While the Detroit Three automakers have reduced their car production in Canada over the last ten years, Japanese car manufacturers have maintained a steady presence in the country, as per a recent report.
Research conducted by the Trillium Network for Advanced Manufacturing, a non-profit organization at Western University focusing on analyzing manufacturing in Ontario, indicates a decline in the total number of cars manufactured in Canada compared to a decade ago. In 2016, the country produced 2.3 million cars, which dropped to 1.2 million by 2025.
The decrease is mainly attributed to diminished production from U.S.-based automakers Ford, Stellantis, and General Motors—collectively known as the Detroit Three—according to the report.
In 2016, these three companies were responsible for 56% of the cars manufactured in Canada, but this share fell to 23% in 2025. Meanwhile, Japanese automakers Honda and Toyota saw an increase in their production share in Canada from 44% to 77% during the same period. These five companies predominantly make up Canada’s vehicle manufacturing industry.
Regarding employment in assembly plants, the Trillium Network reports that Japanese automakers are surpassing the Detroit Three. Employment with U.S.-based automakers accounted for 60% of all such jobs in Canada in 2015 but decreased to 38% by 2024. Meanwhile, jobs with Japanese companies constituted slightly over 60% of auto assembly employment as of 2024.
Brendan Sweeney, the managing director of the Trillium Network, highlighted how the U.S. and Japanese companies have divergent strategies when it comes to operating in Canada over the past decade.
“There’s a clear long-term trend of U.S.-based automakers moving away from Canada,” stated Sweeney. Some Japanese models built in Canada, like the Honda Civic and Toyota’s Rav 4, are also highly sought-after in North America, potentially contributing to Japan’s continuous production in the region.
In 2025, GM announced the discontinuation of its BrightDrop electric delivery vans production at a plant in Ingersoll, Ont. Additionally, the company reduced a shift at its Oshawa, Ont., plant, which commenced last week and is expected to lead to job cuts for 1,200 auto workers across the supply chain.
Listen to CBC London’s full interview with Kristian Aquilina, president and managing director of GM Canada, discussing the decision to cease BrightDrop electric van production at its CAMI plant in Ingersoll, Ont. Aquil