Could Canada Make Cars, Again?
Many years ago, when I was a child, I asked my Uncle "Why don't people still make their own cars, as they did in the early days?" He explained about costs, parts, etc. Pretty much as this post does about the idea/ chance of a Canadian made car.
I can't remember hearing about Canadian car companies mentioned: Bricklin Canada Ltd. and Russell Motor Car Co. But, I haven't been interested in vehicles other than some history and what cars could be like in the future, especially self driving cars and cars which don't use fossil fuels.
Also, those small cars (sometimes labelled as personal transport, which only seem drivable in the summer here) made by unknown companies without a huge marketing budget. (I think people should be driving smaller cars instead of giant SUV's that take up an entire parking space and consume a lot fuel for a trip to the corner store with one person in the vehicle).
Could Canadian car makers start, or bring fresh life (and marketing), to a Canadian made small /micro car with fresh technology and specifications that work with our Canadian climate? An actual custom made car for Canadians.
That makes the idea far more interesting for me. Would you drive a micro car like the Isetta?
My sister wouldn't. She loves her SUV because its huge. She likes intimidating other drivers and she is a VERY aggressive driver. Far too much. I think this is why the huge truck/ cars have become popular. After learning to drive in my sister's huge tank of a car, my niece thinks driving a small car would be unsafe. But, what makes a small car less safe is the aggressive drivers on the roads. If huge cars were marketed as unpopular choices, a small Canadian made car could be more than just a niche vehicle.
From The Financial Post - Could a Canadian car company finally happen in 2026?
Canada’s history is littered with failed ideas for car companies — think Bricklin Canada Ltd. and Russell Motor Car Co. — but circumstances have made the idea of starting a Canadian automotive company worth considering once again, says a new report.
Intense competition, the need for billions of dollars in capital and the inherent complexity of designing a road-safe vehicle all create stumbling blocks for any new company looking to produce automobiles.
“It’s probably something that won’t happen,” said Brendan Sweeney, managing director of the Trillium Network, a nonprofit at Western University in London, Ont., and co-author of the report, In Shifting Gears: The Potential for a Canadian Car Company.
The report said the Canadian auto sector is facing a turning point, in part because U.S. automakers’ domination of the sector has been slowly eroding for two decades, long before Trump enacted his tariffs.
In 2005, U.S.-headquartered automakers owned assembly plants that accounted for 74 per cent of all vehicles built in Canada. Today, they account for less than half, while Japanese-based automakers Toyota Motor Corp. and Honda Motor Co. Ltd. own plants that account for the majority of vehicles produced.
On the sales side, Canada imports roughly 90 per cent of the vehicles its residents purchase in any given year. U.S.-built vehicles no longer dominate there, either.
Sweeney said "Canadians buy around 1.6 million to 1.9 million vehicles every year, making it a large marketplace by global standards".
“The Canadian market could absorb enough cars to help a (homegrown) company get started,” he said. “But then we’d also have to find other markets.”
The traditional auto production sector includes five foreign automakers that produce around 1.3 million to 1.5 million vehicles every year, but there are also many Canadian-owned parts companies and companies that make buses, armoured trucks, ambulances and other specialized or niche vehicles.
In the Waterloo, Ont., region, where many companies work with auto-sector players specializing in artificial intelligence and software. Other companies that develop, build and operate nuclear power generating stations might lend technological expertise or capital allocation expertise to a fledgling company, the report said.
But building a Canadian car company is such a massive undertaking that it would likely require some partnership among a series of companies, each bringing a different expertise, the report said.
The authors said such a company could even link up with a well-known Canadian retailer, specifically suggesting Canadian Tire Corp. Ltd.
I also found this from TO Times - Micro Cars Are Coming to the 2026 Canadian International AutoShow
Some very rare and extremely small collectible vehicles will be prominently on display at the Canadian International AutoShow taking place from February 13th to 22nd at the Metro Toronto Convention Centre. Due to their rarity, many showgoers may never have heard of this unique type of vehicle, known as a Micro Car.
Micro cars, built largely between 1945 and 1970, were ultra-compact vehicles defined by tiny engines (usually under 700 cc), lightweight construction, short overall length, and often quirky features such as three wheels, one- or two-cylinder two-stroke motors, chain-drive systems, and unconventional doors like the BMW Isetta’s famous front-entry single door.
Born out of post-war necessity for basic transportation, companies such as Messerschmitt, BMW, Heinkel, and Zündapp shifted from wartime production to small personal vehicles as Europe rebuilt and mobility demand grew. With fuel rationing, limited resources, narrow streets, and scarce private parking, small, efficient, and affordable cars quickly became highly desirable in post-war Europe.
Models like the Autobianchi, Berkeley, BMW Isetta, Fiat 500, Daihatsu Midget, Heinkel Kabine, Vespa 400, Subaru 360, Bond Bug, Citroën 2CV, Peel P50, Honda Z600, Messerschmitt, and Goggomobil defined the micro car boom of the 1950s and ’60s. While they remained popular in Europe for years, these small cars rapidly faded from the North American market as tastes shifted toward larger vehicles and the emerging muscle-car era.