This week's automotive industry updates highlight GM's $4.5 billion investment in supplier financing to prevent parts shortages, Stellantis' consideration of closing its Brampton, Ontario assembly plant, Canadian Tire's continued automotive sales growth, rising parts revenue per vehicle for manufacturers, and increased investment in dealership real estate.
- GM Parts Protection: General Motors arranged up to US$4.5 billion in financing through Procura Auto Parts to help suppliers purchase critical inventory and protect against supply chain disruptions from weather, natural disasters, cyberattacks, and demand spikes.
- Brampton Plant Crisis: Stellantis is seriously considering closing and selling its Brampton, Ontario assembly plant after more than two years without production, with over 2,200 workers remaining laid off since production stopped in December 2023.
- Automotive Sales Growth: Canadian Tire reported its 24th consecutive quarter of automotive sales growth, with comparable sales increasing 0.7% across the corporation while retail sales rose 4.5% to $5.39 billion.
- Revenue Per Vehicle Surge: Linamar's North American automotive sales per vehicle jumped 24.6% from $292.01 to $363.96, driven by acquisitions, new program launches, and higher volumes despite flat vehicle production.
- Real Estate Expansion: Automotive Properties REIT reported rental revenue of $30.2 million, up 22.8% from acquisitions and contractual increases, with a portfolio of 95 income-producing properties covering 3.5 million square feet.
In this week’s Tuesday Ticker, parts-supply protection gets a multibillion-dollar boost, the future of an Ontario assembly plant grows more uncertain, automotive sales continue to outperform broader retail results, parts revenue per vehicle climbs sharply and dealership real estate continues to attract investment.
Parts protection
A major automaker is putting billions of dollars behind efforts to prevent another serious parts shortage.
General Motors executives have arranged up to US$4.5 billion in financing to help selected suppliers purchase and hold critical inventory before the automaker needs it. GM executives signed the agreement with Procura Auto Parts on Aug. 7 and disclosed it in an Aug. 11 regulatory filing.
Under the arrangement, Procura can advance money to selected suppliers to fund inventory purchases. GM will then pay Procura after the corresponding parts are used in vehicle production.
Executives said the program is intended to protect production from disruptions caused by extreme weather, natural disasters, cyberattacks and unexpected demand. It also gives suppliers access to funding before GM would normally have to pay for the parts.
“Our industry has experienced significant supply chain disruptions in the past for various reasons, and it’s safe to assume they will happen in the future,” GM officials said in a statement. “This program will help ensure that we are prepared for multiple scenarios.”
The news failed to produce a lasting lift in GM shares, which fell 2.9% to US$86.76 on Aug. 12 after rising the previous session.
Brampton on the brink
One of Canada’s largest auto plants could be heading toward closure and sale after more than two years without production.
Stellantis executives are seriously considering closing and selling the Brampton, Ont., assembly plant, according to Unifor officials. Union representatives said Stellantis executives told them Aug. 12 that representatives planned to begin discussions with another company about a possible sale.
Production stopped at the plant in December 2023 so the facility could be retooled for a new vehicle program. Stellantis executives paused that work in February 2025 and later abandoned plans to build the next-generation Jeep Compass in Brampton. Planned Compass production was instead moved to Belvidere, Ill.
More than 2,200 workers remain laid off.
“This is a dire development for our members and for Canada’s auto industry,” Unifor national president Lana Payne said.
Stellantis executives have not issued a formal closure notice. The current collective agreement with Unifor expires Sept. 20.
Investor reaction was muted, with Stellantis shares slipping 0.2% to US$5.36 on Aug. 14.
Automotive streak
One of the best-known brands in Canada is reporting six straight years of automotive sales growth.
Canadian Tire executives reported a 24th consecutive quarter of automotive sales growth in the second quarter, even as comparable sales at Canadian Tire Retail fell 0.8%.
Across Canadian Tire Corporation, comparable sales increased 0.7%. Retail sales rose 4.5% to $5.39 billion, while normalized diluted earnings per share increased 10.4% to $3.94.
Executives also continued expanding the PartSource automotive parts network during the first half of 2026, opening new locations in Ontario and British Columbia.
President and CEO Greg Hicks said customers remained focused on value during the quarter. He said executives responded by lowering prices in selected areas while adjusting operations to difficult weather conditions.
Investors responded cautiously to the results, with Canadian Tire Class A shares falling 1.3% to $200.30 on Aug. 13.
More per vehicle
A major Canadian parts manufacturer is generating substantially more automotive revenue from each vehicle produced in North America.
Linamar executives reported $1.48 billion in North American automotive sales in the second quarter, up 24.4% from a year earlier. North American vehicle production fell 0.2% during the same period.
That pushed Linamar’s automotive sales per North American vehicle from $292.01 to $363.96, an increase of 24.6%.
Executives attributed the increase mainly to acquisitions, new program launches and higher volumes on major existing programs. Those gains were partly offset by programs that reached the end of production.
Linamar’s broader Mobility segment generated record quarterly sales of $2.36 billion, up 20.5% from a year earlier. Normalized operating earnings increased 28.6% to $194 million.
Linamar CEO Linda Hasenfratz has identified growth in the amount of business generated from each vehicle program as one part of the manufacturer’s broader expansion strategy.
The strong operating numbers failed to impress investors immediately, with Linamar shares falling 2.8% to $104.03 on Aug. 13.
Property push
A Canadian owner of dealership and automotive service properties is reporting strong revenue growth after expanding its portfolio.
Executives at Automotive Properties REIT reported second-quarter rental revenue of $30.2 million, up 22.8% from a year earlier. Adjusted funds from operations increased 18.6% to $14.9 million.
Most of the increase came from properties acquired during and after the second quarter of 2025, along with contractual rent increases. Cash net operating income from properties owned during both periods increased 2.2% to $21.1 million.
CEO Milton Lamb said acquisitions completed during 2025 and 2026 were the main reason for the increase in quarterly results.
Executives have continued buying automotive real estate this year. In April, they purchased two California dealership properties for a combined US$30.15 million and leased them to Penske Automotive Group.
Trustees also approved a 2% increase in the annual distribution to $0.839 per unit. In a separate transaction, executives agreed to sell a 50% interest in a Vaughan, Ont., dealership property to a member of the Dilawri Group for $16 million. Automotive Properties will retain the remaining 50% interest.
The portfolio included 95 income-producing properties covering about 3.5 million square feet at the end of the quarter.
The news failed to move investors significantly, with units slipping 0.4% to $12.19 on Aug. 14.
