Prevost, a Quebec-based coach manufacturer, secured $18.5 million in federal funding to support an $87.5 million development project that will protect 1,265 jobs and advance electrification technologies in response to U.S. tariffs on imported buses.
- Prevost received $18.5 million in federal funding representing approximately 21% of the $87.5 million project cost
- The investment protects 1,265 full-time equivalent jobs and provides 156 student co-op positions in Sainte-Claire, Quebec
- U.S. President Trump imposed a 10% tariff on imported buses effective November 1, 2025, with no exemptions for USMCA-compliant vehicles
- Prevost will develop new commuter motorcoaches and electrify the X-series model to meet zero-emission requirements
- The funding comes from Canada's Strategic Response Fund, part of Prime Minister Mark Carney's $3 billion automotive strategy
A Quebec coach manufacturing project has secured $18.5 million in federal support as Canadian bus builders face U.S. tariffs that apply even to vehicles meeting North American free trade rules.
Joël Lightbound, federal minister of government transformation, public works and procurement, announced the contribution Oct. 16 in Sainte-Claire, Que. The funding supports an $87.5 million development project at Prevost, with commitments to maintain 1,265 full-time equivalent jobs and provide 156 student co-op terms.
Founded in Sainte-Claire in 1924, Prevost manufactures intercity touring coaches, commuter coaches and vehicle shells for motorhomes and specialty conversions. The business is part of Volvo Group, the Swedish commercial vehicle and equipment manufacturer headquartered in Gothenburg.
Its Canadian manufacturing operations serve major American customers. In April, François Tremblay, president of Prevost and Volvo Group Canada, marked the planned delivery of the company’s 1,000th coach to New York’s Metropolitan Transportation Authority.
That relationship includes a contract announced in December 2023 covering up to 381 coaches, with a firm order for 250 scheduled for delivery in 2025 and 2026.
The trade barrier facing that business is specific. U.S. President Donald Trump imposed a 10% tariff on imported buses, including motorcoaches, effective Nov. 1, 2025. Unlike provisions covering some other vehicles, the bus tariff offers no exemption for compliance with the Canada–United States–Mexico Agreement or for the value of American components.
Trump introduced the measure under Section 232 of the Trade Expansion Act, citing national security. His stated objectives included increasing American production, investment and domestic market share in the truck and bus industries.
Lightbound linked the Canadian funding to protecting manufacturing jobs and strengthening the vehicle and battery supply chain.
“In practical terms, this means 1,265 jobs safeguarded today and for decades to come,” he said.
The One Prevost Platform project will support several propulsion technologies, including options producing no exhaust emissions. Tremblay said the work includes a new commuter motorcoach for public customers and electrification of the X-series model.
The contribution comes through the Strategic Response Fund, which supports industrial investment, research and modernization, including projects responding to tariff pressures. Prime Minister Mark Carney’s automotive strategy, unveiled Feb. 5, allocated up to $3 billion from the fund to automotive manufacturing and technologies.
Prevost’s American business continues to develop despite the trade dispute. On Oct. 6, Tremblay announced that government customers could order the H3-45 coach through the U.S. General Services Administration, the federal procurement agency, under a Mack Defense contract.
The Canadian contribution amounts to about 21% of the project’s stated cost. Lightbound identified retaining manufacturing in Sainte-Claire and developing Canadian intellectual property as objectives of the investment.
