Ontario auto manufacturers received $2.5 billion in government funding for electric vehicle production while Canadian autoworkers voted to authorize strike action at Stellantis, and major automotive suppliers reported mixed results with leadership changes at LKQ and a planned merger between AkzoNobel and Axalta.
- Ontario and federal governments committed $2.5 billion to auto manufacturing, with Ottawa contributing $1.5 billion and Ontario $1 billion over two years.
- 97.3% of Stellantis workers authorized strike action on October 19 following stalled contract negotiations since September.
- LKQ shares fell 22.47% after projecting a net loss of $16-32 million, primarily due to European operations disruptions and leadership transition to Salvatore Abbate.
- AkzoNobel and Axalta outlined divestiture plans for regulatory approval, with merger completion expected in early 2027.
- Genuine Parts Company's Canadian sales rose 9% with the Benson acquisition performing ahead of plan despite softer market conditions.
In this week’s Tuesday Ticker, governments commit billions to Ontario auto manufacturing, Canadian autoworkers authorize strike action and executives at major repair suppliers announce changes in leadership and ownership.
Ontario auto plants offered $2.5 billion
Ontario automotive manufacturers have been offered another $2.5 billion in government support for machinery, production lines and other capital projects.
Prime Minister Mark Carney and Premier Doug Ford announced the funding on Oct. 21. Ottawa will contribute up to $1.5 billion, with Ontario providing up to $1 billion over two years.
The funding forms part of a broader package covering automotive manufacturing, steel production and critical minerals. The automotive portion will support investment in connected and electric vehicle production.
Carney and Ford also announced a Canada–Ontario automotive task force. The measures address an industry facing U.S. tariffs while manufacturers invest in new vehicle technology.
“Tariffs make both our industries weaker and reduce choice for families,” Carney said in an Oct. 21 speech.
Stellantis workers back strike mandate
Canadian autoworkers have voted overwhelmingly to authorize strike action following stalled contract negotiations.
Unifor officials announced on Oct. 19 that 97.3% of participating members at Stellantis supported the mandate. Voting took place Oct. 17 and 18 after negotiations reached an impasse in September.
Stellantis manufactures Chrysler, Dodge, Jeep and Ram vehicles. Its Canadian operations form part of the North American manufacturing and parts network serving dealers and repair businesses.
The vote did not place workers in a legal strike position. At the time of the announcement, neither party had requested the “no board” report required as part of that process.
In an Oct. 22 bargaining update, Unifor national president Lana Payne and bargaining leaders James Stewart and Vito Beato said formal negotiations would restart after discussions between Stellantis representatives and federal officials concluded.
“Our members are united in their determination to reach a fair agreement with Stellantis that protects jobs for Canadian autoworkers,” Payne said in an Oct. 19 press release.
Stellantis shares closed Oct. 23 at US$4.06 on the New York Stock Exchange, down 4.92% for the session.
Benson acquisition boosts Canadian parts sales
Canadian sales at a major replacement-parts supplier have risen 9%, helped by an acquisition, while comparable sales increased 1%.
Will Stengel, chairman and chief executive officer of Genuine Parts Company, provided the Canadian figures during an Oct. 20 earnings call. He said the Benson acquisition was performing ahead of plan despite softer market conditions.
Atlanta-based Genuine Parts owns NAPA Auto Parts and distributes automotive and industrial replacement parts. Its Canadian operations supply parts to repair businesses and other customers.
Company-wide quarterly sales increased 4.2% to US$6.5 billion. Net income slipped to US$224 million from US$226 million.
The full-year adjusted earnings forecast was narrowed to US$7.50 to US$7.75 a share, reducing the previous upper limit of US$8. Stengel said the separation of the automotive and industrial businesses remained scheduled for the first quarter of 2027.
“Our third quarter performance demonstrates the strength of our market leading businesses and our teams’ continued focus on serving customers and executing our strategic priorities,” Stengel said in a press release.
Genuine Parts shares closed Oct. 23 at US$123.02 on the New York Stock Exchange, down 3.87% for the session.
LKQ warns of loss and replaces CEO
Shares in a major collision repair parts supplier have fallen more than 22% following a quarterly loss warning and leadership changes.
LKQ directors announced the changes on Oct. 23. The Antioch, Tenn.-based business supplies recycled original-equipment parts, aftermarket components, equipment and related services.
Preliminary quarterly revenue is US$3.32 billion, down from US$3.50 billion a year earlier. The projected net loss is US$16 million to US$32 million, including US$111 million in non-cash impairment charges.
The shortfall primarily involved European operations, including disruption from a business software rollout in Germany and lower sales volumes in the United Kingdom and Benelux. North American results were in line with expectations.
Justin Jude departed as president and CEO. Salvatore Abbate, a former chief executive of packaging distributor Veritiv, will take over Dec. 15. Board members John Mendel and Sue Gove will oversee operations during the transition. The full-year earnings forecast was withdrawn.
“LKQ’s performance, particularly in Europe, has fallen significantly short of the Board’s expectations, and the Board is taking decisive action to address it,” Mendel said in a press release.
LKQ shares closed Oct. 23 at US$17.42 on Nasdaq, down 22.47% for the session.
Paint suppliers outline merger divestitures
Two coatings businesses have been identified for sale as part of the proposed merger between AkzoNobel and Axalta.
Plans outlined during an Oct. 21 investor presentation cover AkzoNobel’s European vehicle refinish business and Axalta’s North American wood coatings business.
Final regulatory approval remains outstanding. The proposed sales are intended to secure clearance in the United States and European Union. Completion of the merger remains scheduled for early 2027.
Amsterdam-based AkzoNobel and Philadelphia-based Axalta manufacture automotive refinish coatings and other paints. The proposed combination would bring major bodyshop paint brands under one business, to be called Axanzo.
AkzoNobel’s quarterly revenue was €2.54 billion, broadly unchanged from a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization increased to €388 million from €385 million.
“Meanwhile, our merger with Axalta is firmly on track, with regulatory approvals advancing and closing expected in early 2027,” said Greg Poux-Guillaume, AkzoNobel chief executive officer, in a press release.
AkzoNobel shares closed Oct. 23 at €58.62 on Euronext Amsterdam, down €1.40, or 2.33%, from the previous close.
Gentex sales fall short of forecast
Quarterly sales at an automotive technology supplier have fallen approximately US$35 million below forecast following customer issues and delayed vehicle launches.
Gentex executives released the figures on Oct. 23. The Zeeland, Mich.-based manufacturer supplies automotive mirrors, electronic vision systems, dimmable glass and other technology.
Quarterly sales reached US$647.7 million, down from US$655.2 million a year earlier. Net income fell to US$90.6 million from US$101 million.
North American automotive revenue increased approximately 3%, despite a 5% decline in regional light vehicle production.
Steve Downing, president and CEO, attributed the regional performance to greater use of advanced features. Gentex supplies electronic and glass components used in modern vehicles.
“Our third quarter results demonstrate the resilience of our business and the continued benefits of our strategy to grow through technology, product mix, and diversification,” Downing said in a press release.
Gentex shares closed Oct. 23 at US$20.66 on Nasdaq, down 4.97% for the session.
