Good afternoon, Madam Chair and committee members.
Thank you for the invitation to take part in your study here today on the Canada-U.S. relationship and its impacts on the electric vehicle, softwood lumber and other sectors.
The Canadian Vehicle Manufacturers’ Association—CVMA—is the industry association representing Canada’s leading manufacturers of light- and heavy-duty motor vehicles. Our membership includes Ford Motor Company of Canada; General Motors of Canada Company; and Stellantis, FCA Canada.
CVMA members are at the forefront of new automotive investment in Canada. Over the past two years, Ford, General Motors and Stellantis have announced $6 billion in investment, which will create 3,700 direct jobs and tens of thousands throughout the auto supply chain. Over $4 billion of that investment has been earmarked for electric vehicle assembly right here in Ontario.
These investments are part of an unprecedented technological transformation taking place right now in the auto industry. Automaker investments in electrification alone are estimated to be U.S. $515 billion over the next five to 10 years, with the number of EVs available to Canadians expected to reach more than 120 models by 2023.
The transition to electrification is simply not possible without ambitious government efforts to address the well-documented barriers to EV adoption. Reducing the price gap between EVs and a traditional internal combustion engine vehicle is the single most powerful tool to help consumers make that switch to electric.
For that reason, the CVMA is a strong supporter of proposals to spur the adoption of EVs. Without large-scale changes in consumer behaviour, supported by incentives, it will be impossible for the U.S. or Canada to achieve their EV sales targets of 50% of new vehicle sales by 2030.
Proposals like the U.S. EV tax incentive in the build back better act will support the transition to EVs, but since we don't know what a revised U.S. credit will look like, it's difficult to say at this point what the impact will be on Canadian production. We urge the federal government to undertake a detailed analysis of the U.S. EV tax incentive on the auto industry to help inform potential solutions and proposals.
As you've heard from some of the previous witnesses, the auto industry is highly integrated throughout North America, and due to that highly integrated nature, the CVMA and our member companies support policies that align with and enhance further North American integration. Given the recently implemented CUSMA, there is a strong argument to be made for an EV incentive that supports CUSMA-region EV production.
At the same time, we should be taking actions now to support the transition to EVs and enhance our competitiveness as a manufacturing jurisdiction. Competition for job-creating investment is fierce, and we need to get serious about creating a competitive manufacturing environment. We recommend the following actions.
First, match U.S. EV adoption policies. It's critical that Canada’s EV policies be aligned with those in the U.S. to support the consumer transition to EVs, including those on consumer incentives and charging infrastructure. Canada must be prepared to both continue and increase—