Automotive Manufacturing

• Passenger vehicles
• Light trucks
• Powertrain components
• Stamped body panels
• Transmission assemblies

1. 1

   Accelerate EV battery and powertrain investment to secure next-gen mandates

2. 2

   Diversify export markets through CPTPP and Canada-EU CETA agreements

3. 3

   Strengthen domestic supply chain resilience through onshoring critical components

4. 4

   Lobby for enhanced CUSMA dispute resolution mechanisms

5. 5

   Invest in workforce retraining for electric and autonomous vehicle production

CUSMA rules of origin require 75% regional value content for duty-free treatment, up from 62.5% under NAFTA. Canadian assembly plants face compliance costs exceeding $400M annually to meet stricter labour value content thresholds. Disruption to CUSMA provisions would expose Canadian-assembled vehicles to a potential 25% tariff at the US border.

Deeply integrated cross-border supply chains see parts crossing the US-Canada border up to eight times before final assembly. A single tariff event disrupts just-in-time delivery models across Ontario's assembly corridor. Tier-1 and Tier-2 suppliers in Windsor-Essex and Oshawa face existential risk from nearshoring pressures.

Canada competes directly with Mexico and US southern states for new assembly mandates. The weaker Canadian dollar partially offsets higher labour costs relative to Mexico. OEM investment decisions for next-generation EV platforms will determine the sector's trajectory through 2035.