January 8, 2026
RED FM News Desk
The federal government has asked South Korea and Germany to help secure auto manufacturing commitments in Canada as part of their bids to build the Canadian navy’s next generation of submarines, according to a source familiar with the discussions.
The source, who was not authorized to speak publicly, said Ottawa has requested that the two governments facilitate pledges from major automakers to expand or establish production in Canada as part of the overall submarine proposals.
Canada last year narrowed its submarine search to two contenders: South Korean conglomerate Hanwha, and a German-Norwegian bid led by defence contractor ThyssenKrupp Marine Systems.
Any submarine contract would be structured as a government-to-government agreement, the source said. As part of those negotiations, Canada has asked South Korea to arrange a commitment from Hyundai to set up production in Canada, while Germany has been asked to strengthen Volkswagen-related auto manufacturing activity in the country.
The requests underscore Ottawa’s effort to leverage major defence procurements to secure broader industrial and economic benefits for Canada, particularly in the auto manufacturing sector.
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