Closure of Canadian Manufacturing Plants
In 1982, Kenworth’s assembly facility in Burnaby, B.C., was permanently shut down. While the production of medium-duty trucks moved to Quebec, the assembly of Class 8 trucks shifted to the United States.
Shift in Truck Manufacturing
Nearby, the Western Star truck assembly plant continued operations but was later moved to Portland, Oregon, in 2002 after being acquired by Daimler Trucks North America.
Decline of Heavy Truck Production
By the end of 1991, another British Columbia-based heavy truck manufacturer, Pacific Trucks, had ceased operations.
Automotive Manufacturing Changes
During the 1980s, the Massey Ferguson and White Farm Equipment plants in southern Ontario closed following bankruptcies. Classic car enthusiasts may recall that prior to the 1965 Canada-U.S. Auto Pact, certain vehicle models were exclusively available in Canada due to import tariffs. Following this agreement, Canada’s automotive sector streamlined, resulting in fewer models manufactured domestically.
Impact of U.S. Tariffs on Canadian Markets
Most agricultural equipment crossed the Canada-U.S. border without tariffs, allowing major original equipment manufacturers to supply the Canadian market from U.S. plants. However, dependence on U.S. production has increased significantly. The escalation of U.S. tariffs under President Donald Trump has raised costs, with the Organization for Economic Co-operation and Development reporting an effective rate of 19.5 percent on imports by August.
Adjustments by Manufacturers
In response to these challenges, some agricultural and automotive manufacturers are altering their production and distribution strategies to mitigate tariff impacts. For example, Claas announced it would ship combines to Canada from Germany instead of Nebraska to avoid higher costs. Similarly, Agco has suspended shipments from overseas to North America due to tariff uncertainties while reassessing their delivery strategies.
Shifts in North American Production
Paccar recently revealed that Class 8 Peterbilt trucks for the Canadian market will now be produced in Sainte-Thérèse, Quebec, and Ford is investing approximately $3 billion to enhance Super Duty pickup assembly in Oakville, Ontario, along with engine production in Windsor. Experts predict a reconfiguration of supply chains as manufacturers increasingly prioritize local production abilities, which may bring both challenges and opportunities in the North American manufacturing landscape.
