Detroit Three’s Auto Output Falls in Canada as Japanese Makers Lead, Report Finds
The automotive landscape in Canada has seen notable shifts over the past decade. A recent report by the Trillium Network for Advanced Manufacturing highlights a significant decrease in the production of vehicles by the Detroit Three automotive manufacturers. Meanwhile, Japanese automakers have consistently increased their manufacturing presence in the country.
Decline in Detroit Three Production
Data shows a drastic reduction in the number of vehicles produced in Canada by U.S.-based automakers, including Ford, Stellantis, and General Motors. In 2016, these companies accounted for 56% of the total vehicle output in Canada. By 2025, their share plummeted to just 23%.
- 2016 Vehicle Production: 2.3 million units
- 2025 Vehicle Production: 1.2 million units
- Detroit Three Share in 2016: 56%
- Detroit Three Share in 2025: 23%
Rise of Japanese Automakers
In stark contrast, Japanese manufacturers such as Honda and Toyota have grown their output in Canada. Their production share rose from 44% in 2016 to an impressive 77% in 2025. This trend showcases their commitment to the Canadian market.
Impact on Employment
The employment landscape in assembly plants has also shifted dramatically. In 2015, jobs related to the Detroit Three comprised 60% of total automotive employment in Canada. By 2024, this figure is projected to drop to 38%. Conversely, Japanese companies are set to account for over 60% of assembly-related jobs by that time.
- Detroit Three Employment in 2015: 60%
- Projected Employment in 2024: 38%
- Japanese Automakers Share of Employment in 2024: Over 60%
Industry Challenges and Future Prospects
Brendan Sweeney, the managing director of the Trillium Network, notes a long-term trend of U.S. automakers reducing their operations in Canada. He attributes this change to differing priorities between Japanese and U.S. manufacturers regarding their business strategies in the region.
Meanwhile, General Motors recently announced the cessation of BrightDrop electric delivery van production at its Ingersoll plant. This decision could lead to the loss of 1,200 jobs across the supply chain.
Stellantis and Ford also faced challenges. A Stellantis plant in Brampton and a Ford facility in Oakville have been shut down for retooling since 2024, affecting production capacity. However, Stellantis has indicated plans to revive its third shift in Windsor due to anticipated demand.
Government Policy and Future Investments
The automotive sector has been further impacted by tariffs, particularly a 25% tariff on Canadian-made vehicles under U.S. trade policies. This has compounded the existing decline in production by U.S. automakers, which had begun before these tariffs were implemented.
Looking ahead, the Canadian government is expected to unveil its new automotive strategy. Sweeney suggests that it should include incentives for companies committed to manufacturing in Canada, especially considering the changing dynamics of the industry.
Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, emphasizes the need for an incentive structure to attract companies willing to invest and produce in Canada, ensuring a more competitive automotive landscape.
As Canada navigates the future of its automotive industry, the emergence of Japanese manufacturers alongside the challenges faced by the Detroit Three creates a complex but intriguing scenario for stakeholders.
