Canada relies on foreign auto executives for its auto industry. It already provides huge taxpayer subsidies per job. There is certainly a possible future where all of those foreign loyal companies side with US to destroy Canadian auto production/investment.
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China could help save Canadian auto industry by providing motors and batteries for Canadian made EVs. Chinese investment to make goods from Canadian resources in Canada is a path for scale that includes global export potential of autos and other industrial goods to whole globe including China.
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If it doesn’t make economic sense to make our own tube socks, it doesn’t make sense to make overly expensive cars, either. There is a stronger national security argument for apparel, that needs yearly replacements, than solar, batteries, and autos that last 20+ years. More so, when they are not dependent on continuous international fuel supply chains/geopolitics.
Pressure on foreign executives to support Canadian production includes access to Canadian market. The stability of status quo will appeal to most people. But the threat/plan B of cooperation with China is both a path to manufacturing and resource FDI paid by China instead of taxpayers, and better quality of life through better value goods.
If the manufacturers we have here don’t want to make EVs, we have no EV manufacturing jobs to protect. Unless we’re planning to live on ICE vehicles into the climate crisis, we have to get a source of EVs. The options are import and FDI (foreign direct investment (build factories here)). FDI is probably preferable since it gives us the ability to make the vehicles we use. If we go for import, we probably want the cheapest possible deal that fits the bill, unless we want to pay extra for a good reason. E.g. we may want to buy European. Of course we have to ask whether that’s worth the cost given that they source some of their components from China. I think some European autos are planning to use Chinese platforms for their vehicles. At that point it may or may not make sense to pay the premium. That differs from maker to maker. E.g. Renault’s latest EVs seem EU-made. More broadly, the less in corporate profits we pay for our EVs, the more money are left in our pockets to spend on other Canadians. The cheaper the EVs, the less the cost of Canadian businesses using them is and the more competitive they are.
Didn’t Trudeau make a number of tax ince tive deals relating to EV production years ago?
The issue now is likely tarrif related.
With VW, this is why subsidies shouldnt exist for profitable companies
Agreed.
The key is batteries. Honda is supposed to be making a battery factory (and whole EVs) in Ontario. It is a key “sensible option” to continue supporting. But there has to be a threat of abandoning all product sales from manufacturers who abandon Canada.
Chinese technology for battery plants in Canada using Canadian materials (other than lithium) can make good value EVs in Canada. I don’t know that Honda can do the same.
The Stellantis factory in Windsor seems to be on track to make cells this year. But someone has to put them in cars. Cars that are affordable.