Auto manufacturing means jobs up and down the value chain, advancements in innovation, research, and development of new products and manufacturing processes, as well as tax revenues and economic prosperity for communities across Canada. Canadian competitiveness for investment is critical as automotive assembly provides the anchor for the broader ecosystem, including parts manufacturing, the battery supply chain, and research and development facilities. Automotive manufacturing investment decisions have never been more globally competitive or complex. Federal and provincial policies must provide the certainty and predictability that industry needs for investment with competitive, flexible, and nimble support measures.
Canada’s auto manufacturing sector is a leader in the advancement of innovative technologies in both manufacturing and product development. It is a key driver of the Canadian economy as the second highest export at $43B (2024) and is an anchor for economic spinoff due to its 7 to 9/1 job multiplier – the highest of any manufacturing sector. Canada’s auto assembly facilities are leaders in advanced manufacturing that supports research and innovation by connecting Canadian universities with global hubs for automotive research and investment.
Table Reference: “Global Auto Report”, Scotiabank Global Economics, July 9, 2025.
All levels of government need to adopt manufacturing policies and programs that keep Canada competitive and provide predictability to maintain the domestic footprint. These include:
- Globally competitive, flexible, investment and innovation incentives to attract and sustain automotive production mandates.
- Trade agreements that support Canadian based auto companies and meaningful access to new markets for Canadian-produced vehicles.
- Electric Vehicle (EV) policies that support consumer adoption of electrified vehicles.
- North American harmonized vehicle regulations which enable automakers to continue to design and build once for the North American marketplace, cost efficiently.
- An innovation ecosystem and talent base that helps grow Canada-based advanced engineering and R&D collaboration with universities and suppliers for global supply, (not just local plants).
- Border, ports and transportation infrastructure that is efficient and cost competitive to support the “just in time” supply of parts and components and allows for efficient movement of finished product to export markets.