Motor Mouth: America’s rush to EVs might kill the entire Canadian auto parts business – Driving

November 27, 2021 by No Comments

‘Build Back Better’ may stimulate the American auto industry, but it will kill Canada’s

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David Booth

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Nov 26, 2021  •  1 day ago  •  5 minute read  •  14 Comments President Joe Biden delivered remarks on the bipartisan infrastructure law and the future of electric vehicles at the grand opening of the General Motors Factory ZERO in Detroit, Michigan on November 17, 2021. Photo by Dominick Sokotoff /Reuters

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Politics is very interesting and always leads to conflict.

Ridley Scott

“This discriminatory action” could be the “death knell” of the Canadian auto industry . So says Flavio Volpe, and he should know, since he’s the president of the Auto Parts Manufacturers’ Association of Canada, the organization tasked with, amongst other things, enticing automakers and their associated suppliers to build their production plants here in the Great White North. And if he says something could adversely affect the Canadian auto manufacturing business — which employs some 135,000 Canadians directly and another 400,000 in related industries — we should all be concerned.

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The discriminatory action in question is the United States’ proposed Build Back Better program, a surprisingly protectionist policy (only slightly) disguised as pandemic relief. More specifically, its incentive programs so completely favour American-built BEVs that it would almost completely shut down all Canadian exports of electric vehicles. Indeed, electric vehicles built in any country other than the U.S. would be so disadvantaged that automobile exports — at least moderately priced models powered by batteries — to the United States would virtually stop.

Too extreme a prognostication for you? Well, here’s how the program is supposed to work. Decide for yourself how it will affect the Canadian manufacturing industry.

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If passed, Build Back Better would, according to Daniel Breton, president and CEO of Electric Mobility Canada, “expand and modify the tax …….

Source: https://driving.ca/column/motor-mouth/motor-mouth-americas-rush-to-evs-might-kill-the-entire-canadian-auto-parts-business

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