In the last decade, there has been a decline in Canadian car production by the Detroit Three automakers, while Japanese car manufacturers have maintained a consistent presence in the country. A recent report from the Trillium Network for Advanced Manufacturing at Western University highlighted this trend. The overall number of cars produced in Canada decreased from 2.3 million in 2016 to 1.2 million in 2025, with much of the decrease attributed to reduced output from Ford, Stellantis, and General Motors.
The report revealed that in 2016, the Detroit Three accounted for 56% of car production in Canada, but by 2025, this figure dropped to 23%. On the other hand, Japanese companies like Honda and Toyota saw their share increase from 44% to 77% during the same period. Additionally, Japanese carmakers have been surpassing the Detroit Three in terms of employment in assembly plants, with jobs at Japanese companies making up over 60% of auto assembly employment in 2024.
Brendan Sweeney, the managing director of the Trillium Network, emphasized the shifting priorities of U.S. and Japanese automakers in Canada. He noted a long-term trend of U.S.-based automakers moving away from Canada while Japanese manufacturers like Honda and Toyota continue to invest in the country. Popular models such as the Honda Civic and Toyota’s Rav 4 contribute to Japan’s sustained production in Canada.
Recent developments in the industry include GM’s decision to cease production of BrightDrop electric delivery vans in Ingersoll, Ont., and the reduction of shifts at their Oshawa plant, leading to potential job losses. Similarly, Stellantis and Ford have retooled their Brampton and Oakville plants, respectively, with varying outcomes.
Despite challenges such as U.S. tariffs affecting Canadian-made vehicles, industry experts believe that continued investment and commitment from automakers, including the Detroit Three, are crucial for the sector’s growth. As the federal government prepares to unveil its automotive strategy, industry stakeholders hope for incentives to support companies dedicated to manufacturing in Canada.
