What are tariffs and how do they affect the automotive industry?

Tariffs are taxes imposed on imported goods. In the automotive industry, tariffs can significantly increase the cost of vehicles or parts crossing borders. When tariffs are imposed between countries like the U.S. and Canada, manufacturers sometimes halt production of certain models because the added costs make them unprofitable. This creates market opportunities for competitors who can produce similar vehicles without facing the same tariff barriers.

What is the difference between automakers and parts suppliers in this investment theme?

This theme includes two main types of companies: automakers (OEMs) like Toyota, Honda, and Ford who manufacture complete vehicles, and parts suppliers like Magna International and Visteon who make components used in those vehicles. The automakers can directly capture Nissan's abandoned market share by selling more of their competing models, while the parts suppliers benefit indirectly as these automakers increase production and require more components.

What are aftermarket parts companies and why are they included?

Aftermarket parts companies like Genuine Parts Company and Dorman Products make replacement components for vehicles already on the road. They're included in this theme because as the mix of popular vehicles on Canadian roads shifts away from Nissan models toward competitors, there will be a long-term opportunity to supply replacement parts for these newly dominant vehicle models as they age and require maintenance.

What does "tariff-exempt production facilities" mean?

These are manufacturing plants that can produce vehicles without incurring tariffs when selling to a particular market. For example, automakers with plants located in Canada can supply the Canadian market without paying import tariffs. Similarly, due to trade agreements like USMCA (formerly NAFTA), production facilities in Mexico may also avoid certain tariffs when exporting to Canada. This gives these manufacturers a significant advantage when tariff disputes arise.

What is "Projected Profit" in the stock data?

Projected Profit refers to analysts' forecasts of a company's future earnings. This metric helps investors understand how profitable a company is expected to be in upcoming quarters or years. For the companies in this theme, projected profits may increase if they successfully capture market share from Nissan in Canada, potentially leading to higher stock prices.

14 handpicked stocks

Canada's Automotive Opportunity

This carefully selected group of stocks represents companies poised to benefit from Nissan's production halt in Canada. Our professional analysts have identified automakers and parts suppliers strategically positioned to fill the market gap and capture abandoned market share during this unique industry disruption.

Han Tan | Market Analyst

Published on July 11

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Toyota Motor Corporation

Current price

$190.52

As a primary competitor, Toyota can leverage its Canadian and Japanese plants to supply SUVs and trucks, directly filling the market gap left by Nissa...

As a primary competitor, Toyota can leverage its Canadian and Japanese plants to supply SUVs and trucks, directly filling the market gap left by Nissan's unavailable models.

Honda Motor Co., Ltd.

HMC

Current price

$30.55

With significant vehicle manufacturing in Canada, Honda is perfectly positioned to increase production of its CR-V and Passport SUVs to capture market...

With significant vehicle manufacturing in Canada, Honda is perfectly positioned to increase production of its CR-V and Passport SUVs to capture market share from Nissan.

General Motors Co.

Current price

$59.36

General Motors can utilize its Canadian and Mexican plants to boost the supply of competing Chevrolet models to Canadian dealers without incurring tar...

General Motors can utilize its Canadian and Mexican plants to boost the supply of competing Chevrolet models to Canadian dealers without incurring tariff penalties.

Ford Motor Co.

Current price

$12.22

Stellantis NV

STLA

Current price

$10.37

Magna International Inc

MGA

Current price

$48.40

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+14.86%

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About This Group of Stocks

Our Expert Thinking

This theme capitalizes on a clear market disruption created by Nissan's decision to halt production of popular models for Canada due to tariff disputes. We've identified companies positioned to benefit from this rare opportunity to capture immediate market share as Canadian consumers look for alternatives.

What You Need to Know

This group includes both automakers with tariff-exempt manufacturing facilities and their key parts suppliers. The opportunity is event-driven and tactical, focused on companies that can quickly fill the supply gap in the Canadian market without facing the same tariff challenges.

Why These Stocks

These companies were specifically selected for their ability to benefit from this market disruption. They include automakers with production facilities in Canada, Mexico, or overseas, alongside their critical suppliers and aftermarket parts companies positioned for longer-term growth.

Group Performance Snapshot

14.86%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 14.86% over the next year.

9 of 14

Stocks Rated Buy by Analysts

9 of 14 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🚗

Market Share Up for Grabs

When a major player like Nissan halts production, their customers don't disappear—they shop elsewhere. These companies are perfectly positioned to welcome those buyers with open arms.

🔄

Supply Chain Ripple Effect

This rare market disruption creates a cascading opportunity throughout the automotive supply chain. From major manufacturers to parts suppliers, multiple companies stand to benefit from this shift.

⏱️

Time-Sensitive Opportunity

This is a tactical, event-driven situation happening right now in the Canadian market. The companies that move quickly to fill the gap will secure both immediate sales and potential long-term customer loyalty.

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