TORONTO — The Ontario government says it is working with the federal government to increase Canadian content in 55 new subway trains for Toronto’s Line 2 to 55% part of a broader effort to strengthen domestic manufacturing and protect the province’s economic security.The increase represents a nearly 30% rise from the original level of Canadian content in the subway cars. According to the province, the move is expected to support more than 900 Canadian jobs and ensure provincial spending benefits Ontario-based companies, particularly in sectors affected by tariffs such as steel and aluminum.Ontario Transportation Minister Prabmeet Sarkaria said the decision aligns with the government’s goal of supporting workers and reinforcing the province’s manufacturing capacity.“Today’s announcement delivers on our government’s commitment to protect Ontario, both by ensuring Ontario tax dollars support Ontario workers and by strengthening and supporting the province’s manufacturing sector,” Sarkaria said in a statement. He added that manufacturing at Alstom’s Ontario facilities will help maintain skilled jobs and domestic production capacity..In November 2023, Ontario committed more than $758 million toward the purchase of new Line 2 trains, contingent on matching federal funding. The federal government matched the investment in November 2024. With the higher Canadian content requirement, Ontario’s contribution has increased to nearly $1 billion, an amount that will also be matched by Ottawa.Federal Housing and Infrastructure Minister Gregor Robertson said the project reflects a “buy Canadian” approach to public infrastructure spending.“By being our own best customer, we are ensuring that Canadians receive the maximum benefit from every tax dollar spent,” Robertson said, adding that the investment will support jobs and economic activity while delivering updated transit vehicles for Toronto..The province estimates the project will support 946 jobs across Canada, including 285 at Alstom’s Ontario facilities. Of those, 240 positions are based in Thunder Bay, 30 in Kingston and 15 in Toronto. The existing Line 2 trains are about 30 years old and nearing the end of their expected service life, with officials warning that continued operation would increase maintenance and safety costs.Toronto Mayor Olivia Chow welcomed the funding, saying the new trains will improve service for riders.“These new trains mean shorter waits, more reliable trips, and better connections across the city,” Chow said.Line 2 runs 26 kilometres from Etobicoke to Scarborough. The new high-capacity trains are designed to carry up to 1,100 passengers each. Daily ridership on the line is projected to reach 661,000 by 2041, according to provincial estimates.Ontario Economic Development Minister Vic Fedeli said prioritizing Canadian-made content helps strengthen supply chains and industrial capacity amid global economic uncertainty.The investment also aligns with Ontario’s Buy Ontario Act, which aims to maximize domestic content in publicly funded projects. The province noted it has recently invested in refurbishing GO Transit rail cars at facilities in Thunder Bay and North Bay, and is pursuing additional rail and transit expansions as part of a broader $70-billion transit program across Ontario.
