Mr. Speaker, before I begin my remarks, I would simply like to say that, as a member of Parliament, as the member for Bourassa, and above all as a father, I am deeply affected by the events that occurred in Tumbler Ridge on Tuesday evening. I would like to express my sincere solidarity. I would also like to express my deepest sympathies to the victims, their loved ones, their families and the community of British Columbia. During this difficult time, all of us here are united by compassion, respect and the desire to support one another.
I rise today to speak to a matter of strategic importance to our economy and to hundreds of thousands of families. It concerns the future of the Canadian auto industry. This industry supports more than 500,000 jobs in Canada and is one of the pillars of our manufacturing base.
It has shaped our prosperity for more than a century and continues to structure entire communities.
The facts are clear. Unfortunately, this sector is undergoing major changes. Since 2016, auto manufacturing in Canada has decreased from about 2.3 million vehicles to about 1.2 million vehicles in 2025. Moreover, over 5,000 jobs have unfortunately been lost in this industry over the last few years. We must respond to this reality seriously and with determination.
Today, more than 90% of vehicles assembled in Canada and close to 60% of auto parts are exported to the United States. This dependence makes our industry powerful, but it also makes it vulnerable.
Our automotive strategy is based on clear principles: Produce more in Canada, innovate in Canada and protect Canadian jobs.
That is why the automotive strategy is based on a simple principle: Produce more here in Canada, innovate here in Canada and protect our workers.
That is why we are mobilizing major investments, including $3 billion from the strategic response fund and up to $100 million from the regional tariff response initiative to help the auto industry adapt, modernize and diversify.
We are also supporting the energy transition with clear, achievable and quantitative targets. We want to achieve a goal of 75% EV sales by 2035 and 90% EV sales by 2040. To support domestic demand, we are implementing a $2.3‑billion, five-year program to make EVs more affordable through incentives of up to $5,000 for EVs and $2,500 for plug-in hybrids. We are also investing $1.5 billion to develop the national EV charging network in order to remove a significant barrier restricting EV adoption.
These measures have a clear objective: to produce the vehicles of tomorrow here in Canada. Earlier, I was talking about limitations mainly having to do with travelling very long distances. I myself have an electric vehicle. This is one of the things our government wants to work on to achieve these clear objectives. The goal is to produce the vehicles of tomorrow right here in Canada, but also to be able to actually use them in our country, which is extremely big.
At the heart of this strategy are people. There are workers. We are investing $570 million to support employment, training and retraining. This could reach up to 66,000 workers across the country. We have already approved more than 1,350 work-sharing agreements, which have prevented more than 18,500 layoffs. Enhanced employment insurance measures will allow more than 190,000 workers to receive extended support, including up to 20 additional weeks for long-tenured workers. These measures are not theoretical. They protect real jobs. They are being applied in real factories and in the very real communities that each and every one of us here represents.
Now let us talk about the transition to electric vehicles. This is not just an environmental issue. It is also a transition to a new economic trajectory. Electric vehicles cost up to 50% less to maintain and up to 10 times less to power than gas vehicles. Adopting EVs creates jobs, attracts investment and strengthens our global competitiveness.
Canada has major strengths in its critical minerals, expertise in artificial intelligence, clean energy and a skilled workforce.
We also have access to 51 countries and more than 1.5 billion consumers through our trade agreements. The challenge is clear: If we want to remain an automotive nation, we must invest. Our strategy aims to strengthen domestic production, attract investment and protect workers while positioning Canada as a global leader in the transportation of tomorrow.
I will conclude with this. The true economic strength of a country like ours is measured not only by its exports, but also by its ability to create quality jobs right here in our country and to prepare for the future of our workers, our families, our regions and our communities.
That is what we are doing. We are building a modern industry, strengthening our industrial sovereignty and preparing the Canadian economy, and we are doing it with workers.