in plants.

This report by The Canadian Press was first published Feb. 2, 2026.