A new report released today by the Trillium Network for Advanced Manufacturing states that Canadian auto plants are expected to produce about 1.3 million vehicles this year – the lowest number in decades.
According to the report; “By 2023, output had fallen to 1.5 million vehicles, dropping Canada into the 10th spot among the world’s largest vehicle-producing countries. In 2024, that number will be closer to 1.3 million vehicles.”
“This is because several Ontario assembly plants are idled or operating under capacity. Over the past decade, Toyota and Honda have emerged as Canada’s largest vehicle producers. Together, those two companies will account for more than two-thirds of Canadian vehicle production in 2024.”
“Canada’s trade relationship with the United States, and other countries, has received substantial attention since Donald Trump was elected President for the second time in November.” the report stated,
“Much of this attention has focused on the potentially devastating effects of tariffs of up to 25 per cent on goods exported from Canada to the United States. These tariffs are expected to have outsized effects on the highly integrated automotive industry in both Canada and the United States.” it concluded.
Approximately 50% of vehicles sold in Canada are made in U.S. plants, with Mexico holding 15% of the market. Canadian-made vehicles contributed only 9%.
Despite the challenges in vehicle production, Canada’s auto-parts industry continues to grow, with the industry supplying manufacturers across North America.
By CEO NA Editorial Staff
