Canada Invests $4.7 Billion in Domestic Via Rail Fleet

Prime Minister Mark Carney announced a $4.7 billion investment to manufacture 313 new passenger cars for Via Rail Canada, marking the first time in 40 years that these cars will be produced domestically. The contract was awarded to Alstom, with production, assembly, and maintenance taking place at its plant in Thunder Bay, Ontario, and facilities in Quebec. The project is expected to create 700 jobs and replace a fleet where some cars are over 70 years old. The first cars are scheduled to enter service in 2031, with a full rollout by the mid-2030s.

This investment follows a July commitment of nearly $2 billion for 45 new locomotives and $357 million for a maintenance facility in Montreal. Transport Minister Steven MacKinnon described the project as the largest single investment in the history of Via Rail Canada, aimed at improving reliability and on-time performance.

The shift to domestic production occurs amid escalating trade tensions with the United States. The U.S. recently imposed 50 percent tariffs on $28 billion of Canadian goods, prompting Canada to plan countertariffs on over $20 billion of American goods on September 8. U.S. President Donald Trump responded to the rail announcement by accusing Carney of casting him as "the enemy" for political gain. Carney dismissed claims that Canada derailed trade talks for political advantage, stating that Canada is ready to negotiate provided its sovereignty and manufacturing interests are respected.