General Motors plans to invest C$1.1 billion ($791 million) in its Canadian operations as part of a tentative labor agreement that includes new production commitments—amid mounting pressure from U.S. tariffs on the country’s auto industry, Reuters reported on Saturday.
The agreement with the Unifor union, which represents 4,600 GM workers in Ontario, provides for the production of the next generation of GMC Sierra heavy-duty pickup trucks at the company’s assembly plant in Oshawa.
GM plans to invest C$144 million in the Oshawa plant to launch the new production line, according to a union report on the negotiations. The broader investment package also includes a previously announced C$691 million to support the production of new V8 engines in Ontario.
Another C$215 million will be allocated to GM’s St. Catharines plant for the assembly of next-generation transmissions, with production scheduled to begin in late 2029.
The tentative agreement also provides certain protections for GM’s CAMI assembly plant in Ingersoll. The company has committed not to close or sell the facility while it explores alternative production options. The plant will be given priority for potential orders from the Canadian Armed Forces should GM secure a defense contract.
Workers are voting on the agreement this Saturday and Sunday.
These commitments come as Canada’s automotive sector faces 25% U.S. tariffs on vehicles. President Donald Trump has stated that tariffs on Canadian passenger vehicles, trucks, auto parts, and steel will rise to 50% starting January 1, 2027.
The future of Canadian auto manufacturing has become a key issue in trade negotiations between Washington and Ottawa. Negotiations concluded last week without an agreement; tariffs on medium- and heavy-duty vehicles remained among the unresolved issues.
Canada stated that any trade agreement must protect its well-established domestic vehicle assembly and auto parts manufacturing industry. U.S. Trade Representative Howard Lutnick reported that Canadian negotiators put forward demands regarding medium- and heavy-duty trucks shortly before the final negotiating deadline expired.
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