moved:
That, given that,
(i) over 5,000 auto sector jobs have been lost since the Prime Minister came to office,
(ii) the number of cars produced in Canada since 2016 has fallen by half, from 2.3 million in 2016 to 1.2 million in 2025,
(iii) the Prime Minister has introduced an auto strategy that subsidizes electric vehicles made in foreign countries,
(iv) the Prime Minister’s plan now requires Canadian workers to pay taxes that subsidize foreign-made vehicles they can't afford,
the House call on the government to fix their auto strategy by:
(a) scrapping the subsidies for foreign-made electric vehicles entering Canada that forces Canadian workers to subsidize $50,000 new cars;
(b) removing the GST on Canadian-made vehicles; and
(c) using their existing authority to reduce the amount of tax withheld on severance payments issued to workers at the GM CAMI facility in Ingersoll.
Mr. Speaker, pursuant to Standing Order 43(2)(a), I hereby divide each of the future Conservative caucus slots into two.
Before I get started on our important opposition day motion, I ask members to allow me to put a few words on the record concerning Tumbler Ridge and the devastating tragedy that happened just two days ago in that beautiful, peaceful community in British Columbia. I know all of our hearts are breaking for the families impacted by this. What has happened there is a parent's worst nightmare. I wanted to extend my condolences on behalf of Kildonan—St. Paul and Winnipeg to that community. We grieve with them. May God be with them all at the darkest of times.
Members of Parliament are sent to Ottawa to represent their communities, to represent Canadians, and the official opposition is tasked with the responsibility of holding the government accountable for its promises and actions. Shadow ministers have the additional responsibility of holding ministers and the decisions in their departments accountable.
Last week, the Minister of Industry, along with the Prime Minister, announced what they have told Canadians is their strategy for what is transpiring in our auto sector. It is very serious what is happening in our auto sector, and I will go through a few of the issues I have with the announcement and with the approach.
This is very serious. There are 5,000 families already out of work as a result of the Trump tariffs and the impact they are having on the Canadian auto sector. In 5,000 families, one of the income earners has lost their job. This is in addition to tens of thousands of manufacturing jobs lost, along with other offshoot jobs from the auto sector and other manufacturing sectors.
This comes after a decade of decline in our auto sector. Members may recall that in 2016, 2.3 million cars were manufactured in Canada. Less than 10 years later, that number is down to 1.2 million. In a decade, our output in the auto sector, the cars we are manufacturing, has declined almost by half, and now we are being hit with 5,000 job losses in just the first year of the Trump trade war and its impact on our auto sector in Canada.
The Liberal government has been in power for the last decade. How has it approached this? Just a few years ago, and I believe it was in 2022, the government, in partnership with Ontario, announced the largest subsidies in Canadian history for electric vehicles. It was not for gas-powered vehicles, where we were seeing the decline in manufacturing and the hits that were starting over the last decade, and it was not for where it is experiencing the most losses today. Just a few years ago, $52 billion in subsidies were announced for the manufacture of an electric vehicle supply chain for electric vehicle batteries and electric vehicles themselves.
Unfortunately, in recent months, the wheels have been coming off the bus on a lot of those commitments. For example, the keystone of that $52-billion commitment was the NextStar Energy manufacturing plant in Windsor, which was supposed to make electric vehicle batteries for Stellantis, one of the major car auto manufacturers in Canada. Just recently, Stellantis announced that it would be selling off its 49% stake in that to LG Energy, so now it may be making some car batteries, but it will also be making battery cells. It is no longer going to be the keystone of electric vehicle battery production that it was supposed to be when these massive commitments from the taxpayer were made.
If we look further, there are additional losses in this sector. For example, last month GM, which was also subsidized by these subsidies, announced a $6-billion writedown on its EV operations, warning it may post additional EV-related losses later this year. Meanwhile, of course, the Quebec government is attempting to recover nearly one-quarter of a billion dollars from the Northvolt facility there from a Swedish EV manufacturer that has gone bankrupt.
Also, Ford announced a $19.5-billion writedown on EV production lines after years of trying and failing to make electric vehicles profitable in the North American market. In fact, Ford's chief executive said, “It didn't make sense to keep plowing billions into products that we knew would not make money”.
That is in line with what Stellantis just recently said: “The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires.” Really, he was citing customer preference as the struggles in the electric vehicle market, so it is struggling. What was promised to Canadians, with the largest subsidies in Canadian history, has the companies severely struggling.
The companies have said that despite these massive commitments from the taxpayer, organized by the Liberal government and the Ontario government, this is simply not profitable. It is really unbelievable given, for example, that the NorthStar battery plant was a 100% subsidy for those batteries, and still the car company said it was not good for its bottom line and that it was bailing out.
What that speaks to is that this does not seem to be working in the North American market. There are a number of reasons. Electric vehicles are popular elsewhere, but they do not face, for example, the same weather Canada faces; we are a very cold country. We are also the second-largest country on earth. People travel long, long distances. To get from one city to another, people would have to charge their car multiple times, especially in winter. There are some serious problems with electric vehicles. As well, affordability is a big issue; they are quite expensive vehicles.
Last week, the Liberal government tried to do something about that, which I am now going to go into. It announced an EV subsidy of $2.3 billion for Canadians to purchase electric vehicles, so billions more are being poured into the electric vehicle sector from the Liberal government. Despite all of the losses, failures and delays, it is continuing to double down on this.
It is a front-loaded program. The minister has explicitly said that the purpose of this is to make it most generous in the first year of the five years it will be available. Her rationale was that the government wants to encourage people to quickly, and in a great volume, buy electric vehicles. It is fine if that is its policy, but our auto sector is struggling and losing thousands of jobs in this tariff war. One could think, “Great, people can buy electric vehicles manufactured in Canada,” except that we only make one electric vehicle, the Dodge Charger, which is an electric vehicle muscle car, in essence. Though it may be a great car, I am not sure if it is the first choice for many families. Still, I am sure it is a very good car, and I am glad Canadians make it. However, that limits the opportunity for Canadians to support Canadian jobs with this over-$2-billion, taxpayer-funded subsidy that is subsidized by working Canadians. The auto sector workers themselves are now subsidizing the purchase of electric vehicles.
Where are Canadians going to buy electric vehicles from? It will be from foreign countries. The last time the Liberals had a similar subsidy, 99% of it went to foreign auto sectors because Canada is not manufacturing the electric vehicles, so people are choosing to buy foreign ones. That is fine; Canadians can buy whatever car they want. If they want an electric vehicle, good for them. That is great. They can buy all kinds of cars. The problem is that if we are going to spend taxpayer dollars, the very dollars taken from the workers in the auto sector losing their jobs, should that money not be focused on the Canadian auto sector?
Why is the Liberal government sending money to subsidize the auto sectors of foreign countries? Again, we are talking about quite generous supports, $5,000 in the first year. Again, this is going to be front loaded, so the biggest sales are likely to be made this year, according to what the minister has said.
That leads me to my last point. We are seeing 5,000 job losses from the Trump administration's actions. The tariffs the U.S. is putting on the Canadian auto sector are costing us thousands of jobs, and many more to come are unfortunately likely. Now the Liberal government has introduced an electric vehicle subsidy, and electric vehicles made in the United States are eligible for this subsidy. The tax dollars of Canadian taxpayers, including the workers in the auto sector, are going to go to subsidize the purchase of electric vehicles manufactured in the United States. Why on earth are Canadian tax dollars and the hard-earned dollars from the auto sector workers themselves going to benefit the American auto sector?
For us, it is unconscionable. What we would do is introduce a tax cut: the federal sales tax off of all new cars made in Canada. That is what we would introduce so that the auto market in Canada is supported and there are more sales generated across the board in Canada. That is what Conservatives are proposing. It is a more fair approach, and it supports the Canadian hands that make Canadian-made cars, not the American electric vehicle sector. We should not be supporting that.
It is unconscionable that the tax dollars of auto workers losing their jobs are going to subsidize the purchase of electric vehicles made in Trump's America.