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ARTICLE · 12 FEBRUARY 2026

Canada's New Automotive Strategy

Borden Ladner Gervais LLP
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On February 5, 2026, the Government of Canada announced its automotive strategy designed to secure domestic manufacturing, accelerate electrification, and strengthen Canada's role in the North American and global...

CanadaTransport
John Hunter
John Hunter
Ariel Gorodensky
Ariel Gorodensky
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On February 5, 2026, the Government of Canada announced its automotive strategy designed to secure domestic manufacturing, accelerate electrification, and strengthen Canada's role in the North American and global auto supply chain. This announcement carries significant implications for OEMs, suppliers, battery manufacturers, investors, and those developing connected and autonomous technologies in Canada.

1. Significant federal investment to attract EV and advanced manufacturing projects

Canada will deploy up to $3B from the Strategic Response Fund and $100M from the Regional Tariff Response Initiative to support automotive manufacturing, including electric vehicle (EV) assembly, battery technology, automation, and advanced parts production. Investments are intended to benefit Canadian supplies and Canadian-made goods and services.

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