Ontario, Canadian federal government make joint invest to increase Canadian content in new TTC Line 2 subway cars

The new trains will feature 55% Canadian content and will be built in Ontario, creating nearly 950 direct jobs.
Jan. 16, 2026
4 min read

The Ontario government, in partnership with the federal government of Canada, has worked to increase the Canadian content in the 55 new upcoming Alstom six-car Metropolis subway trains for Toronto Transit Commission’s (TTC) Line 2 to 55%. This marks a nearly 30% increase over the initial Canadian content projected to be in the subway cars and supports more than 900 Canadian jobs. The governments note the move works to ensure Ontario tax dollars support Ontario companies and industries in tariff-hit sectors such as steel and aluminum.

“Today’s announcement delivers on our government’s commitment to protect Ontario, both by ensuring Ontario tax dollars support Ontario workers and by strengthening and supporting the province’s manufacturing sector,” said Ontario Minister of Transportation Prabmeet Sarkaria. “The manufacturing of new subway trains at Alstom’s Ontario facilities will keep skilled workers on the job and ensure Ontario and Canada have the domestic manufacturing capacity that is critical to our economic prosperity and national security.”

The new subway cars are being funded through a joint effort between the Canadian federal government and the government of Ontario. The provincial government committed more than $758 million on the condition that the federal government match the investment, which it subsequently did so in November 2024. 

With the increase in Canadian content, there has been an increase in the total provincial investment to nearly $1 billion, which will be matched by the government of Canada to cover the additional associated costs. This project is part of the 10-year funding commitment under the Baseline stream of the Canada Public Transit Fund (CPTF). Beginning in April 2026, the TTC is set to receive up to $1.2 billion in CPTF funding over 10 years from 2026 to 2036 for this investment and other upcoming projects.

“Buying Canadian unlocks the full potential of our communities. By being our own best customer, we are ensuring that Canadians receive the maximum benefit from every tax dollar spent,” said Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada Gregor Robertson. “Our investment is helping to create good-paying jobs and encouraging economic activity across Canada, while delivering modernized public transit vehicles for our nation’s largest city.”

Funding for this project will support nearly 950 Canadian jobs, including 285 at Alstom’s Ontario facilities, with 240 in Thunder Bay, 30 in Kingston and 15 in Toronto.  The current 30-year-old Line 2 trains are nearing the end of their useful life, which could increase costs to maintain safety if they continue in operation. 

“Line 2 is getting a major boost for the people who ride it every day,” said Toronto Mayor Olivia Chow. “We applaud the provincial and federal governments for helping keep transit reliable for Torontonians. These new trains mean shorter waits, more reliable trips and better connections across the city. We are working to deliver a more affordable, safe and caring city for Torontonians.”

The new high-capacity trains for the 26-kilometer (16.2-mile) Line 2 subway will be able to carry up to 1,100 passengers each, supporting an increase of demand on the line, where daily ridership is expected to reach 661,000 by 2041, according to the provincial government. 

The new trains will also feature upgrades to the rider experience, including brighter, more spacious interiors with open gangways, active leveling technology for a smoother ride and amenities like wireless phone chargers. The initial order is for 70 train sets—55 for Line 2 and 15 more for additional extensions—with contract options for up to 150 additional train sets as needed. The new trains will use Canadian carbon steel and aluminum, reducing the need for international content and creating more than an estimated 1,700 indirect jobs on top of the more than 900 that will be directly created by the order.

“Ontario is a stable, reliable and competitive partner for manufacturing investment, equipped with both the skilled workforce and resources needed to advance projects of economic importance,” said Minister of Economic Development, Job Creation and Trade Vic Fedeli. “Prioritizing the use of Canadian-made content in Toronto’s subway trains is one more way our government is delivering on its commitment to protect Ontario workers, strengthening domestic supply chains and reinforcing the industrial capacity that underpins our provincial and national security interests.”

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