Ford and GM Will Have to Pay Tariffs on Cars Made in Canada

GM workers in Canada approved a deal to produce the next-gen GMC Sierra in Ontario. The automaker will invest $103.9M in the plant and $720M total in Canadian facilities. The agreement includes 3% annual wage increases. GM aims to secure jobs amid U.S. tariffs on Canadian vehicles, which could double to 50% by 2027. U.S.-Canada trade talks are stalled.

Ford is recalling 148,663 U.S. vehicles (2024-2026 Mustang) due to potential power loss and reduced visibility. The issue stems from engine compartment wiring harness ground connections, according to the NHTSA. Dealers will replace the affected parts free of charge. This follows a previous recall in June for daytime running lamp issues.

Unifor members ratified new three-year contracts with GM Canada, securing over C$1 billion in investments for Ontario facilities. The agreements include production of the next-gen GMC Sierra HD and a new transmission program, with worker wage increases and bonuses. GM has committed to keeping the CAMI plant for potential defense work.

Unifor members approved a new contract with General Motors, securing 3% annual wage increases for full-rate and skilled trade workers, bonuses, and healthcare benefits. GM will invest $144M CAD in Oshawa Assembly for next-gen GMC Sierra HD and $215M CAD in St. Catharines Propulsion for a new transmission, creating 250 jobs. The future of CAMI Assembly remains uncertain.

GM Canada workers approved a 3-year deal securing C$144M investment for GMC Sierra Heavy Duty production in Oshawa. GM committed over C$1B to Canadian manufacturing, including V8 engine production. The deal includes wage increases and job security guarantees. GM Canada's Jack Uppal highlighted improvements in wages, benefits, and job security. Canadian plants produce 17% of Chevrolet Silverado trucks, per Barclays.

Unifor members at General Motors ratified new contracts, with 80.5% to 96.5% approval. The three-year deals raise wages to $50.20/hour for production workers and $62.71/hour for skilled trades. GM committed over $1B in Canadian facility investments, including $144M for Oshawa and $215M for St. Catharines. The union continues to push for production resumption at the idled CAMI Assembly Plant in Ingersoll.