The Government of Canada announces investment in Prevost (Volvo Group Canada Inc.) in Sainte-Claire to support Canadian bus manufacturing and clean transportation

Prevost will modernize its bus platform using electric propulsion technologies, including low- and zero-emission solutions

SAINTE-CLAIRE, QC, Oct. 16, 2026 /CNW/ -- The Government of Canada is making investments to maintain a strong Canadian vehicle industry as it adapts and enhances its competitiveness in the face of challenges posed by U.S. trade actions on Canadian-made cars, trucks and buses. These investments are helping improve supply chain and manufacturing efficiencies and reduce the impact of U.S. tariffs.

Today, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, on behalf of the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced an investment of $18.5 million in Prevost, a division of Volvo Group Canada Inc., through the Strategic Response Fund, in support of an $87.5 million project to develop a new vehicle platform. The One Prevost Platform will support multiple propulsion technologies, including clean and zero-emission options.

Through this project, Prevost aims to strengthen its supply chain and research and development capacity. Today's investment aligns with the objectives of Canada's new auto strategy, which Prime Minister Carney announced in February 2026.

The investment will help secure the company's long-term manufacturing presence in Sainte–Claire, Quebec, while also enabling the development of new intellectual property and positioning Canada as a hub for advanced bus manufacturing.

With this project, Prevost will maintain 1,265 full-time equivalent jobs and employ students for 156 co-op terms in Canada. Support for this project will preserve jobs threatened by tariffs and strengthen the local economy of the rural community of Sainte-Claire.

The investment announced today marks another milestone in advancing the vision set out in the auto strategy. It supports efforts to solidify Canada's role in the global vehicle and electric vehicle battery supply chain, accelerate the transition to lower emissions, and foster a strong, sustainable economy that creates quality jobs and long-term benefits for Canadians.

Quotes

"Canada is a leading vehicle-manufacturing nation, built on highly skilled workers, advanced innovation and strong global partnerships. This Strategic Response Fund investment in the One Prevost Platform will help secure long-term manufacturing in Quebec, deepen collaboration with international partners like Volvo Group and accelerate the development of next-generation technologies. It reinforces our commitment to protecting jobs, growing our vehicle manufacturing sector and positioning Canada as a global leader in zero-emission vehicles."
– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

"Our automobile industry is a driver of Canada's economy, and it's facing an increasingly competitive market. With our $18.5 million investment in Prevost's platform project, we are reinforcing Quebec's and Canada's position in the global automobile and battery supply chain, and we are making that supply chain more resilient. The funding will enable the company to innovate in key sectors like propulsion technologies, the production of leading-edge coach buses and the manufacturing of electric vehicle parts. In practical terms, this means 1,265 jobs safeguarded today and for decades to come."
– The Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant

"This investment by the Government of Canada marks a decisive milestone for our organization. It is a strong vote of confidence in our capacity to innovate and strengthen the future of Canada's vehicle manufacturing sector. This crucial financial support will enable us to develop next-generation mobility solutions, support quality jobs, enhance our technological expertise and contribute actively to the economic prosperity of our community. This funding will support the development of a new commuter motorcoach for the public sector as well as the electrification of our X-series model. This partnership gives us the means to respond effectively to today's challenges and sustainably improve citizens' quality of life. We extend our sincere thanks for this essential support."
– François Tremblay, President, Prevost and Volvo Group Canada Inc.

Quick facts

• Volvo Group Canada Inc. is a privately held company, incorporated in 2008 and headquartered in Montréal, Quebec. The company is ultimately owned by AB Volvo, headquartered in Gothenburg, Sweden. The global Volvo Group is active in trucks, buses, construction equipment, engines and related services.
• Founded in 1924 in Sainte-Claire, Quebec, Prevost, a division of Volvo Group Canada Inc., is a market-leading coach bus manufacturer, selling multiple products in both Canada and the United States to private and public customers.
• Canada's climate targets require rapid adoption of zero–emission buses. Domestic production accelerates deployment by reducing procurement delays and promotes domestic investments that support high-quality manufacturing jobs for Canadian workers.
• In the past year, Canada has responded to the immediate threat of U.S. tariffs with targeted actions to defend Canadian industry and workers, including in the automotive sector. These include $5 billion through the Strategic Response Fund (SRF) to help firms in all sectors impacted by tariffs adapt, diversify and grow.
• The SRF helps Canadian industries innovate, adapt and compete in a changing global economy. It supports large-scale, transformative projects that build economic resilience, strengthen supply chains and protect good jobs in key sectors such as steel, aluminum, automotive, forest products, AI and advanced technologies.

Associated links

• Strategic Response Fund
• The future of Canadian vehicles
• Backgrounder: Prime Minister Carney unveils Canada's new automotive strategy
• Prevost: News
• Volvo Group
• Dun & Bradstreet Business Directory Company Summary: Volvo Group Canada Inc.
• Joint statement by Canada and Sweden on sustained engagement on critical raw materials, battery value chains and emerging technologies

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Contacts: Gabrielle Landry, Deputy Director, Media Relations, Office of the Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, [email protected]; Laurence Gagnon, Director of Communications and Issues, Office of the Quebec Lieutenant, 343-597-6142, [email protected]; Media Relations, Innovation, Science and Economic Development Canada, [email protected]