Toyota, Honda form new Canadian lobby group as industry faces challenges

Honda employees work along the vehicle assembly line before an event announcing plans for a Honda electric vehicle battery plant in Alliston, Ont., on April 25, 2024. THE CANADIAN PRESS/Nathan Denette

TORONTO — Toyota and Honda have formed a new lobby group called the Pacific Manufacturing Association of Canada as the country’s automotive industry faces significant challenges.

The two Japanese companies accounted for about three-quarters of vehicles produced in Canada last year, after a series of production pullbacks by the Detroit Three automakers.

The new industry association comes as Canada’s manufacturing sector struggles under tariffs imposed by the United States that are disrupting the supply chains built on a free flow of goods across the border.

PMAC chief executive Brendan Sweeney said trade policies will be a key priority.

“Where we’re also going to be focused a lot is on trade, tariffs, CUSMA negotiations, conversations, whatever that looks like, because it’s really important to have tariff-free access to the U.S. market.”

He said he’s optimistic on the trade outcome because it makes sense to keep working together for a competitive automotive industry, but also realistic on the challenges of navigating the Trump administration.

“It’s going to take a lot of work to get there, and a lot of communication and collaboration with our government partners, with the global automakers, and with the other organizations in our world that are pulling in the same direction.”

Toyota and Honda will still be part of Global Automakers of Canada, which represents 16 companies including Volkswagen, Hyundai and Subaru, but the new group will be able to focus more specifically on production questions, Sweeney said.

“There’s so much work to do on so many different files, that having an organization that really just focused on representing the manufacturing aspects of what Honda and Toyota do in Canada was really important.”

The new group also comes as Canada moves to reopen the door to Chinese electric vehicles that are quickly gaining ground in numerous global markets, and as the federal government works towards revising its approach to crediting Canadian production to help offset tariffs.

Sweeney said PMAC will have more to say ahead on issues like tariff remissions, electric vehicle policies and the federal automotive strategy.

The association includes Honda Canada Inc. and Toyota Canada Inc., as well as Honda of Canada Mfg. and Toyota Motor Manufacturing Canada, which run their respective assembly plants.

Honda produced 401,000 Civics and CR-Vs in Canada last year, while Toyota assembled about 537,500 RAV4s and Lexus SUVs.

This report by The Canadian Press was first published April 15, 2026.