Chinese Cars Could Be Built Right On America's Doorstep
One of the world's largest and most diversified auto parts suppliers, Magna International, is open to the idea of manufacturing Chinese vehicles in Canada.
Magna's CEO Swamy Kotagiri told The Detroit News that the Canada-headquartered company is willing to team up with any automaker to assemble vehicles if that involves "really long term" plans.
Magna Is Already Assembling Chinese EVs In China And Europe
"We will be open, obviously, to any OEM, where they're looking at a value proposition that makes sense," Kotagiri told the paper. "But it has to be a really long term, and we will not do that on a one-program, one-customer basis."
The executive added that Magna International is hoping to benefit from Chinese automakers' growth as the supplier is following those brands' expansion into Latin America, Australia, Europe and other regions.
Magna has been doing business in China for almost two decades and its current footprint in the world's largest car market is about $5.5 billion, according to Kotagiri, who also said Magna's business in China "is better than the average Magna audience." Through the BAIC BluePark Magna Automobile Co. Ltd. joint venture in Zhejiang, Jiangsu province, Magna is building smart EVs for BAIC's Arcfox brand, including the T1 compact crossover pictured here.
"We are part of the ecosystem. When they go global, we believe we can help and be at the table as a national partner, like we are with all OEMs," Magna's head honcho noted.
Magna is already building two models for Chinese EV maker XPeng-the G6 and G9 electric SUVs-at its vehicle assembly plant in Graz, Austria for the European market. Kotagiri believes that the contract manufacturing deal in Europe may be seen "as a possible further opportunity for other parts of Magna."
These statements from Magna's CEO will definitely not go unnoticed in the United States, which has slammed Canada's reduction of import tariffs for Chinese EVs earlier this year, calling it a disaster.
Chinese EVs Assembled In Canada Would Escalate Trade Dispute With U.S. Further
The prospect of a Canadian company building Chinese EVs on America's doorstep will definitely not go down well in Washington, D.C., where it could be seen as an escalation in the current dispute between the U.S. and Canada on the renewal of the USMCA trade pact.
The Detroit News writes that Canadian companies such as Magna International have been expanding their ties with Chinese automakers as U.S. carmakers pull investments from Canada to onshore and save money on President Donald Trump's tariffs.
On June 10, Donald Trump said he might not renew the USMCA free trade deal he forged with Canada and Mexico in 2020, arguing that the U.S. does not need to buy any goods from its neighbors.
"We don't need anything that Canada has, we don't need anything that Mexico has, but they need everything that we have, and they have to treat us better," Trump said according to Financial Times.
The three countries have until July 1 to confirm whether they want to renew the agreement for 16 years, otherwise USMCA will fall into a period of annual reviews that could last a decade; that's because if no resolution is reached during the annual reviews, the pact is set to expire in 2036.
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This story was originally published June 13, 2026 at 7:15 AM.