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Randall Denley: It's not worth a trade war to save Ontario's foreign-owned car plants

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03.09.2026

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Randall Denley: It's not worth a trade war to save Ontario's foreign-owned car plants

Instead of protecting an industry of the past, Canada and Ontario should focus on the industry segment that is truly Canadian: auto parts

The future of Ontario’s auto sector has become a major sticking point in trade negotiations with the U.S. For Ontario Premier Doug Ford, auto parts and manufacturing must be preserved at all costs.

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It’s easy to see why Ford, elected on a promise of job protection, would champion the highly visible auto sector, but is this the right battle to fight?

Randall Denley: It's not worth a trade war to save Ontario's foreign-owned car plants Back to video

The so-called Canadian vehicle-assembly industry is foreign-owned and dependent on a steady flow of government subsidies. No matter how much federal and provincial governments “invest” in the industry, Ontario’s auto plants are always just one corporate or political decision away from pulling up stakes.

Despite government assistance, vehicle assembly in Ontario has declined steadily from its 1999 peak of just over three million vehicles to 1.2 million in 2025. The share produced by America’s Big Three companies has atrophied from half the Canadian total historically to just under one-quarter now.

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