A wave of billions is surging into Ontario’s auto industry, promising a future powered by electric vehicles, particularly in Southwestern Ontario. Yet, beneath the excitement, a tremor of anxiety runs through the region’s auto belt – a corridor stretching from Guelph to Windsor – as GM Canada suspends production at its Ingersoll plant, leaving 1,100 workers facing an uncertain future.
This isn’t the first time this region has braced for dramatic shifts. The story of its automotive heartland is etched with both triumph and hardship, a cycle of booms and busts that holds vital lessons for navigating the road ahead, especially as Canada confronts trade complexities and evolving demand for EVs.
St. Thomas stands poised for a remarkable rebirth. Two massive plants, representing over $10 billion in investment, are on the horizon, promising to reshape the city’s landscape and economy. PowerCo, a Volkswagen subsidiary, will anchor this transformation with a battery plant slated to open in 2027, creating approximately 3,000 jobs and supplying key VW facilities.
Adding to this momentum, Vianode, a Norwegian firm, is investing $3.2 billion in a synthetic graphite factory for EV batteries, potentially employing up to 1,000 people. These projects represent the largest capital influx into Southwestern Ontario’s auto sector since Toyota established its Woodstock plant in 2008 – a turning point that continues to resonate today.
Woodstock’s experience with Toyota demonstrates the ripple effect of major automotive investment. Beyond the 8,500 jobs directly created at Toyota and its Cambridge facilities, a network of supporting industries flourished. Economic development officer Brad Hammond notes the often-unseen benefits – increased hotel occupancy, catering services, and a boost to local businesses like hardware stores.
The impact extends beyond economics. Toyota’s philanthropic contributions to the United Way and donations of vehicles to emergency services have enriched the community. Mayor Jerry Acchione estimates that 80% of Woodstock’s industrial jobs are now linked to Japanese investment spurred by Toyota, and the plant generates approximately $7 million in annual property taxes.
Even two decades after its opening, Toyota continues to fuel Woodstock’s population growth. Acchione has already cautioned St. Thomas to prepare for similar, sustained expansion as the PowerCo plant nears completion, anticipating strains on municipal resources like power and water infrastructure.
However, the current optimism is tempered by the sting of past losses. The recent positive developments in St. Thomas stand in stark contrast to the pain felt when two auto plants closed within three years, eliminating roughly 2,800 jobs. The closure of the Sterling truck plant in 2009 resulted in 1,300 layoffs, followed by the end of Ford’s 44-year run in St. Thomas in 2011, impacting another 1,500 workers.
Former MP Joe Preston, who represented the region during those closures, recalls a slow, agonizing decline at the Ford plant. “It was like taking the Band-Aid off slowly,” he remembers, noting the widespread impact – roughly a third of the affected workforce lived in St. Thomas, a third in London, and the remainder within an hour’s drive.
Despite these setbacks, the region demonstrated resilience. Existing manufacturers like Magna’s Formet and Presstran, along with new ventures like Element5, a mass-timber producer, helped cushion the blow. Preston remains optimistic, predicting a strong recovery over the coming decades.
The most painful chapter unfolded in Chatham with the 2011 closure of the Navistar truck plant. A staggering 1,000 workers were initially laid off, only to have their hopes dashed two years later when production shifted to the United States and Mexico. Once a thriving hub employing 2,000 people in the 1990s, the plant’s demise triggered a population decline and economic hardship for Chatham-Kent.
From this experience emerged a crucial lesson: diversification. Stuart McFadden, the municipality’s director of economic development, emphasizes the importance of a broader economic base. “I would rather have 10 companies with 100 people than one with 1,000,” he explains, “because if one goes down, you still have 900 people working.”
The story of Southwestern Ontario’s auto industry is a powerful reminder that progress isn’t linear. It’s a narrative of adaptation, resilience, and the enduring need for strategic diversification – lessons that will be critical as the region navigates the evolving landscape of electric vehicle manufacturing and beyond.
