Thank you, Chair and committee members.
Thank you for the opportunity to be here this evening and to participate in your study on car theft in Canada.
Auto manufacturers are deeply concerned about the rise of car theft in Canada. The industry is actively working with stakeholders, including the federal government, provincial and municipal governments, insurance and law enforcement to understand the challenges and find solutions to deter vehicle theft.
Manufacturers are continually innovating and improving anti-theft measures to strengthen vehicle security for their customers. Vehicle theft deterrence and security system enhancements that are under development or deployed include passive ignition immobilization, active warnings in the event of an unauthorized vehicle entry, dashcams with surveillance modes, parts marking, hidden VIN markings, stolen vehicle location services, software updates, supplemental unlock code entry in the radio and software lockdowns to prevent programming of extra key fobs, just to name a few.
Manufacturers alone cannot reduce auto thefts rates in Canada. Effective solutions to this crisis depend on correctly diagnosing the source of the problem.
Vehicle theft rates have grown much faster in Canada than in the United States since 2021. This is despite stronger regulatory requirements for Canadian vehicles in the form of the mandatory engine immobilizers and fitting of the same technologies in new vehicles in both countries.
The question is: What explains this divergence in theft rates if we have more secure vehicles in Canada by default? The answer is concerning. Sophisticated, transnational, organized crime groups have targeted Canada, where the risk of prosecution is low and the financial reward is high. To successfully combat vehicle theft, we need a comprehensive plan to target organized crime groups and close the export market for stolen vehicles. Such a plan should include the following action items.
Number one is funding for law enforcement. Law enforcement agencies require more resources to tackle vehicle theft like the auto task force that we just heard about. A dedicated auto theft reporting mechanism for the public would facilitate coordinated and expedited enforcement action. Expanded authorities for local law enforcement to access intermodal facilities based on stolen vehicle intelligence would also help stem the movement of stolen vehicles domestically.
Number two is Criminal Code changes. The profits generated through auto theft grossly outweigh the risk of capture, prosecution and sentencing for organized criminals. The Criminal Code needs to be strengthened so that there are real consequences for vehicle thieves.
Number three is resources for the Canada Border Services Agency. Investments into personnel, container imaging machines and remote VIN verification technologies would help stem the flow of stolen vehicle exports. The recent recovery of 598 stolen vehicles at the Port of Montreal underscores the vulnerabilities at our ports.
Number four is policy coordination. Auto manufacturers are being asked to increase vehicle security while simultaneously being regulated by right to repair legislation, including at the federal level, to provide full access to the data stored and transmitted by vehicles beyond what is needed for repair. This works directly against the efforts of auto manufacturers to keep vehicle systems secure.
Finally, no solution is complete without ongoing collaboration between manufacturers, government and law enforcement agencies. We are committed to continued engagement.
We thank you for the opportunity to be here today and present our recommendations, and we look forward to any questions.
Thank you.