The Trump administration’s trade agenda and Canada’s retaliatory tariffs have created an uncertain future for Canadian automotive manufacturing. The GM Oshawa assembly plant that builds full-size trucks, specifically, the Chevy Silverado, could be retooled to build military vehicles if it follows the suggestion of Canada Industry Minister Melanie Joly.
“This is an opportunity we haven’t seen since the Second World War in Canada to build in Canada and to help sectors that are affected by the tariffs,” Joly said of her recent visit to the plant, according to Automotive News. “So that’s also why I was at GM in Oshawa.”
She was referring to an opportunity to bolster the Canadian defense sector by using manufacturing capacity at the Oshawa plant. The General Motors truck factory is reducing work from three shifts to two and shifting the annual production of some 50,000 Silverado models from Canada to the U.S. starting this fall.
“We were pleased to welcome the Minister of Industry, Melanie Joly, to our Oshawa plant to meet with,” GM Canada workers said in a statement.
Joly’s suggestion to build military vehicles at the GM Oshawa plant is in line with the Canadian federal government’s plans to spend 1.4 percent of its GDP on defense spending in 2025. It plans to bring that number up to 2 percent by the end of the decade, in accordance with NATO guidelines.
GM Defense Canada, a subsidiary of GM Defense, was awarded a CA$35.8 million contract by the Canadian military in 2024 to build 90 light tactical vehicles. GM Canada told Automotive News at the time that it would be “utilizing our production line in Charlotte, North Carolina” to build the vehicles. “Additional upfits for the vehicles will be directed to Canadian suppliers when feasible,” the automaker said. “We are also pursuing other defense programs in Canada, which, if successful, will be built in Canada by a Canadian workforce and supported by Canadian suppliers.” GM Defense has shown a prototype military vehicle (pictured above) based on the Chevy Silverado 2500 HD ZR2, which is already built at the Oshawa plant.
When reached for comment about the idea of assembling GM Defense vehicles at Oshawa, General Motors kind of changed the subject. “Last year, GM Defense Canada won an award to provide light tactical vehicles to the Canadian Armed Forces for deployment in Latvia and looks forward to competing on future defence [sic] procurement opportunities,” the company said on Friday.
Comments
Sure, I support US manufacturing, but since 1960 auto pact plus Trump’s USMCA, the US and Canada have been treated like one market.
Maybe Canada should stop discounting Alberta tar sands oil, build it’s own refineries, and double the price of Canadian electric sold to US states? Already, Carney is looking at ways to sell more oil to Asia at a higher price since Trump fais to honor the US-Canada special relationship.
Also, Trump is screwing GM’s S Korean operations and he negociated that deal in 2018 meaning GM is breaking no law. First, GM will die if it becomes a solely Americas OEM. S Korean factories are already built, modern and most nations enjoy free trade with them. GM will loose 5 billion in profit this year due to tariffs when it could be using that money to re-enter Europe as China fades. This move would, for a short while, aid Chinese factory utilization. GM needs another big market and EU is only choice.
Buick isn’t tarnished like Chevrolet and has a higher quality line up capable of besting VW, Peugeot and Opel. The new Electra EVs are better than anything produced by Audi and design is better than Tesla. US Ultium is good but these are better. Bolt could easily get a new nose and be rebadged. GM would only need a Corsa and Astra/Jetta rival. Buick, and Cadillac, not having a dealer network would be a plus, and RHD offering could be shared w/Australia, NZ, SA.
Thank you Stephen. Everyone that complains about GM. management or G.M. in
GENERAL ( Heee Heee GET IT ?? ) should read your comments. Finally people who put out accurate information. GOD bless You.
Canadian built Military vehicles so to US at full tariff. Ironic.
GM Canada has a great history of building Military Vehicles including Tanks, Personnel Carriers and, yes, even Airplanes. There’s no reason why that couldn’t happen again, especially if Canada is going to increase it’s Military over the next years. Why not build what’s needed by Canada in Canada. Oshawa has a fantastic reputation within GM as a “Flex” plant. Quite capable.