The Detroit Three automakers have reduced their car production in Canada over the past decade, while Japanese automakers have maintained a steady presence in the country, a recent report reveals. The research conducted by the Trillium Network for Advanced Manufacturing, a non-profit organization based at Western University, highlights a decline in the overall number of cars manufactured in Canada from 2.3 million in 2016 to 1.2 million in 2025.
The decrease in production is primarily attributed to decreased output from U.S.-based automakers Ford, Stellantis, and General Motors, collectively known as the Detroit Three. In 2016, these companies accounted for 56% of Canadian car production, but by 2025, their share had dropped to 23%. Conversely, Japanese automakers Honda and Toyota saw their production share increase from 44% to 77% during the same period.
The report also indicates that Japanese automakers have surpassed the Detroit Three in employment within assembly plants. U.S.-based automakers’ employment in this sector decreased from 60% in 2015 to 38% in 2024, while Japanese companies’ employment share surpassed 60% by 2024.
Brendan Sweeney, the managing director of the Trillium Network, suggests that the contrasting trends between U.S. and Japanese automakers in Canada reflect distinct business priorities. He notes a gradual shift by U.S.-based automakers away from Canada over the past decade.
Furthermore, the report mentions that popular models like the Honda Civic and Toyota Rav4, assembled in Canada, have contributed to Japan’s sustained production levels in the country. Amid industry changes, General Motors announced the discontinuation of BrightDrop electric delivery van production in Ingersoll, Ont., and a shift reduction at its Oshawa, Ont., plant, impacting around 1,200 auto workers.
The automotive industry in Canada faces challenges, including U.S. President Donald Trump’s tariffs, which have imposed a 25% tariff on Canadian-made vehicles. However, industry experts suggest that the trade war is just one of many obstacles impacting the sector, with a long history of evolving dynamics.
While the report emphasizes the decline in vehicle production by the Detroit Three, Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers’ Association, believes that the report overlooks the broader contributions of these companies to research, development, and auto parts production in Canada.
Looking ahead, as the federal government prepares to unveil its automotive strategy, there are calls for incentives to support companies committed to manufacturing in Canada. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, advocates for rewarding all companies investing in Canadian production as a strategic move amid industry challenges.