Oshawa aiming to expand its auto industry into defence amid General Motors layoffs

Oshawa’s General Motors plant was once one of the largest in the world and one of the city’s largest employers. But this year alone, 500 workers were laid off translating to approximately 1,200 layoffs across feeder plants for the industry.

Civic leaders are now working to drive the city’s economy in a different direction.

“At one time, about 87 percent of our economy was associated with the auto industry and transportation. It’s about three per cent [now],” said Oshawa Mayor Dan Carter.

A startling figure for the city that was once hailed as GTA’s auto town and one that has grappled with unemployment in recent years.

Last month, Oshawa reported a jobless rate of 7.9 per cent versus the national rate of 6.7 per cent.

Carter is aiming to change that.

“The automobile business is different than it was even 30 years ago. It is a lot, they’re a technical company now. And so a lot of people don’t understand that,” shared Carter.

While traditional automotive manufacturing is increasingly becoming a smaller and smaller part of the Oshawa economy, the city and Ontario Technology University are banking on new iterations of advanced manufacturing to really help drive the local economy, including developments in electric vehicles (EV)s, autonomous and even defence.

The university, home to the Automotive Centre of Excellence (ACE), is a big part of that change.

“One of the major pivots that Ontario Tech made was very early on, moving into the electric vehicle and autonomous vehicle space, as opposed to the kind of traditional automotive that Oshawa was built on,” said Les Jacobs, Vice-President of Research and Innovation.

It’s where the first all Canadian-designed, engineered and made vehicle, Project Arrow, was built in 2023.

Project Arrow’s successors– Borealis and Vector– were manufactured at Ontario Tech last year, spearheaded by the Automotive Parts Manufacturers’ Association and collaborations with dozens of manufacturers, suppliers and other academic institutions.

Jacobs is hoping the centre can play a pivotol part in helping Oshawa expand from vehicles for roadways to those for conflict zones.

“Positioning of Oshawa today is around creating a national defence corridor that really highlights innovation, is a beacon for Canadian companies, for startups, and for international companies that are coming to Canada to take advantage of the huge investment that we’re undertaking.” said Jacobs.

The ACE Climatic Wind Tunnel, which puts vehicles to the test of extreme temperatures, is ideal for testing armoured vehicles against the elements, particularly in the far north. It’s already used by major car brands globally, but now it could be used to help build Canada’s defence.

“We are a NATO-DIANA (Defence Innovation Accelerator for the North Atlantic) test facility, a unique lot for NATO members. There’s nothing quite like it as a designation in Canada, and … we have companies that are trying to sell to NATO countries in general, they are coming to test the vehicles here,” said Jacbs.

There is also hope that GM will pivot into defence manufacturing. Two years ago, GM Defence Canada was awarded a nearly $40 million contract by the Canadian Army to build 90 tactical vehicles. They were built in the U.S., but Carter wants to see future orders built here.

“Think about where we are today in regards to defence spending and where Canada is being demanded to be able to spend five per cent. And I continue to look at our historical contribution in the 1940s here in Oshawa about producing vehicles for our war efforts. We can do that again. We can create those opportunities,” said Carter.

However, GM has been non-committal. In a statement, Manager of GM Defence Geoff Johnstone said, “GM Defense Canada is actively pursuing Canadian defense procurement opportunities, including the Government’s planned Light Utility Vehicle program, where the heavy-duty Chevrolet Silverado platform built at Oshawa Assembly could potentially support. No decisions or agreements have been made.”

But with GM’s CTC McLaughlin Test Track, the research and cybersecurity expertise at Ontario Tech and the advances in AI technology being made at the university, Carter knows he has to seize the moment to help his community make a comeback.

“If it’s not in the automobile business, I better find other avenues and I better discover new avenues of opportunity for our city. I never want to dismiss the auto industry because it plays such an important part, not only in the DNA of our community,” said Carter.

“And I continue to look at our historical contribution in the 1940s here in Oshawa about producing. Vehicles for our war efforts. We can do that again. We can create those opportunities … Oshawa is ready to be able to meet that need. And our workers are trained and able to meet the challenges.”

Oshawa’s General Motors plant was once one of the largest in the world and one of the city’s largest employers. But this year alone, 500 workers were laid off translating to approximately 1,200 layoffs across feeder plants for the industry. Civic leaders are now working to drive the city’s economy in a different direction. “At  Uncategorized 

Oshawa’s General Motors plant was once one of the largest in the world and one of the city’s largest employers. But this year alone, 500 workers were laid off translating to approximately 1,200 layoffs across feeder plants for the industry.

Civic leaders are now working to drive the city’s economy in a different direction.

“At one time, about 87 percent of our economy was associated with the auto industry and transportation. It’s about three per cent [now],” said Oshawa Mayor Dan Carter.

A startling figure for the city that was once hailed as GTA’s auto town and one that has grappled with unemployment in recent years.

Last month, Oshawa reported a jobless rate of 7.9 per cent versus the national rate of 6.7 per cent.

Carter is aiming to change that.

“The automobile business is different than it was even 30 years ago. It is a lot, they’re a technical company now. And so a lot of people don’t understand that,” shared Carter.

While traditional automotive manufacturing is increasingly becoming a smaller and smaller part of the Oshawa economy, the city and Ontario Technology University are banking on new iterations of advanced manufacturing to really help drive the local economy, including developments in electric vehicles (EV)s, autonomous and even defence.

The university, home to the Automotive Centre of Excellence (ACE), is a big part of that change.

“One of the major pivots that Ontario Tech made was very early on, moving into the electric vehicle and autonomous vehicle space, as opposed to the kind of traditional automotive that Oshawa was built on,” said Les Jacobs, Vice-President of Research and Innovation.

It’s where the first all Canadian-designed, engineered and made vehicle, Project Arrow, was built in 2023.

Project Arrow’s successors– Borealis and Vector– were manufactured at Ontario Tech last year, spearheaded by the Automotive Parts Manufacturers’ Association and collaborations with dozens of manufacturers, suppliers and other academic institutions.

Jacobs is hoping the centre can play a pivotol part in helping Oshawa expand from vehicles for roadways to those for conflict zones.

“Positioning of Oshawa today is around creating a national defence corridor that really highlights innovation, is a beacon for Canadian companies, for startups, and for international companies that are coming to Canada to take advantage of the huge investment that we’re undertaking.” said Jacobs.

The ACE Climatic Wind Tunnel, which puts vehicles to the test of extreme temperatures, is ideal for testing armoured vehicles against the elements, particularly in the far north. It’s already used by major car brands globally, but now it could be used to help build Canada’s defence.

“We are a NATO-DIANA (Defence Innovation Accelerator for the North Atlantic) test facility, a unique lot for NATO members. There’s nothing quite like it as a designation in Canada, and … we have companies that are trying to sell to NATO countries in general, they are coming to test the vehicles here,” said Jacbs.

There is also hope that GM will pivot into defence manufacturing. Two years ago, GM Defence Canada was awarded a nearly $40 million contract by the Canadian Army to build 90 tactical vehicles. They were built in the U.S., but Carter wants to see future orders built here.

“Think about where we are today in regards to defence spending and where Canada is being demanded to be able to spend five per cent. And I continue to look at our historical contribution in the 1940s here in Oshawa about producing vehicles for our war efforts. We can do that again. We can create those opportunities,” said Carter.

However, GM has been non-committal. In a statement, Manager of GM Defence Geoff Johnstone said, “GM Defense Canada is actively pursuing Canadian defense procurement opportunities, including the Government’s planned Light Utility Vehicle program, where the heavy-duty Chevrolet Silverado platform built at Oshawa Assembly could potentially support. No decisions or agreements have been made.”

But with GM’s CTC McLaughlin Test Track, the research and cybersecurity expertise at Ontario Tech and the advances in AI technology being made at the university, Carter knows he has to seize the moment to help his community make a comeback.

“If it’s not in the automobile business, I better find other avenues and I better discover new avenues of opportunity for our city. I never want to dismiss the auto industry because it plays such an important part, not only in the DNA of our community,” said Carter.

“And I continue to look at our historical contribution in the 1940s here in Oshawa about producing. Vehicles for our war efforts. We can do that again. We can create those opportunities … Oshawa is ready to be able to meet that need. And our workers are trained and able to meet the challenges.”