Tentative agreement includes new GMC Sierra production and commitments to Ontario plants
General Motors plans to invest C$1.1 billion ($791 million) in its Canadian operations under a tentative agreement with the Unifor union, as the country’s auto industry faces mounting pressure from US tariffs.
The agreement covers 4,600 union workers in Ontario and includes plans to invest C$144 million to add next-generation heavy-duty GMC Sierra pickup production at GM’s Oshawa plant.
GM would also commit C$691 million toward previously announced investment supporting production of new V8 engines in Ontario, while another C$215 million would fund production of a new-generation transmission at the company’s St. Catharines facility from late 2029.
The deal is subject to approval by union members voting on Saturday and Sunday.
US tariffs put Canadian auto sector under pressure
The agreement comes as Canada’s automotive industry confronts 25% US tariffs on vehicles, with President Donald Trump pledging to raise tariffs on Canadian cars and trucks to 50% from January 1, 2027.
The future of Canadian auto plants has become a key issue in stalled US-Canada trade negotiations. Canada has said it will not accept a trade agreement that fails to protect its auto assembly and parts industries.
Under the tentative agreement, GM would also pledge not to immediately close or sell its CAMI assembly plant in Ingersoll, Ontario, while the company examines alternative production options.
The plant would receive priority for potential defence-related production for the Canadian Armed Forces if GM secures a government contract.
The agreement follows growing uncertainty over Canada’s automotive manufacturing base as higher US tariffs threaten the competitiveness of vehicles and parts produced in the country.