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AccountabilityMay 26, 20267 min read
Canada's Auto Industry Before and After 10 Years of Liberal Government: The Numbers
Canadian motor vehicle production fell from 2,393,890 units in 2014 to 1,339,288 units in 2024, a decline of approximately 44 percent over the decade in which the Liberal Party formed federal government. Direct employment in motor vehicle and parts manufacturing stands at around 130,000 today, down from earlier levels; the broader automotive sector (including parts, sales, and services) employs roughly 603,500 across the country. Between Decembers 2024 and 2025 alone, the automotive sector shed approximately 36,000 jobs (a 2.3% decline) — partly driven by U.S. tariff measures announced in March 2025 by the Trump administration. Over the same period, the federal government and the Government of Ontario committed an unprecedented package of EV-transition subsidies — $13.2B to $16.3B for Volkswagen St. Thomas, up to $15B for Stellantis-LGES NextStar in Windsor, $5B in combined federal/provincial incentives for Honda's $15B Alliston EV ecosystem, plus the now-cancelled Northvolt deal. The Parliamentary Budget Officer's January 2024 analysis estimated the break-even period for the Stellantis-LGES and Volkswagen subsidies at 20 years — four times the government's 5-year projection. Production losses pre-date the 2015 Liberal government: Canadian vehicle output peaked at 2,961,636 units in 2000 and has trended downward through multiple governments. The article walks the decade's record, the structural and political drivers behind it, and what the next decade would have to look like for the industry to recover.

Canada's Auto Industry Before and After 10 Years of Liberal Government: The Numbers

Canadian motor vehicle production fell from 2,393,890 units in 2014 to 1,339,288 units in 2024, a decline of approximately 44 percent over the decade in which the Liberal Party formed federal government. Direct employment in motor vehicle and parts manufacturing stands at around 130,000 today, down from earlier levels; the broader automotive sector (including parts, sales, and services) employs roughly 603,500 across the country. Between Decembers 2024 and 2025 alone, the automotive sector shed approximately 36,000 jobs (a 2.3% decline) — partly driven by U.S. tariff measures announced in March 2025 by the Trump administration. Over the same period, the federal government and the Government of Ontario committed an unprecedented package of EV-transition subsidies — $13.2B to $16.3B for Volkswagen St. Thomas, up to $15B for Stellantis-LGES NextStar in Windsor, $5B in combined federal/provincial incentives for Honda's $15B Alliston EV ecosystem, plus the now-cancelled Northvolt deal. The Parliamentary Budget Officer's January 2024 analysis estimated the break-even period for the Stellantis-LGES and Volkswagen subsidies at 20 years — four times the government's 5-year projection. Production losses pre-date the 2015 Liberal government: Canadian vehicle output peaked at 2,961,636 units in 2000 and has trended downward through multiple governments. The article walks the decade's record, the structural and political drivers behind it, and what the next decade would have to look like for the industry to recover.