Thank you, Mr. Chair and committee members. I appreciate the invite.
The Canadian Vehicle Manufacturers’ Association is the industry association that represents Canada’s leading manufacturers of light and heavy-duty motor vehicles. The membership includes Ford, General Motors and Stellantis.
CVMA members have been operating in Canada for over 100 years. They are responsible for most auto production, having built over 100 million vehicles since 1945. Today, they are the largest employers, investors and innovators in Canada.
Ford, General Motors and Stellantis are at the forefront of the transformation to electrification. General Motors and Ford are the top sellers of electric vehicles, while Stellantis is the only manufacturer that is building plug-in hybrids and EVs right here in Canada today.
Given the leading role that CVMA members play in electrification, their success in Canada is fundamental to the government’s EV ambitions. Addressing the immediate challenges facing auto manufacturers will ensure that Canada has a role in the emerging North American EV supply chain.
With that, I’m going to recommend the following actions to support EV adoption and to secure Canada’s role in the automotive supply chain.
Number one is to bolster demand for EVs and EV adoption. We welcome the federal government’s renewal of EV purchase incentives and the commitment to developing a robust charging infrastructure network. CVMA members are well positioned to support the shift to electrification through their diverse product offerings. That said, as we just heard from the previous witness, there’s much work to do on the infrastructure side.
The charging gap in Canada continues to grow. There are 39,000 charging ports in Canada as of yesterday—those are public charging ports—of a required 450,000. To meet the government’s 75% EV sales target, we need a credible charging strategy.
Number two, we need to secure access to the U.S. market. With over 90% of Canadian production destined for the U.S., there is no industry without U.S. access and North American integration. Diversification is not an option. Markets in Europe and Asia are better served by assembly plants in those regions. Our market alone is too small to justify large-scale manufacturing.
The future of our industry and our ability to play a role in electrification depend on securing our trade relationship with the United States. That means the removal of section 232 tariffs and the renewal of CUSMA.
Number three, we need to eliminate the Canada-China strategic partnership. The agreement negotiated with China to allow 49,000 EVs into Canada, equivalent to about one-third of the total number of EVs sold in this country, will undermine the auto sector and presents risk to the North American auto supply chain. China does not adhere to the rules-based trade and investment principles that have been fundamental to the success of the auto industry and the broader Canadian economy. There are also no guardrails in this agreement to ensure a level playing field for manufacturers that have invested in Canada or to protect Canadians from cybersecurity risks.
Number four, we need to make Canada more competitive. Canadian auto manufacturers are currently navigating an unprecedented period of volatility. Tariff costs through 2025 reached approximately $5 billion, eroding the competitiveness of domestic production and making Canada an increasingly difficult environment for investment.
We should strive to make Canada one of the most competitive jurisdictions in the world for automotive investment. This means reducing the regulatory burden on companies and lowering the cost of investing in plants, machinery and R and D. For example, the costly and redundant EV mandate remains in place today, three months after the Prime Minister announced it would be repealed.
While urgency is required to remove the EV mandate, the opposite holds true for the development of Canada’s sovereign GHG regulations. Rushing the development of Canada-unique regulations creates serious risks for Canada. It will create market distortions and will produce a fundamentally flawed policy. CVMA members are ready to work collaboratively with government to develop thoughtful, well-designed regulations that reflect market realities while advancing Canada’s climate objectives.
Thank you.