Mr. Speaker, it is an honour for me to rise in my place today to participate in the debate on our opposition motion, which calls on the federal government to support the Conservative plan to double automotive production through a tariff-free auto pact. This bold new policy offers a fresh take on a similar policy, embodied by the old auto pact rules that resulted in Canada's auto manufacturing growing from 700,000 units a year to three million by 1999.
This Conservative plan makes our goal clear. We seek to double auto production to two million vehicles a year, which are the same levels we had before the Liberal government took office 10 years ago. The viewers at home heard that right. Since the Liberals took office in 2015, auto production in Canada has been halved. In 2016, Canada built 2.3 million vehicles. Last year, that auto production was only 1.2 million. In only one year since the Prime Minister took office, Canada has lost 7.8% of its auto production. As output falls, jobs vanish.
In 2015, Canada's passenger vehicle and light truck assembly plants employed 32,700 people. By 2024, that number had dropped to 23,732. In the last year alone, since the Prime Minister took office, Canadians have watched in utter disbelief as 5,000 great-paying auto jobs disappeared and moved to the United States.
Under the federal Liberal government, Canada's auto industry has been in decline for 10 years and it is slipping away, with potentially irreparable damage being done to Canada's economy if no immediate federal action is taken.
We are seeing this decline in the Niagara region as the local GM powertrain facility in St. Catharines faces great uncertainty because it produces only one line of engines in a facility that is almost two million square feet in size. I am GM proud. I drive a GM vehicle, whose very engine was made in St. Catharines by Canadian GM workers. GM has been in business in St. Catharines since 1929. That is close to 100 years. I also worked at our local GM plant as a student during my university years. At that time, GM in St. Catharines had three plants, employing close to 10,000 workers with great-paying jobs.
Today, our local GM footprint has been reduced to just one plant and a much smaller workforce of Unifor Local 199 members. There are roughly 450 active workers at the plant, with 200 laid off. As a Niagara area MP and as the member of Parliament for Niagara Falls—Niagara-on-the-Lake, I have a responsibility to represent the current and former GM workers who reside in the communities in my riding.
Last April, the Prime Minister ran a campaign promising an elbows-up approach to Canada-U.S. trade relations. He promised to protect the auto sector. He committed to tabling a plan that would persuade the Americans to remove tariffs on Canadian goods. He promised to get tariffs removed by July 21, 2025, but this was all an illusion, as 246 days after July 21, 2025, American tariffs remain and Canada's auto manufacturers have been forced to pay Donald Trump close to $2 billion. One year since the Liberals' election promises were made, they have been broken, while Canadian auto production continues its decline and Canadian auto job losses are piling up.
Rather than doing what he said he was going to do, the Liberal Prime Minister has decided to accept that American tariffs are permanent and he has declared a deep rupture with our largest trading partner, neighbour and ally. Worse, he has introduced a new EV policy and rebate that use Canadian tax dollars to subsidize the purchase of foreign-made automobiles. He is also allowing the import of 49,000 Chinese EV spy cars into this country after declaring a new world order with countries like China, the nation he said was our biggest security threat during the last federal election.
Canadian auto workers deserve stronger federal leadership. The last thing they want is imported Chinese EVs taking their jobs away even faster, or the federal government doubling down on a fantasy EV industry that does not exist without the demand, affordability or sufficient charging infrastructure in place. That is why our Conservative leader is stepping up to take initiative and demonstrate leadership.
While the Liberals have decided to accept that American tariffs are permanent and declare a deep rupture with our largest trading partner, Conservatives are proposing policy ideas to make it easier to build and buy Canadian by:
...removing the GST on all Canadian-made vehicles, ending counterproductive Liberal EV mandates and [subsidies], and harmonizing tailpipe emissions reductions with our North American partners;
...bringing home production...by implementing a rule where for every car produced in Canada, the same manufacturer would get to sell a car in Canada, duty-free, from a CUSMA partner, on a dollar-for-dollar basis, similar to the 1965 Canada-US Auto Pact; [and]
...protecting North American supply chains by maintaining the minimum 75% North American content and existing CUSMA rules on origin....
Conservatives believe it is possible to get a North American free trade agreement for the auto sector. The Liberals have given up and think that somehow, when it has never happened before, European and Asian EV sales will materialize and make up for the decline that will happen because of the U.S. tariffs. What the Liberal government is proposing is a fallacy. The Liberals' plan includes exporting EVs to Europe. Simply put, more vehicles were stolen in Canada last year, including the the justice minister's vehicle, than were exported to countries in Europe.
We have a plan to get tariff-free access to the United States. It would boost auto production. It is supported by Unifor Local 222, which said, “Finally, a common sense plan” to restore auto production. Why can the Liberal government not get on board with us and support our common-sense proposals?
Our policy approach would restore manufacturing balance for both Canada and the U.S., thus making a duty-free agreement not only possible, but also beneficial for both countries. For Canada, that would mean increased production of 500,000 to 800,000 units to get North American duty-free access. In addition to this, removal of the GST, a 5% pricing cut, adds up to $30,000 new sales a year, which increases demand and production by the same amount. We forecast that the current production will rise from 1.2 million to two million within a decade.
Just today, I met with Unifor representatives who told me that buying Canadian, along with sell here, build here policies, are very important to them. That is what this policy encourages. It is a common-sense plan to protect the livelihoods of thousands of hard-working Ontario auto workers. The Canadian Vehicle Manufacturers' Association saw the benefit of our policy proposal when it stated, “North American integration has underpinned Canada’s auto industry for over 60 years”. This plan recognizes that reality.
Conservatives will not sit idly by as our proud Canadian auto industry is hollowed out and lost due to Liberal inaction. We are stepping up, demonstrating federal leadership and offering real solutions to save the jobs of our great Canadian auto workers. They deserve it.