GM Plans C$1.1 Billion Canada Investment Amid U.S. Tariff Pressure

General Motors (GM) 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, Reuters reported. The investment comes as Canada’s auto industry faces growing pressure from U.S. tariffs.

The tentative deal was reached with Unifor, which represents about 4,600 GM employees in Ontario. A major part of the agreement involves bringing production of the next-generation heavy-duty GMC Sierra pickup truck to GM’s Oshawa assembly plant.

According to a union bargaining report, GM will invest C$144 million in Oshawa to prepare the facility for the new vehicle. The broader package also incorporates a previously announced C$691 million investment supporting production of new V8 engines in Ontario.

GM will also direct another C$215 million to its St. Catharines facility. The investment will support assembly of a new generation of transmissions, with production expected to begin in late 2029.

The agreement provides additional assurances for GM’s CAMI assembly plant in Ingersoll. GM has committed not to close or sell the facility while it evaluates alternative manufacturing opportunities. CAMI would also receive priority for potential Canadian Armed Forces production if GM wins a defense contract.

Unifor members are voting on the tentative agreement over the weekend.

GM’s Canadian investment plans arrive at a challenging time for the country’s automotive sector. Canadian vehicles currently face 25% U.S. tariffs, while President Donald Trump has said duties covering Canadian cars, trucks, automotive parts and steel will increase to 50% beginning Jan. 1, 2027.

The future of Canadian auto manufacturing has consequently become a major issue in trade negotiations between Ottawa and Washington. The latest round of talks ended last week without an agreement, leaving tariffs on medium- and heavy-duty vehicles among the unresolved issues.

Canada has maintained that any new trade agreement must safeguard a strong domestic vehicle assembly and auto parts industry. U.S. Commerce Secretary Howard Lutnick said Canadian negotiators introduced demands involving medium- and heavy-duty trucks shortly before the latest negotiating deadline.