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Chevrolet and GMC plan full redesigns of Silverado and Sierra pickups for the 2027 model year.
Plug-in hybrid variants could join gasoline and EV offerings as GM expands powertrain diversity.
Redesign follows strong sales and added U.S. production capacity for full-size pickup models.
Chevrolet and GMC will redesign their light-duty full-size pickups, the Silverado and Sierra, in 2027, with General Motors evaluating plug-in hybrid variants for future production. Heavy-duty versions of both models are expected to follow in 2028.
The update is part of GM’s evolving product strategy, which recently completed a wave of crossover and SUV updates and added new electric vehicle offerings. Chevrolet and GMC have seen increased U.S. sales volume in 2025, including a record first half for GMC and Chevrolet’s strongest performance since 2019.
Strong demand for full-size pickups and large SUVs has prompted General Motors to plan additional manufacturing capacity in the U.S. GM confirmed it will add production of the Silverado and Sierra nameplates at its Orion Township, Michigan, plant in 2027. Relatedly, Chevrolet and GMC refreshed the Tahoe, Suburban, and Yukon SUVs in 2024. This should lead to complete redesigns, planned for 2029, with potential plug-in hybrid options, mirroring the pickups.
2025 Chevrolet Suburban | Credit: General Motors
The company has not announced timelines to phase out internal combustion engines, choosing instead to expand EV availability while retaining gasoline and potentially hybrid options. The plug-in hybrid strategy could help bridge the gap in consumer interest in electrification as demand for EVs moderates.
In addition to the Silverado and Sierra redesigns, electric variants of the pickups, the Silverado EV and Sierra EV, could receive updates around 2028. Both electric models have added new trims, including off-road and base-level configurations.
2026 GMC Sierra EV Elevation | Photo: GMC
Chevrolet and GMC have been expanding their product portfolios with redesigns and freshenings across several segments. Notable updates include the 2024 launches of the redesigned Equinox and Terrain compact crossovers and new generations of the Traverse and Acadia three-row models. The redesigned Bolt will enter production by the end of 2025 – spy shots can be found online.
Chevy’s entry-level Trax subcompact crossover, which debuted in 2023, remains a key volume model in 2025 in the U.S., ranking as the brand’s third-highest seller. Like the Trailblazer, it is built in South Korea and subject to U.S. import tariffs under current policy. In Canada, the Traverse has seen a 100% increase in sales in Q2 2025 versus Q2 2024.
GM has also extended the lifecycle of its gasoline-powered Express and Savana commercial vans through at least 2026. New electric commercial vans under the BrightDrop name were rebranded as Chevrolet models in 2024, although sales have remained underwhelming.
While Chevrolet has ended production of the Camaro, a new sporty sedan is being considered for 2028, although details remain limited. Based on the current state of EV adoption in the U.S. and sedans, it seems like this one won’t make the cut.
GM will build Silverado, Sierra, and Escalade at Orion Assembly in Michigan from 2027 onward.
Production pauses at GM’s Silao, Mexico truck plant extend across July and August.
Pickup trucks remain GM’s top U.S. sellers, driving manufacturing strategy shifts.
General Motors plans to build its Chevrolet Silverado, GMC Sierra and Cadillac Escalade models at Orion Assembly in Michigan starting in 2027. The production plant was previously intended for electric vehicles but is now earmarked for gasoline-powered models.
The automaker confirmed on July 15 that Orion Assembly, located about 55 kilometres north of Detroit, will produce the full-size pickups and SUVs. The decision came after GM’s recent announcement of a $4 billion investment to expand internal combustion vehicle manufacturing across three U.S. plants, including Orion, Fairfax Assembly in Kansas and Spring Hill Manufacturing in Tennessee.
In a statement, GM said the additional Michigan production would help meet ongoing demand for pickups and SUVs, while also reinforcing its manufacturing presence in the state and country.
At the same time, GM’s assembly complex in Silao, Mexico — the site building Silverado and Sierra trucks — is undergoing several weeks of downtime. The plant was paused for the first two weeks of July and is scheduled to halt operations again the weeks of August 4 and 11, according to two people familiar with the matter. GM described these shutdowns as part of routine efforts to optimize production, though multiple weeks of idling is uncommon for facilities assembling high-volume pickup models.
2025 GMC Sierra | Photo: GMC
Beyond Silao, GM manufactures Silverado and Sierra trucks in Fort Wayne, Indiana, Flint, Michigan and Ontario. The Escalade continues production in Arlington, Texas, alongside the Chevrolet Tahoe, Suburban and GMC Yukon.
Orion Assembly, which has been largely idle since late 2023, was initially expected to begin building electric Silverado and Sierra pickups. Those plans were delayed twice before GM redirected the site to bolster output of gasoline-powered trucks. The plant currently employs about 200 people producing battery modules for EVs built at GM’s Factory Zero in Detroit.
The Silverado and Sierra remain GM’s most popular vehicles in North America.
Ann Arbor, Michigan — Just over two years ago, Cadillac promised us an impressive range of electric vehicles. With last week’s launch of the Vistiq, we can say the loop is closed, at least for now.
General Motors’ luxury division now offers four fully electric SUVs (the others being the Lyriq, Optiq, and Escalade IQ), along with the high-end Celestiq sedan, which has just made its debut. While some automakers are approaching electrification more cautiously, Cadillac is going all-in.
2026 Cadillac Vistiq | Photo: Daniel Rufiange
It’s a make-or-break approach, as the saying goes. But one thing is certain: no matter what happens next, what Cadillac is delivering speaks volumes about quality, and the newcomer is no exception.
A Strong Signature
Visually, EVs often look different, especially up front, where the traditional grille, previously needed for engine cooling, is now unnecessary. As a result, automakers have been developing new front-end designs, with mixed results.
At Cadillac, the design approach has been successful across the EV lineup, and that hasn’t hurt the sales of existing models. In fact, the Lyriq accounted for 22% of Cadillac’s total sales in 2024.
2026 Cadillac Vistiq | Photo: Daniel Rufiange
The Vistiq adopts this design signature, along with styling cues from the Escalade IQ. Internally, Cadillac refers to it as the baby Escalade. Its dimensions are larger than the gas-powered XT6 it replaces—longer, taller, wider, and with a longer wheelbase.
The Vistiq comes standard with three rows of seating, which is a key selling point. It will appeal to buyers who need the space but don’t want to pay the premium for an Escalade IQ. That said, considering Cadillac’s clientele, the Lyriq may be enough for many. The Vistiq will have to work hard to carve out its own niche.
2026 Cadillac Vistiq | Photo: Daniel Rufiange
Trim Levels
The Vistiq will be available in four versions: Sport, Luxury, Premium Luxury, and Platinum. The first two trims start at $92,999, while the latter are priced at $110,999 and $117,499, respectively.
Subtle differences help distinguish them, starting with wheel size: 21-inch wheels on Sport and Luxury trims, and 22-inch wheels on Premium Luxury and Platinum. The latter can also be fitted with 23-inch wheels, though that might not be ideal given our crater-ridden Canadian roads.
A Peaceful Cabin
2026 Cadillac Vistiq | Photo: Daniel Rufiange
Once inside, you’re welcomed into an environment that radiates quality. The design team deserves credit for their excellent work. There are four seat colour options, various trim accents (including wood, carbon fibre, aluminum, and leather), and ambient lighting with up to 126 available colours. Everything is thoughtfully designed.
Yes, the front seats are heated and ventilated as standard. Yes, you can enjoy a massage while driving. Even entry-level models come well-equipped with heated second-row seats, five-zone climate control, a 23-speaker AKG audio system with Dolby Atmos, a two-section panoramic sunroof with a fixed third panel at the rear, and two wireless phone charging pads.
2026 Cadillac Vistiq | Photo: Daniel Rufiange
And yes, for those who care, the sound system is genuinely impressive. The listening experience is enhanced by the Vistiq’s quiet operation and excellent overall cabin insulation.
Premium Luxury and Platinum trims add even more, including air suspension, rear-wheel steering, augmented reality navigation, night vision, and Brembo brakes (Platinum only).
If you like to be pampered, the Vistiq will make you feel right at home.
And of course, there’s plenty of space with up to 2,272 litres of cargo volume behind the first row.
Super Cruise
2026 Cadillac Vistiq | Photo: Daniel Rufiange
Cadillac launched its semi-autonomous Super Cruise system nearly a decade ago. While other GM brands have since adopted it, Cadillac continues to offer the most advanced version.
In the Vistiq, one especially useful function is included, particularly for distracted drivers. When using built-in navigation, if you’re not in the correct lane when approaching an exit or junction, the vehicle will automatically perform the required lane changes to get you into the proper lane before it’s too late.
Interesting and impressive.
2026 Cadillac Vistiq | Photo: Daniel Rufiange
Another notable feature: Cadillac introduces augmented reality navigation in higher trims. Directions are projected onto the head-up display directly in your line of sight, showing turn-by-turn guidance right on the road ahead.
Powertrain and Range
The Vistiq uses the same technologies found in the Lyriq and other GM electric models. It features a 102-kWh battery powering two electric motors, producing a combined 615 horsepower and 650 lb-ft of torque.
2026 Cadillac Vistiq | Photo: Daniel Rufiange
With Velocity Max mode engaged, the Vistiq launches from 0 to 97 km/h in just 3.7 seconds, remarkable for a 6,326 lb SUV. The estimated range is 483 kilometres, though that will need to be confirmed in real-world conditions.
During our first drive, energy consumption ranged between 4.5 and 4.8 km per kWh, which is excellent. Conditions were ideal: 15 degrees Celsius and low-speed rural roads with a speed limit of under 90 km/h. Further testing is needed for a more realistic picture.
Charging-wise, base models feature an 11.5 kW onboard charger, while higher trims offer 19.2 kW capacity. Cadillac says you can recover 127 km of range in just 10 minutes—under ideal conditions—with a maximum charging capacity of 190 kW.
On the Road
2026 Cadillac Vistiq | Photo: Daniel Rufiange
From behind the wheel, the Vistiq delivers what you’d expect. There’s ample power, but what stands out is how smooth and refined it feels. In that regard, it’s spot on. Note that base models feature a sportier suspension setup, while the luxury variants benefit from air suspension for a smoother, more luxurious ride.
The overall experience is so seamless and quiet that you often forget you’re driving an EV.
It’s clear that the intended buyer won’t be disappointed. The real question is whether they’ll be more tempted by the Lyriq…
Conclusion
2026 Cadillac Vistiq | Photo: Daniel Rufiange
With the Vistiq, Cadillac is delivering a convincing three-row electric SUV. The challenge will be finding its audience, especially since this is new territory for the brand.
The silver lining? Seventy percent of Lyriq buyers are new to the Cadillac brand. There’s clearly potential to attract shoppers accustomed to other luxury nameplates.
This will be an interesting story to watch unfold.
GM to begin commercial LMR battery production in the U.S. by 2028.
New chemistry targets lower costs and longer range with up to 400 miles (644 km) per charge.
GM and LG aim to localize EV battery supply chain and reduce reliance on cobalt.
General Motors plans to introduce a new battery chemistry for its electric trucks and SUVs that will support driving ranges of up to 400 miles (644 km). The automaker is collaborating with LG Energy Solution to develop lithium manganese-rich (LMR) prismatic cells, with commercial production set to begin in the United States by 2028.
GM says the new cells are designed to be safer, denser, and less expensive than the high-nickel batteries currently used in its electric vehicles. The LMR chemistry replaces much of the cobalt content with manganese, which is more affordable and widely available.
The batteries will be produced at Ultium Cells, GM and LG’s joint venture. Preproduction is expected to begin in late 2027, and the final battery design will undergo validation at GM’s Battery Cell Development Center in Warren, Michigan, and LG’s battery development facility.
Unlike cylindrical cells, the prismatic format allows the batteries to be packed flat, improving space efficiency and simplifying manufacturing. General Motors has developed approximately 300 full-size LMR prototypes as part of a process that began in 2015 at its Wallace Battery Cell Innovation Center.
Current GM electric vehicles, such as the Chevrolet and Cadillac EVS, utilize high-nickel batteries that provide a range of approximately 300 to 320 miles (483 – 515 km). The new LMR cells are expected to extend that range to 400 miles while also contributing to lower vehicle costs.
Ford recently announced plans to adopt LMR batteries by 2030, giving GM a two-year head start if its 2028 target is met. Battery cost reductions are considered crucial to the broader adoption of electric vehicles. GM estimates that batteries account for 30 to 40% of an EV’s total cost and views LMR chemistry as a key factor in reducing that figure.
Global battery production is heavily concentrated in China, which accounts for over 70 % of worldwide lithium-ion battery output. GM executives say changing to manganese-rich batteries will also help localize the automaker’s supply chain and reduce exposure to geopolitical risks.
Despite their advantages, LMR batteries have historically faced challenges, including capacity loss and thermal degradation. GM engineers say they are working to address these risks and expect the new chemistry to perform on par with its first-generation high-nickel cells, even under extreme conditions.
Nearly 50,000 Canadian GM vehicles recalled for potential connecting rod and crankshaft defects.
Affected engines may lose propulsion or fail, increasing the risk of accidents and breakdowns.
Nearly 600,000 units have been recalled in the US for a grand total of over 720,000 worldwide.
General Motors is recalling 49,848 full-size pickups and SUVs in Canada due to a manufacturing defect in the 6.2L V8 L87 engine that can cause damage or failure.
The recall affects specific 2021–2024 models of the Chevrolet Silverado 1500, Tahoe, and Suburban; the GMC Sierra 1500, Yukon, and Yukon XL; and the Cadillac Escalade and Escalade ESV, all equipped with the 6.2L L87 engine. Vehicles powered by GM’s 5.3L V8, 2.7L turbo I4, or 3.0L diesel engines are not affected.
According to General Motors, the defect involves unspecified manufacturing issues with the engine’s connecting rods or crankshaft. These issues can cause propulsion loss and raise the risk of engine failure and accidents. The recall follows multiple lawsuits, investigations, and warranty replacements related to these engines.
GM will inspect affected vehicles to determine whether engine components meet specifications. Vehicles that pass inspection will receive a warranty extension and an oil and filter change using 0W-40 Mobil 1 Supercar oil, a higher-viscosity lubricant than the factory-specified 0W-20. The oil fill cap will also be changed to reflect the new specification. Vehicles that do not pass inspection will be repaired or receive an engine replacement.
In addition to the Canadian recall, GM has recalled approximately 336,756 SUVs and 260,874 pickups with the same engine in the United States.
The company has issued a stop-sale order for unsold affected vehicles in dealer inventory. These vehicles cannot be sold, demonstrated, or transferred until they pass inspection and receive the required service.
Transport Canada has assigned the recall number 2025-225. For more information, customers can contact GM customer service at 1-800-263-3777.
2026 Corvette models add three digital screens and revised console for enhanced driver interaction and usability.
All trims feature updated infotainment with Google built-in, expanded Performance App, and improved data recorder tools.
New asymmetrical interior design and four colour themes offer broader personalization across Stingray, E-Ray, Z06, and ZR1.
General Motors has revealed a fully redesigned cabin and upgraded digital cockpit for the 2026 Corvette lineup, including Stingray, E-Ray, Z06, and ZR1 variants. The changes for the mid-engine eighth-generation Corvette include expanded screens, reconfigured controls, and new customization options.
2026 Chevrolet Corvette | Photo: Chevrolet
The 2026 Chevrolet Corvette interior introduces a revised three-screen configuration to enhance driver engagement. The setup includes a 12.7-inch centre touchscreen, a 14-inch driver information centre, and a new 6.6-inch auxiliary display to the left of the steering wheel. Each screen offers configurable layouts and access to performance data. Select trims, including the ZR1, can be fitted with a carbon fibre cluster hood above the driver display to match other available carbon fibre elements.
All 2026 Corvettes feature a bespoke infotainment system built on Google’s in-vehicle platform, with voice-activated control over navigation, media, communication, and in-car features. OnStar-based services offer access to apps including Chrome, Prime Video, and GameSnacks, usable while parked.
2026 Chevrolet Corvette | Photo: Chevrolet
The new auxiliary touchscreen provides dedicated space for trip tracking, Performance Traction Management, and propulsion metrics. The digital displays’ tour, Sport, and Track themes have been modernized, with drivers able to select a preferred layout or allow the system to adjust according to drive mode.
The Corvette Performance App, now available across the full lineup, consolidates key vehicle data into a single interface. Features include:
Configurable acceleration timers
G-force readings with historical data
Tire pressure and temperature status
Engine oil, coolant, and transmission fluid temperatures
eAWD monitoring for E-Ray models, including front axle output and battery charge
The updated Performance Data Recorder features an enhanced user interface and larger screen integration. It provides real-time analytics, high-definition video recording, and playback tools, including speed trace visualization and performance tips based on driver behavior.
2026 Chevrolet Corvette | Photo: Chevrolet
The new PTM Pro mode is added to all Corvette variants, allowing for track-focused driving by disabling stability and traction controls while preserving ABS and, for E-Ray, key front axle controls.
The centre console has been reengineered for improved ergonomics, relocating the drive mode selector to align with the gear shifter. In its previous location, a new wireless phone charging pad is now housed under a covered console section. A larger volume knob with a lit base improves visibility.
HVAC controls have moved below the centre display, opening space between occupants and allowing for a newly integrated passenger grab handle. A USB-C port has been added to the passenger side.
2026 Chevrolet Corvette | Photo: Chevrolet
Corvette introduces its first asymmetrical interior layout in the 2026 model year. The new Adrenaline Red and Jet Black scheme visually separates the driver and passenger zones, and a mixed seating configuration allows customers to specify a race-inspired driver’s seat paired with a GT2 passenger seat.
Four additional interior themes debut across all models:
Sky Cool & Medium Ash Gray with Habanero accents
Santorini Blue
Very Dark Atmosphere (a chocolate brown tone with black and tan accents)
Ultimate Suede, featuring microfiber upholstery and colour-customizable stitching and seatbelts
The Ultimate Suede option brings suede microfiber to most interior surfaces, and customers may choose from accent colours such as Adrenaline Red, Santorini Blue, and Competition Yellow.
2026 Chevrolet Corvette | Photo: Chevrolet
The ZR1’s ZTK package introduces the largest braking system ever installed on a production Corvette, including 10-piston front calipers, 6-piston rear calipers, and carbon ceramic rotors.
A new electrochromic roof option allows users to adjust roof glass tint to one of three settings—low, medium, or full—via a button press. For the E-Ray model, the Charge+ function has been relocated to the steering wheel below the Z Mode button for quicker access.
Exterior options are updated with a new asymmetrical centre stripe (Edge Red/Carbon Flash), standard body colour rocker panels for E-Ray, and optional blue brake calipers for Z06 and E-Ray. Two new exterior paint colours—Roswell Green Metallic and Blade Silver Metallic—will be available across the lineup.
The Corvette continues to be assembled at General Motors’ Bowling Green facility in Kentucky, using domestic and globally sourced components. In Canada, the Corvette has led luxury sports car sales for over five consecutive years, according to Chevrolet.
2026 Chevrolet Corvette | Photo: Chevrolet2026 Chevrolet Corvette | Photo: Chevrolet2026 Chevrolet Corvette | Photo: Chevrolet
2026 OPTIQ-V may adopt a “detuned” Blazer EV SS powertrain, or not.
Part of Cadillac’s fifth-generation V-Series lineup, designed for dynamic electric performance.
Aligns with GM’s EV strategy by leveraging Ultium platform and cross-brand powertrain sharing.
Cadillac has confirmed that the OPTIQ electric SUV will receive its own V-Series variant in 2026, marking its latest move to take on all would-be competition in the performance EV space. The OPTIQ-V will be part of Cadillac’s fifth generation of V-Series vehicles and is being positioned as a high-performance compact luxury SUV.
2026 Cadillac 2026 OPTIQ-V | Photo: Cadillac
Although Cadillac has not released technical specifications, the OPTIQ-V could very well inherit the Ultium-based powertrain used in the Chevrolet Blazer EV SS, although with a slightly reduced output. That powertrain produces 615 horsepower and 650 lb-ft of torque, enabling a 0–100 km/h acceleration time of approximately 3.4 seconds using General Motors’ Wide Open Watts (WOW) mode. If these specifications are carried over, the OPTIQ-V would stand as one of the most powerful EVs in its class. Caddy’s done some crazy things over the last few years – here’s hoping they keep it up.
Cadillac stated the OPTIQ-V was engineered to emphasize precision handling, responsive steering, and dynamic suspension tuning. These performance characteristics are consistent with all models so far produced for the V-Series, which traditionally applies sport-focused modifications to Cadillac models.
The OPTIQ-V is expected to compete in the compact luxury EV market segment upon its Canadian release in 2026.
Buick reveals ELECTRA GS concept with a 5,300 mm body and Kinetic Sculpture design language.
Interior features include AR HUD, ultra-wide display, and materials like leather, metal, and woven fabric.
Concept highlights Chinese design influence as GM expands EV presence in global premium markets.
Buick has revealed the sublime ELECTRA GS concept vehicle, showcasing a new design direction and electric vehicle platform as part of its transition to new energy vehicles. Developed at the GM China Advanced Design Center, the concept introduces Buick’s “Kinetic Sculpture” design language, which combines sculptural form with technological integration.
The ELECTRA GS, inspired by the mythical centaur, combines physical dynamism with design intelligence. The concept car is 5,300 mm long and has a wheelbase of 3,200 mm. Its low profile, wide stance, and 23-inch wheels establish a commanding presence. The front end integrates hidden “Reverse Checkmark” lighting elements and a contoured shark-nose shape. At the rear, floating roof rails evolve into structural buttresses, merging with a panoramic glass roof and spoiler.
The interior features a flat floor made possible by the vehicle’s dedicated electric platform. Four individual seats are arranged in a cabin designed as a luxury sanctuary, using premium leather, metal, and woven materials. A driver-centric cockpit incorporates an augmented reality head-up display and streamlined controls. Passengers can access a 16.3-inch ultra-wide digital screen.
Designed by a new generation of stylists at GM’s Shanghai-based studio, the ELECTRA GS is a design statement that reflects Buick’s evolving global identity. The concept demonstrates the role of Chinese creativity in connecting with technologically engaged, culturally aware consumers worldwide.
Since entering the Chinese market in 1998 through the SAIC-GM joint venture, Buick has sold more than 10 million vehicles. The ELECTRA GS provides a conceptual preview of Buick’s approach to luxury electric mobility in both the Chinese and North American markets.
Buick’s three top-selling SUVs face tariffs of up to 47.5% on U.S. imports.
GM may halt imports of 450,000 vehicles from China and Korea due to rising costs.
Buick’s market gains in the U.S. risk reversal amid higher sticker prices and shrinking supply.
U.S. tariffs on vehicles imported from China and South Korea are expected to seriously undercut Buick’s recent sales growth, with its top-selling models now subject to new levies that could increase retail prices by thousands of dollars.
General Motors’ Buick division, which had recorded a 39% sales increase in the first quarter of 2025 in the U.S., is especially vulnerable due to its reliance on overseas manufacturing. The Envista and Encore GX are produced in South Korea, while the Envision SUV is assembled in China. According to a Barclays analysis, the South Korean imports now face a 27.5% tariff, while the Envision is subject to a combined 47.5% tariff due to overlapping trade penalties and import duties.
The price hikes threaten Buick’s upward trajectory in the U.S. market. The company has not issued a public comment on the potential impact, but industry analysts point to the affordability of Buick’s current lineup as a key factor behind its recent momentum.
Barclays warned in a client note on April 15 that the new tariffs could force General Motors to stop importing about 450,000 vehicles annually from China and South Korea. It also cut GM’s 2025 EBIT estimates by 40%, citing an estimated gross tariff impact of $9.5 billion. Ford Motor faces a projected 60% EBIT reduction and a $7 billion tariff cost, due in part to its China-made Lincoln Nautilus.
Industry-wide, the tariffs are expected to raise prices of affected models by 10–15% and could drive a 5% increase across the broader vehicle market, according to Cox Automotive. This may hit entry-level vehicles especially hard, including the Buick Envista and Chevrolet Trax, which are among the most affordable SUVs available.
Despite current challenges, Buick has seen growth in market share from 0.8% in 2022 to 1.6% in the first quarter of 2025. The refreshed Envision have driven much of that expansion. Dealers have reported strong demand and inventory levels remain healthy, with a 53-day supply on average, according to Edmunds.
However, Buick’s outlook is less stable globally. The brand’s sales in China—a major historical market—have declined by 65% since 2020 amid growing competition from domestic EV manufacturers. Sam Abuelsamid, vice president at Telemetry, said the combination of tariff pressures in the U.S. and market erosion in China poses a “risk to the survival of the brand.”
Though Buick sales were up by 44.1% in Q1 in Canada, a dramatic decline in imports and sales in the U.S. could impact availability here. Buick Canada’s 22,938 sales for all of 2024 pale compared to Buick USA’s 61,822 units delivered in Q1 alone this year. Importing a fraction of the planned Envista, Encore GX, and Envision may prove too costly for the Canadian market alone.
Ottawa exempts automakers from tariffs if Canadian production levels are maintained or increased.
U.S. tariffs prompt Canadian countermeasures: CUSMA vehicle imports partially excluded from duties.
Federal relief includes a six-month tariff holiday and loan support for affected Canadian companies.
The federal government announced April 15 that automakers that continue producing vehicles in Canada will receive an exemption from federal countermeasure tariffs. This is part of its response to new U.S. import duties on automobiles.
Finance Minister François-Philippe Champagne said companies can import a limited number of U.S.-built vehicles without paying Canadian retaliatory tariffs, provided the vehicles meet Canada-U.S.-Mexico Agreement (CUSMA) standards. The exemption applies only to automakers that maintain or increase Canadian production and investment levels.
The federal government introduced the measure in response to U.S. President Donald Trump’s decision earlier this month to impose a 25 % tariff on all imported vehicles. Trump included a partial exemption under CUSMA for vehicles assembled within North America. Ottawa responded with similar tariffs targeting U.S.-assembled vehicles destined for the Canadian market.
Under the new Canadian policy, automakers that scaled back production in Canada could see reduced tariff-free import allowances. In addition, Champagne announced a six-month tariff holiday for goods imported from the U.S. and used in domestic manufacturing, health care, and public safety sectors.
Prime Minister Mark Carney addressed the issue during a campaign stop in Quebec, calling the North American auto sector one of the most integrated industrial systems globally. “President Trump’s tariffs are an attempt in some degree to pull apart that integration and the benefits that come from that integration,” Carney said.
Carney also indicated that tariffs on U.S. auto parts, scheduled to take effect by May 3, may be reconsidered. He said he has been discussing with senior executives from Canadian and international automakers.
Automakers, including Ford, General Motors, and Stellantis, have urged the Trump administration to reconsider the duties. Industry analysts say they are likely to increase costs and disrupt cross-border supply chains. On April 14, Trump suggested that a delay or additional exemptions may be forthcoming.
To support Canadian businesses affected by the dispute, Ottawa announced a range of relief measures, including a temporary tariff exemption for certain U.S. imports and an expanded large enterprise tariff loan facility now accepting applications.
