Canadian light vehicle assembly has stepped into a period of structural change and the result is lower overall volumes, according DesRosiers Automotive Consultants.
In a recent update, DAC said Canadian light vehicle production has faced many challenges that have extended over a long period of time. In 2000, when production was at 2.915 million, for example, volumes declined through the century — “falling to a nadir” in 2021 — thanks to pandemic disruptions and semiconductor shortages. In the end, the assembly total was 1.103 million.
“Since then, Canadian light vehicle assembly has entered a period of structural change,” said DAC. “Production increased in 2022 and 2023, but with significant re-tooling at some Canadian plants ongoing throughout much of 2024, production volumes dropped to 1.294 million units.”
Toyota was the “Canadian” volume leader in 2024, with 533,566 units produced for the year. Honda and General Motors enjoyed growth, climbing to 420,550 and 149,506 units, respectively. And Ford and Stellantis, both managing plant retooling projects, saw units decline in 2024. This structural shift was supposed to boost light vehicle production over the years, but tariffs on Canadian-produced vehicles coming into the United States “now make the future direction uncertain,” said DAC.
“Canadian assembly has been in a tough spot since the pandemic, but significant investments have been made to pave a path for future growth,” said Andrew King, Managing Partner at DAC, in a statement. “The unjustified trade hostility from the United States now places this at risk, potentially punishing the industry and consumers on both sides of the border.”
