According to foreign media reports, Canadian auto parts supplier Linamar Corp. intends to expand its U.S. production footprint by acquiring over a dozen North American plants from automotive components manufacturer Aludyne Inc. On October 9, Linamar announced that it would invest $300 million (approximately CAD 420 million) to acquire Aludyne’s North American manufacturing assets, including aluminum casting and precision machining facilities primarily producing components such as knuckles, subframes, control arms, and axle housings.

Following the transaction, these Aludyne plants will be integrated into Linamar’s structural business unit. The acquisition is expected to be completed within the next 30 days. Linamar disclosed that the funding will come from its existing cash reserves and available liquidity.

The company highlighted that the product portfolios of both firms are complementary and share multiple automaker clients. Linamar CEO Jim Jarrell stated that the deal would “enhance supply chain stability” for these customers. Meanwhile, Executive Chair Linda Hasenfratz remarked, “This acquisition will solidify our leadership in lightweight aluminum casting and machining technologies that are ‘agnostic to propulsion types,’ while unlocking significant growth opportunities for our structural casting business.

It is reported that Linamar employs over 34,000 people globally, operating 75 manufacturing facilities across the automotive and industrial markets. Aludyne, headquartered in Southfield, Michigan, USA, has a workforce of slightly more than 2,400 employees across 12 locations in five U.S. states, with an additional factory in Mexico. Notably, despite escalating trade tensions between Canada and the United States, this acquisition will significantly expand Linamar’s footprint in the U.S. market.

Under the United States-Mexico-Canada Agreement (USMCA), automotive components meeting its requirements are exempt from U.S. sectoral tariffs. However, Trump administration officials have explicitly stated their goal to attract more automotive manufacturing capacity to the U.S. Meanwhile, Canadian Prime Minister Mark Carney previously announced that, in alignment with U.S. tariff exemptions for USMCA-covered goods, Canada would remove retaliatory tariffs on select U.S. products starting September 1, 2025. However, Canada will maintain tariffs on U.S. steel, aluminum, and automobiles during ongoing bilateral discussions to resolve related issues.

In March, after Trump confirmed that the U.S. would impose new tariffs on Canada and Mexico starting March 4, the Canadian government unveiled a comprehensive plan for retaliatory tariffs targeting U.S. products.