Goodyear spending $575M to expand Ontario plant, produce EV tires

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Both Ontario’s premier and the prime minister were on hand to help announce a $575-million expansion to a Kingston-area tire plant, which promises to bring more than 1,000 new jobs to the area in three years.

Speaking from a Monday press conference at the Goodyear Canada plant in Napanee, about 200 km east of Toronto, Prime Minister Justin Trudeau described Canada’s automotive sector as a primary driver of Canada’s economy, something he was quick to take credit for.

“When we took over from the Conservative government, the sector was in decline,” Trudeau told reporters.

“Jobs were fleeting abroad, companies were choosing to invest elsewhere.”

Hard-hit during the COVID-10 pandemic and seeing contemporary struggles due to the ongoing affordability crisis, analysts suggest Canada’s automotive sector is on the rebound, with light vehicle sales in this country expected to grow by 9.6% in 2024.

Across North America, automotive production is expected to grow by 2.9% this year as supply chain shortfalls continue to recover.

Goodyear’s project will receive $44.3 million from the federal government via the Strategic Innovation Fund, and $20 million from the provincial government via Invest Ontario.

“Today’s announcement is another great example of all levels of government coming together to support local businesses and workers, and to help create better jobs and bigger paycheques,” Ontario Premier Doug Ford said.

The expansion will increase the plant’s production capacity, including its production of all-terrain and electric vehicle tires.