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While automakers and suppliers in Canada are in limbo wringing their hands as the clock ticks down the next U.S. tariff deadline in March, Linamar Corp. is charging forward.
Canada’s second largest automotive supplier, next to Magna International, will invest about $1.1 billion in a series of electric-vehicle technology projects at plants across Southwestern Ontario as the supplier works to balance its existing internal-combustion-engine business with its expanding EV product portfolio.
Company officials, alongside federal and provincial industry ministry leaders, announced the spending plan, backed up by government support, at an event in Guelph Jan. 28.
The investment is expected to create about 2,000 jobs, as well as 300 co-op positions across the province.
Linamar Executive Chair Linda Hasenfratz said the investments in new manufacturing capabilities and capacity will allow the company to maintain its leadership position for “every type of vehicle propulsion.”
“This partnership helps us realize that potential,” she said in a release.
Confidence in Ontario
“The participation of both levels of government in this program is a great indication of their commitment to the Canadian automotive manufacturing sector and helps ensure Canada and Ontario can successfully position itself as an industrial leader for the production of highly advanced automobiles within a rapidly changing global automotive market,” Hasenfratz said.
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The supplier will spend about $800 million on projects in Guelph, Salford, Welland and Windsor. They include expanded production of e-axles and lightweight parts, as well as development work on new semiconductor packaging methods for EV batteries and hydrogen storage tanks for fuel-cell vehicles.
Ottawa will back the investment with $169.4 million from the Strategic Innovation Fund, while Invest Ontario will supply an additional $100 million from the province.
Ontario Premier Doug Ford said the spending demonstrates Linamar’s “ongoing success” in the province.
“At a time when we face a new administration in the White House and the potential threat of tariffs on Canadian goods, this investment will create good-paying jobs, strengthen our homegrown electric-vehicle supply chain and accelerate the production of Ontario-made EVs,” he said in a release.
‘Cements’ EV leadership
François-Philippe Champagne, Canada’s minister of innovation, science and industry, said the spending is a win for Canadian jobs and “cements” the country’s position as a leader in the EV supply chain.