The City of Oshawa has approved a new procurement policy designed to support the local automotive industry by prioritizing Canadian-made vehicles when purchasing new fleet vehicles.
Under the new policy, city staff responsible for vehicle procurement will be required to give first priority to products manufactured by General Motors Canada when sourcing vehicles for municipal use. If GM vehicles do not meet the city’s operational requirements, staff will then be directed to consider other Canadian manufacturers before exploring international suppliers.
City officials say the policy is intended to support Oshawa’s longstanding automotive sector and help strengthen the local economy.
Ward 1 Councillor John Neal, who introduced the idea, said municipal governments should lead by example when encouraging residents and businesses to buy Canadian-made products.
“We have to get down to that policy of buying Canadian, and we really have to be advocates of it in local government,” Neal said during council discussions.
“If you’re going to tell people to buy Canadian, you have to make sure that politicians at the municipal level are actually enacting that.”
The decision comes at a time when many organizations across Canada are adopting “buy Canadian” procurement policies, particularly in response to trade tensions between Canada and the United States.
In recent years, both federal and provincial governments have introduced policies that prioritize Canadian suppliers when awarding large public contracts. In Ontario, legislation passed in 2025 requires public institutions to prioritize Ontario-based suppliers first, followed by other Canadian companies, when making procurement decisions.
Neal said Oshawa historically maintained stronger relationships with local automotive companies and dealerships when acquiring vehicles for municipal use. Over time, however, he believes those connections weakened.
“We’ve strayed from that, for whatever reason,” Neal said. “We all know how this has come back to haunt us, not supporting our local industries.”
The policy is particularly meaningful in Oshawa, which has a deep historical connection to the General Motors manufacturing facility located in the city.
The GM plant has played a central role in Oshawa’s economy for decades, employing thousands of workers and contributing significantly to the region’s industrial identity.
However, the facility has experienced significant uncertainty in recent years.
In 2018, General Motors announced plans to scale back production at the Oshawa plant, raising concerns about the future of manufacturing jobs in the city. The company later reversed course in 2021, introducing new production lines and bringing jobs back to the facility.
More recently, however, the local automotive industry has again faced challenges. In 2025, the United States imposed a 25 percent tariff on Canadian-built vehicles, creating additional pressure on Ontario’s automotive manufacturing sector.
The Oshawa GM facility was impacted earlier this year when the company eliminated its night shift, resulting in hundreds of layoffs.
Supporters of the new procurement policy say prioritizing Canadian-made vehicles is one way the municipality can show support for local manufacturing jobs and the broader automotive sector.
Neal said municipal governments should do everything possible to help protect and support the industry.
“We should be doing everything we possibly can to help out the automotive industry,” he said.
City officials say the policy will guide future fleet purchases while still allowing staff to evaluate vehicle options based on operational needs and value for taxpayers.
