The government of Canada is making investments to maintain the Canadian vehicle industry in response to what it describes as challenges posed by U.S. trade actions on Canadian-made cars, trucks and buses. The government says that these investments are helping improve supply chain and manufacturing efficiencies and reduce the impact of U.S. tariffs.

An investment of C$18.5 million (US$13.2 million) is being made in Prevost, a division of Volvo Group Canada Inc., through the Strategic Response Fund, in support of an C$87.5 million (US$62.3 million) project to develop a new vehicle platform. The One Prevost Platform aims to support multiple propulsion technologies, including clean and zero-emission options.

“Canada is a leading vehicle-manufacturing nation, built on highly skilled workers, advanced innovation and strong global partnerships. This Strategic Response Fund investment in the One Prevost Platform will help secure long-term manufacturing in Quebec, deepen collaboration with international partners like Volvo Group and accelerate the development of next-generation technologies. It reinforces our commitment to protecting jobs, growing our vehicle manufacturing sector and positioning Canada as a global leader in zero-emission vehicles,” said Canada Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions Mélanie Joly

Through this project, the government of Canada says that Prevost aims to strengthen its supply chain and research and development capacity. The government further notes that this investment aligns with the objectives of Canada’s new auto strategy, which Prime Minister Mark Carney announced in February 2026.

“This investment by the government of Canada marks a decisive milestone for our organization,” said Prevost and Volvo Group Canada Inc. President François Tremblay. “It is a strong vote of confidence in our capacity to innovate and strengthen the future of Canada’s vehicle manufacturing sector. This crucial financial support will enable us to develop next-generation mobility solutions, support quality jobs, enhance our technological expertise and contribute actively to the economic prosperity of our community. This funding will support the development of a new commuter motorcoach for the public sector as well as the electrification of our X-series model. This partnership gives us the means to respond effectively to today’s challenges and sustainably improve citizens’ quality of life. We extend our sincere thanks for this essential support.”

The government of Canada says the investment will help secure the company’s long-term manufacturing presence in Sainte‑Claire, Quebec, while also enabling the development of new intellectual property, and, according to the government, positions Canada as a hub for advanced bus manufacturing.