GM Bets C$1.1 Billion on Ontario Amid Escalating Tariff War
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General Motors is preparing to commit about C$1.1 billion to its Ontario manufacturing operations under tentative new agreements with Unifor, reinforcing the future of several Canadian facilities as the auto industry faces mounting pressure from U.S. tariffs.
The tentative agreements cover more than 4,600 unionized workers at GM's Oshawa Assembly Plant, CAMI Assembly in Ingersoll, St. Catharines Propulsion Plant and the Woodstock Parts Distribution Centre. Union members are scheduled to vote on ratification during meetings on August 29 and 30.
Under the investment package, GM plans to spend about C$144 million at Oshawa Assembly to add production of the next-generation heavy-duty GMC Sierra pickup, strengthening the Ontario plant's role in the automaker's North American truck operations.
Another C$215 million is expected to go to the St. Catharines facility for production of a new generation of transmissions beginning in late 2029.
GM has also committed not to close or sell its CAMI Assembly plant in Ingersoll while the company evaluates alternative production opportunities for the facility. The plant could receive priority for potential Canadian Armed Forces work if GM succeeds in securing a future defence contract.
The full C$1.1-billion figure does not represent entirely new spending announced this weekend. It includes a previously announced C$691-million investment at St. Catharines to support production of GM's sixth-generation V8 engines for full-size trucks and SUVs.
The commitments come at a particularly sensitive moment for Canada's automotive industry. Canadian-made vehicles are already facing U.S. tariffs, while President Donald Trump has said duties on Canadian cars, trucks, auto parts and steel will rise to 50% on January 1, 2027. The future of Canada's vehicle assembly and parts industry has consequently become a central issue in the stalled trade negotiations between Ottawa and Washington.
GM said before the latest negotiations that it had invested approximately C$3.3 billion in Canadian manufacturing since 2020, supporting next-generation products and thousands of Canadian jobs.
For Ontario, the latest commitments offer an important measure of stability for Oshawa and St. Catharines at a time when tariff uncertainty is raising broader questions about where automakers will place future North American production.
