Canadian employees of General Motors (NYSE:GM) have approved a new labor agreement that secures production of a next-generation heavy-duty GMC Sierra truck at the automaker’s Oshawa, Ontario, plant, despite escalating U.S.-Canada trade tensions.
The deal, unveiled by the Canadian union Unifor on Saturday, includes a commitment from GM to invest C$144 million ($103.63 million) in the Oshawa plant. Furthermore, GM has also committed to keeping its CAMI Assembly plant in Ingersoll, Ontario, open for the duration of the agreement.
The automaker’s promise of over C$1 billion ($720 million) in investment in Canadian plants includes a C$691 million ($497.30 million) commitment to support the production of new V8 engines in Ontario, announced earlier in April. Unifor, representing 4,600 GM workers in the province, confirmed these details.
As part of the deal, Canadian workers are set to receive a 3% yearly wage increase over three years. GM Canada President Jack Uppal told the publication that the new agreements improve wages, benefits, and job security, recognize employees’ contributions, and support well-paying automotive jobs in Canada.
According to Barclays research, Canada accounts for approximately 17% of General Motors’ Chevrolet Silverado pickup-truck production, the automaker’s best-selling model.
Trump’s Tariffs Pressure North American Autos
GM’s decision comes amid a tense trade environment between the U.S. and Canada, with President Donald Trump threatening to raise tariffs on Canadian cars, trucks, auto parts, and steel to 50% on Jan. 1, 2027. The move could put additional pressure on automakers with significant exposure to Canadian manufacturing, such as General Motors, Ford Motor (NYSE:F) and Stellantis N.V. (NYSE:STLA).
Trump said companies can avoid the tariffs by shifting production to the U.S., while accusing Canada of a $60 billion trade surplus and restricting American farm imports.
Meanwhile, Trump stated that his administration’s tariffs have been instrumental in making the U.S. auto industry profitable. The President claimed Ford had planned to close a Detroit plant but kept it open after he began leading in polls. He said the facility was operating 24/7 and was highly profitable, while also crediting his policies with reviving and saving the U.S. auto industry.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Jonathan Weiss via Shutterstock
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