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Tariffs

Ontario's Auto Industry Under Siege: Tariffs Threaten Hundreds of Thousands of Jobs

Strategic Insights

— 2 min read

The North American automotive supply chain is facing unprecedented uncertainty due to U.S. President Donald Trump's tariffs on imported cars, including those from Canada and Mexico. Since the announcement, three of Ontario's eight auto assembly plants have introduced significant changes, including thousands of layoffs, production cuts, and temporary shutdowns. A fourth plant, undergoing retooling, has paused its refit, extending its closing timeline well into next year. Trump's goal of eliminating Canadian auto production may be within reach, at least for now.

Key Takeaways:

  • Three of Ontario's eight auto assembly plants have announced changes, including thousands of layoffs, production cuts, and temporary shutdowns.
  • A fourth plant, undergoing retooling, has paused its refit, extending its closing timeline well into next year.
  • Honda and Toyota together account for 953,000 vehicles produced in Ontario in 2024, with plants in Alliston, Cambridge, and Woodstock maintaining production and employment levels.
  • Oshawa General Motors will eliminate one of three production shifts at its Chevrolet Silverado plant, laying off 700 employees by the fall.
  • Ingersoll GM's CAMI factory in Ingersoll will close in May and reopen in October, eliminating about 500 of 1,300 hourly jobs.
  • Windsor Stellantis's assembly plant in Windsor was closed for two weeks in April and will see rolling production cuts and layoffs through to July.
  • Oakville Ford's Oakville plant has been closed since 2024, with 3,200 workers remaining laid off.
  • Brampton's Stellantis plant has 3,000 workers on layoff, awaiting a refit to make Jeeps, with the union fearing no cars will be produced for another 12 months.
  • Ontario's auto production totals 1.3 million vehicles in 2024, with Ford, General Motors, Stellantis, Honda, and Toyota accounting for the majority of production.

Statistics:

  • 3 of 8 Ontario auto assembly plants have introduced significant changes due to U.S. tariffs.
  • 1.3 million vehicles were produced in Ontario in 2024.
  • 953,000 vehicles were produced by Honda and Toyota in Ontario in 2024.
  • 700 employees will be laid off at Oshawa General Motors' Chevrolet Silverado plant by fall 2024.
  • 500 hourly jobs will be eliminated at Ingersoll GM's CAMI factory in Ingersoll.
  • 3,200 workers remain laid off at Oakville Ford's Oakville plant.

Sources:

  • The Globe and Mail (Article Title not provided, published May 2024)
  • Ward's Automotive
  • Bank of Montreal
  • Unifor
  • Stellantis
  • General Motors
  • Ford Motor Co.
  • Toyota
  • McMaster University
  • Greig Mordue, Professor at McMaster University
  • Vito Beato, Unifor local president
  • Lou Ann Gosselin, Stellantis spokesperson
  • James Stewart, president of the Unifor local

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