OTTAWA — The Government of Canada is urging General Motors to relocate production for Canadian military contracts back to Canadian soil, as the country responds to growing economic pressure from U.S. President Donald Trump’s escalating trade war.
Industry Minister Mélanie Joly made the remarks during a visit to GM’s Oshawa Assembly Plant, emphasizing that federal defence spending must translate into job creation and economic growth within Canada. The remarks follow the awarding of a $35.8 million federal contract in 2023 to GM Defense Canada to supply 90 light tactical vehicles for the Canadian Armed Forces, based on the Oshawa-made Chevrolet Silverado. Despite the Canadian branding, the vehicles are currently manufactured in a GM facility in North Carolina.
“This is an opportunity we haven’t seen since the Second World War,” said Minister Joly. “Canada will be investing more than ever in defence. These investments must enable jobs in Canada. I’m convinced that we have fantastic Canadian workers who are ready to build for our men and women in uniform.”
Minister Joly confirmed she met with GM executives and unionized workers, while Defence Minister David McGuinty is also engaging with the automaker’s leadership to secure additional investments and job creation within Canada. The call to action comes as part of Ottawa’s broader strategy to leverage defence procurement as a countermeasure to U.S. trade sanctions, particularly those impacting Canada’s auto sector.
The federal government is positioning the military procurement drive as a dual opportunity to modernize Canada’s defence capabilities and stabilize domestic manufacturing sectors vulnerable to tariff disruptions. A spokesperson from Minister Joly’s office said, “This isn’t just about defence equipment — it’s about strengthening Canadian innovation and preserving good-paying jobs across the country.”
In response, GM Defense Canada President Steve duMont expressed the company’s commitment to Canadian operations. “We understand that the Canadian military procurement process requires significant investments in the country, and we’re confident GM’s current and future investments will help us meet our obligations,” said duMont. “We have a seamless partnership with GM Canada and are well positioned to deliver solutions tailored to the unique needs of the Canadian Armed Forces.”
GM Defense, established internationally in 2022 and expanded into Canada in 2023, continues to showcase its military-focused vehicle lineup, including the Light Utility Vehicle and variants of the Infantry Squad Vehicle, at major defence and security industry exhibitions.
As Ottawa signals an unprecedented increase in defence spending, the message to industry partners is clear: invest in Canada, build in Canada, and support Canadian jobs.