(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.
She said: 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 , along with the , 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 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 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.
:
Madam Speaker, it is indeed an honour to rise today to speak to the opposition day motion. Before I begin my remarks, I too want to express my sincere sympathies and condolences to the people of Tumbler Ridge, B.C. It was an incredible tragedy, and I want them to know that I and the people I represent in Barrie South—Innisfil are thinking of them. We send our love and our comfort to them during this unimaginable time. Having gone through tragedies ourselves, losing two police officers in 2022, we know the coming days will be dark days for the community of Tumbler Ridge, but the love and comfort of our nation is with them. Members in this place certainly expressed that yesterday.
We are dealing with an opposition day motion on an EV mandate, and I want to focus on three things that the opposition is asking for today. Number one is scrapping the subsidies for foreign-made electric vehicles entering Canada, which force Canadian workers to subsidize $50,000 new cars. Two is removing the GST on Canadian-made vehicles. This was something that was in our Conservative platform in the last election, as a measure to spur on Canadian sales of Canadian-made vehicles. The last thing is for the government to use its existing authority under section 153 of the Income Tax Act to help the workers in Ingersoll who have been devastated by job losses and, worse yet, have had to pay taxes, right now, on their severance pay. We are trying to help those workers in that regard.
In 2023, the then Trudeau government implemented an electric vehicle mandate that would require 100% of vehicles sold in Canada to be electric by 2035. For years, Canada's Conservatives have been clear that forcing 100% of new vehicle sales to be electric by 2035 was unrealistic and created prolonged uncertainty for manufacturers and workers making long-term investment decisions. The one thing businesses cannot afford is uncertainty and doubt when making those decisions.
By cancelling the EV mandate recently, the and the Liberals signalled and admitted that Conservatives were right all along. However, their solutions will still leave Canadians and Canadian workers behind. Canadians cannot afford to keep paying into EV subsidies for vehicles they cannot afford and that are not built by our workers. The announcement by the government wastes $97 million in taxpayer money on its environmental crusade and ideology. Of this spending, $84 million will go toward EV charging stations across the country, with no connection between the amount of funding and the number of chargers delivered. This adds more fuel, frankly, to the fire that was last week's announcement that the Liberals will be spending $2.3 billion in subsidies that will mostly go to foreign EVs.
When looking at the numbers, Conservatives found that in 2023, 99% of EV rebates went to foreign-made cars. There is only one Canadian EV that is made in Canada and qualifies for the rebate, and that is the Dodge Charger EV, which is unaffordable to most. They simply cannot afford it, as part of the middle class.
Canada's own auto sector is hurting, and Canada's workers are being put out of jobs. Since 2016, vehicle production has been cut nearly in half, from 2.3 million cars per year to 1.2 million in 2025. Real GDP in auto manufacturing fell another 10% in November alone, and 5,000 auto sector workers have been laid off in the last year.
As a member of Parliament from central Ontario, I am very proud of the investment that Honda Manufacturing has made in Alliston. There is a significant concern not just among the members of Parliament from central Ontario but among those workers, those thousands of workers, many of whom live in my riding of Barrie South—Innisfil. They are quite concerned about the state of the auto sector as it stands right now under the Liberal government.
For the 1,200 workers at the CAMI facility in Ingersoll who have been laid off, the severance pay and lump sum payouts are reduced by the minimum tax rate, meaning that over 50% of their payouts are held by the government until these workers file their taxes.
Canada's Conservatives are asking the Liberals to use their existing authority to reduce the amount withheld in these payments, which can simply be done by the under section 153 of the Income Tax Act.
Instead, the government has labelled helping laid-off workers as political malpractice, announced a rebate that will subsidize American-made EVs, and committed a swath of taxpayer cash for EV charging stations. While Donald Trump continues to slap additional tariffs on our auto workers, the decided to give Americans access to this $2.3-billion subsidy.
Canadian taxpayers should not have to subsidize American EVs when the trade conflict with the U.S. has already cost 5,000 Canadian auto manufacturing jobs and 37,000 manufacturing jobs since the took office. He needs to answer as to why Canadian tax dollars would subsidize American EVs and to stop this insult to workers, who have seen production leave to the U.S. They will be the ones who are now paying the price.
I will provide some examples of vehicles that are manufactured in the United States but sold in Canada under the $50,000 manufacturer's suggested price that may qualify for this: The Volkswagen ID.4, which has a suggested price of $46,000, is assembled in Chattanooga, Tennessee; the Chevy Bolt is manufactured in Kansas City; the Tesla Model Y is manufactured in Austin, Texas; and the Ford Escape plug-in hybrid is manufactured at the Louisville assembly plant in Kentucky.
Here are other identified eligible electric vehicles that are made outside the U.S.: The Chevy Equinox EV is assembled in Mexico; the Hyundai Kona Electric is manufactured in South Korea; the Fiat 500e is manufactured in Italy; and the Nissan Leaf is manufactured in Japan. There are other examples of vehicles that are made in South Korea, Japan, the United States and other places, like Mexico, where Canadian workers will be subsidizing the purchase of these EVs under this new scheme and regime that was announced by the government.
Auto workers are losing their jobs. There are hard-working, middle-class taxpayers right now who can barely afford the essentials and the necessities of life. They are being asked, under this new scheme, to subsidize vehicles that are not going to be manufactured in Canada, resulting in more uncertainty and more doubt within the automotive sector with respect to where this investment is going.
As an example, the member for said that we have seen $53 billion put into the EV sector that is basically money that has been poured down the drain. We see a retrenchment now in the investments by auto manufacturers and the auto sector on the EV mandates, largely because the largest consumer market in the world, which is the American market, has moved away from EV mandates. However, here we are in Canada, doubling down on a failed policy as a result of ideology that is going to cost Canadian workers billions more hard-earned dollars to subsidize not just a failing industry but also vehicles made in the United States.
Today, Canada's Conservatives are standing up not just for those auto workers and the 600,000 people who are employed in the auto sector, either directly or indirectly, but also for those hard-working Canadians who pay their taxes, are having trouble paying their bills, and are now being asked by the Liberal government to subsidize vehicles that are going to be made in other countries. It is wrong. This motion attempts to address that. It is another solution proposed by Canada's Conservatives to fix what has gone wrong over the last 10 years as a result of the failed economic and ideological policies of the Liberal government.
:
Madam Speaker, I appreciate the opportunity to address the House on this very important issue today.
I would like to start by sharing my condolences on behalf of the people of Taiaiako'n—Parkdale—High Park with the people of Tumbler Ridge and of Kitigan Zibi Anishinabeg First Nation on the horrific attacks of the last 48 hours. May the light that we all generate in our worlds help them and shine with them in their moments of darkness.
I want to thank my colleagues from and for their interventions. This issue matters because we are an auto-producing nation; we are a driving nation. Automobile production is fundamental to the economy not only of southern Ontario but across Canada. The automotive experience is something that is fundamental to almost all Canadians.
[Translation]
We are entering the fifth era of auto manufacturing in Canada. The recalled the early days of the auto industry in Canada, a history that began in the 19th century. For most of the 1900s, Canada had its own auto manufacturing plants.
[English]
The auto pact really brought in the second era of automobile manufacturing.
[Translation]
The auto pact between Canada and the United States really boosted Canada's automotive economy, especially in southern Ontario. It created thousands of jobs and generated billions of dollars for our economy.
That era was beneficial for our economy. It led to the development of both automotive facilities and the workforce. These workers continue to lead today's automotive sector, and we still depend on that sector, particularly in southern Ontario.
However, the emergence of Japanese manufacturers, along with their methods and ability to manufacture automobiles more efficiently, influenced subsequent government policies, here as elsewhere in North America. It also influenced the public's preferences, as they wanted to buy more Japanese cars.
In the 1980s, the country's leaders and public policy makers, our predecessors, decided to invite Japanese manufacturers to set up operations in Canada, notably in southern Ontario. It was beneficial for us in that it created more jobs and new manufacturing facilities, and it grew our economy. That era also lasted about 20 years.
We then entered the fourth era of the North American auto economy, the era of government subsidies worldwide. This development was accelerated by the 2008 economic crisis, and governments chose to establish closer partnerships with American automakers as well as automakers in Japan and other countries. At the end of the fourth era, governments partnered with automakers to attract investment in the sector.
We are now entering the fifth era of the automobile manufacturing industry in Canada and across North America. This new era is being shaped, as the noted, by a rupture in the free trade system and the world order and the need for middle powers like Canada to find new partners.
[English]
We are now in the fifth era of automobile manufacturing in Canada, a time when our old alliances and our old ways of doing things are under tremendous stress, primarily from the trade threat to the south but also because of new technologies, new consumer tastes and the new desires that we have to build the country in a different way. This is an era of opportunity for Canada.
The auto strategy that we have put forward builds on the incredibly strong capital base, technological base and base of both consumers and workers, who are the best workers in the world and I will get to that shortly, to make this transition so that we are no longer solely dependent on one market. It will allow consumers and workers to share equally in that future.
As members probably know, this is a sector that is incredibly contributive to the economy of Canada and, in particular, southern Ontario. In 2025, it contributed approximately $16.8 billion to our GDP and 125,000 direct jobs in the sector through assembly, parts and related jobs, not to mention the related jobs in dealerships or servicing.
The entire economy of transportation that is auto-related in Canada is a very strong one. Of the 1.2 million to 1.3 million vehicles we manufacture now, approximately 90% are currently exported to the United States. The opposition is telling a bit of a story around the manufacturing sector. It seems to be implying that we are selling primarily to Canadians. Obviously, Canadians are buying some vehicles that are manufactured in Canada, but the primary destination for Canadian-made vehicles is currently not Canada; it is elsewhere.
The auto strategy has a really good three-part approach to build up and defend the sector.
First, it really focuses on new investment. It repositions the strategic response fund. We now have a $3-billion auto-dedicated strategic response fund so that Canada's federal government can partner with others that are making those new investments in their plants.
We know new investments in auto manufacturing, like so many other manufacturing investments, do not create the number of jobs that they used to, but that is okay. They create well-paying spinoff jobs that continue to depend on those excellent auto workers who have been working in the sector for decades, and they build on the existing automotive footprint that is already there.
The $3-billion strategic response fund dedicated to the auto sector, which is part of our auto strategy, is a key part of the work that is going to help us usher in this fifth era of automobile production in Canada, but it is also building on a recent track record of investment. The is in active discussions with a number of companies to attract more investment. I will note that the Conservative motion did not mention some of the recent investments that have been announced in Windsor and St. Thomas. There are recent investments being made right now by Ford in Oakville to retool its plant. There are investments that have allowed Toyota, for instance, in Cambridge and Woodstock to manufacture only RAV4 hybrids, which indicates the evolution of consumer tastes.
New investment is fundamental to economic growth. New investment is what this auto strategy delivers. New investment is the first part of our auto strategy.
The second part of our auto strategy relates to electrification and sustainability. There are a number of elements, and I want to go through them in turn.
First, my colleague from mentioned the electric vehicle availability standard. We have decided, in consultation with the sector, to remove that and go to a tailpipe emission standard. I was disappointed by my colleague's response to my question, because the motion implies that the auto strategy, in their words, does not need to be fixed by abandoning that policy, which is very key to our approach. I think there is quite a fundamental difference.
I continue to be disappointed. I have been in the House now for nine months. I still have not heard an idea for fighting climate change from the other side that finds traction with the other side.
The really important thing about the electrification and sustainability aspects of this policy is that they are intimately connected to that fifth era. I referred to the third era, in which Japanese automakers were bringing the kinds of vehicles that consumers wanted with the kinds of production standards that were not yet known to people in Canada. The policy-makers of that time made a brave choice in embracing that, despite the political fallout, despite the prospect that it might be alienating to some people currently in the sector and despite the fact that it might alienate some sense of national identity, because our national identity around automotive production was so tied to American automaking.
Those choices by those policy-makers decades ago had the benefit of attracting automakers that are now responsible for almost three-quarters of the automotive production in Canada this year. It was those choices to invite new investment and a new way of doing things that have set us up to be at the place where we are now, still manufacturing automobiles by the hundreds of thousands, even despite the tremendous trade threats.
The national electricity strategy, which is under our auto strategy, embraces where people are going. I would note that it involves potential rebates, not for companies, but for consumers. It is the consumers who will be benefiting from these rebates. They will be buying vehicles, often with Canadian-made parts. It also involves rebates to manufacturers, whom we are actively courting, for setting up new manufacturing facilities here in Canada. These are rebates that follow on from a policy that is embraced by such automaking giants as Korea, Japan and Mexico, all of which have EV rebates and manufacture EVs. This is part of the movement where Canadians are going and where the sector is going.
There are two other key parts. I mentioned the tailpipe emissions standard. Right now, the U.S. administration is considering measures that would completely undermine the current tailpipe emissions standard-setting authority that exists in the United States, so there is a major question for Canada. As we look at this next generation of automaking, which is going to be electric, in line with evolving consumer standards and consumer tastes and in line with the climate priorities that we all embrace, where are we going? What kinds of standards do we want? What kinds of environmental standards do we want?
This new auto strategy embraces the use of tailpipe emissions standards, which have been so effective. Canada has, historically, copied the Californian standards, and Californian standards are what helped drive the manufacturing footprint of North America and the world to be more sustainable. We are now saying that tailpipe emissions standards work, they have the effect of reducing our emissions and they have the effect of driving, in a way that is useful and collaborative with the automakers, the kinds of efficiencies and climate change-reducing measures we need.
I was quite disappointed to hear, and it was news to me, that the opposition does not embrace those tailpipe emissions standards in the auto strategy. I welcome what their suggestion would be on that.
I also want to refer to the charging infrastructure that was included in this announcement. There is over $1 billion for that. We know that in rural Canada and in cold-weather places throughout Canada, there is a desire for more charging infrastructure. We know that in cities, like those in my riding of Taiaiako'n—Parkdale—High Park, multi-unit residential buildings that have scarcely available street parking need more electric charging. This strategy will unlock the massive Canadian sector that is ready and primed, including companies like Parkland, which is in the more conventional energy space to embrace the electric future by providing investments that do not, in this case, benefit just southern Ontario, but spread across Canada.
This kind of investment is what consumers are looking for. They are looking for that help to reduce their range anxiety. They are looking for that little prime that helps them decide, “Yes, I want that electric vehicle, which is better for the planet, is great for driving and can get me from to place to place.” They want the reassurance that they can, in fact, get from place to place with a bit of support for charging along the way. This investment and the announcement of a national electricity strategy are key to that.
Again, the fifth era of automobile making in Canada is about the plants and the parts, but it is also about the software. It is about the electricity infrastructure that we need to build from coast to coast, which will actually make Canada's auto sector spread further and create economic benefit, not just in southern Ontario, but across Canada.
That is the second part of the strategy.
The third part of the strategy is an important set of supports for workers. My colleague, the , has referred to the important role of EI eligibility for those workers who have been laid off and making sure that it is available quickly. The strategy also includes $570 million for up to 66,000 workers to engage in work sharing. These are the kinds of supports we need if we are all in it together.
Underlying this three-part strategy of investment, electricity sustainability and a focus on the workers, whom I will say a bit more about at the end of my speech, is the trade context. I was a bit disappointed that the motion made no mention of the trade context. We have had hundreds of questions from the official opposition about the auto strategy or related to auto policy, either here or in committee, yet there is almost never a mention of the trade context that has caused us to be in this situation to begin with.
I would invite the opposition members to join us in condemning the illegal and unjustified tariffs in any intervention they make, as I am doing right now, so that we can be unified and press back, as, indeed, automaking areas of the United States are doing against the illegal and unjustified tariffs, to indicate that we are all in this together. If we do that, I think we are more likely to get a trade result that will be better for Canada.
Luckily, we do not need just words. We actually have policies that help reinforce our trade position, including the strengthening of the remission framework in the auto strategy. Basically, if we build it here, we can import more cars here for sale tariff-free. That is the basic sketch of the trade remission strategy. We think it works and it will have the effect of reducing some of the concerns the official opposition has.
In the spirit of cross-partisanship of recent days, I want to refer to a couple of things. I had the privilege of being at the Toyota plant with the rollout of the new RAV4 hybrid 2026 edition in Woodstock. I was joined by my friends from , and . We heard about the plant, the team members and the quality of that plant. It is a plant that has been recognized by JD Power, and by Toyota internally, as being a top-in-the-world plant. It is a company that has never had a layoff in its 40 years of presence in Canada. In that moment, the members I referred to and I were aligned. It was a proud moment for Canada and southern Ontario. It was a sign of what can be done.
It was also a sign of the future of this sector, because, indeed, Toyota has the potential down the road to have an electric vehicle platform made at the Woodstock plant. It is manufacturing only hybrids there, going from solely an internal combustion engine to a hybrid vehicle option now. This has the benefit of going where Canadians are going, where manufacturing is going and where consumers are going.
I have not accompanied my colleagues, but I know the member for appreciates the presence of the NextStar plant. I know my colleague from appreciates the presence of the PowerCo plant and the government investments there. Maybe they cannot say they support these government investments in these jobs, but we know they appreciate the jobs there. We know those communities are benefiting. We know that when the mayor of St. Thomas says no one has seen him stop smiling, it is because he has the sense that the direction we are going toward in attracting investment, building on the workforce we have and embracing the electrification sustainability future that we, the planet and consumers want and need is good for his community.
I invite my colleagues opposite to reflect on the prospect of how these measures will benefit their communities. This strategy, which focuses on investment, electrification sustainability and the workers, is part of a fifth era of automaking in Canada. It is one in which we are still deeply connected to the United States, but we have to grow our interdependence to attract new investments from other countries and spread that investment across Canada. It is one that recognizes that we are connected, but that by taking these measures, we can be more sovereign.
It is a set of bold choices, and I urge the opposition and all Canadians to look at the benefits of this strategy. For those reasons, I will be opposing this motion.
:
Madam Speaker, today we are debating a motion on this Conservative opposition day. On Tuesday, we also had another Conservative opposition day.
I wanted to mention this because on Tuesday, when I saw the topic of the opposition day, I thought that for the first time, the Conservatives had chosen a topic that had nothing to do with promoting oil or abandoning the fight against climate change. It seems that was too good to last because they are back at it already. Today's motion is pretty much telling us they do not want electric vehicles, and that these vehicles are the worst thing that could happen to our country.
I will confess to my Conservative colleagues right away that I have an electric vehicle. In fact, I have two, because my partner has an electric vehicle as well. If that makes me the devil, then so be it. For me, electric vehicles provide an opportunity to use less gas and to reduce greenhouse gas emissions, especially because as members of parliament, we do a lot of driving in the course of the year. Obviously, I think my choice contributes to lower greenhouse gas emissions. However, I do not mean to make those who have made a different choice feel guilty. I do understand that we all have different personal circumstances.
That said, I would like to discuss this motion in more detail. To put it mildly, the motion before us contains a number of half-truths.
Before I go any further, I would like to say I will be sharing my time with the member for .
The point being made at the beginning of the motion is that over 5,000 jobs have been lost since the came to office. Perhaps we can put that into perspective.
First, there is the implication that the 5,000 jobs lost were lost because of electric vehicles. However, we are fully aware that job losses in Canada's auto sector are due to American tariff policies because Americans want these jobs to move to the U.S. The losses have nothing to do with any policies on the electrification of transportation. Let us be clear about that and not make up stuff.
Second, when it comes to jobs, there is space to reflect and ask ourselves whether the electrification of transportation contributes to job creation and whether there have been such opportunities. In any case, in Quebec, we have expertise in this field. An Ernst & Young report released in 2025 states that Canada's electric vehicle industry has created over 130,000 jobs over the past 10 years. I think 130,000 jobs is a good deal all around.
I think it would be a good idea to support this sector. Over the past year, I have met with many representatives from organizations in the field of transportation electrification. They had serious concerns about the government's Conservative-inspired policies and its backtracking on issues related to the fight against climate change and transportation electrification. They even told me that they were worried about the future of the electrification industry in this country. They saw that the signals the government was sending were dangerous for the industry's long-term prospects in this country. I think we should keep that in mind.
Point (iii) of the Conservative motion before us states that “the Prime Minister has introduced an auto strategy that subsidizes electric vehicles made in foreign countries”. It is important to understand that the policy that has been implemented is not aimed at favouring vehicles manufactured abroad; rather, it is aimed at encouraging manufacturers to sell electric vehicles and subsidizing these vehicles. The policy specifies that only products imported from countries where Canada has a free trade agreement are eligible for the $5,000 subsidy.
I do not understand why the Conservatives are saying that Canada is helping the U.S. This policy seems more like a challenge to the free trade agreement with the U.S. In my opinion, far from being pro-American, this policy actually states that, if we do not reach a free trade agreement, American-made vehicles might no longer be eligible for this subsidy, so the U.S. would have every interest in negotiating.
There is one more treat for Canadian manufacturers. Canadian manufacturers are not even subject to the $50,000 cap on the vehicle value. I feel like I am promoting the program, but I must say that the government does do good things once in a while, though it does not go as far as we would like. In fact, it often tries to have it both ways: following pro-oil policies while doing a little bit for transportation electrification, just enough to keep the sector from starving.
That said, I would like to talk about another point in today's Conservative motion. Point (iv) states that “the Prime Minister's plan now requires Canadian workers to pay taxes that subsidize foreign-made vehicles they can't afford”. According to the conditions for obtaining the $5,000 subsidy, the vehicle must be worth $50,000 or less. Is that more than consumers can afford?
Of course, $50,000 is a substantial amount. However, we see that the average selling price of vehicles in Canada was $63,400 in 2025, so this is below the average price of vehicles. If people are buying vehicles at an average price of $63,000, how can we say that $50,000 is too expensive for the average person? There is something a little contradictory about what the Conservatives are putting forward. I am not saying that everyone can afford to buy a $60,000 or $50,000 car, but it is precisely vehicles that cost less than $50,000 that are eligible for the subsidy. Cars that cost $25,000, $30,000 and $40,000 will be eligible.
With this in mind, we hope that Canada will work to ensure that less expensive vehicles, including those from the EU, will eventually be available here. That is not the case, currently, and it is one of the things we find problematic. Electric vehicles obviously need to be affordable so that ordinary people can afford to buy them. To achieve this, local manufacturers need to be encouraged to produce these vehicles. At this point, there seems to be some resistance, and unfortunately, that seems to be the case with Honda, for one, which has a plant in Canada. Obviously, it is sad to see this manufacturer back down when it would be in its best interest to look to the future, especially since it sells so many Honda Civics. I do not think any other car was as popular in Quebec when I was growing up.
Meanwhile, in Quebec, the electrification market is taking off. Everyone knows that Quebec has a robust market for electrification. Quebeckers love electric cars. Honda would do well to take a greater interest in this market, since electrification is so popular in Quebec.
In point (c) of the motion, the Conservatives state that the government should use its “existing authority to reduce the amount of tax withheld on severance payments issued to workers at the GM CAMI facility in Ingersoll”.
That facility is probably based in Ontario and has experienced significant job losses. What does that mean, once again? It means that the Conservative motion is centred on Ontario's auto industry and on oil interests. It also shows a complete lack of sensitivity toward Quebec businesses in the manufacturing sector, particularly those that have also suffered job losses. Consider, for example, the folks at Paccar in Sainte-Thérèse, where 700 jobs were lost. Why did the Conservatives not include the workers at Paccar in their motion? It is probably because Quebec is the least of their concerns.
What we notice after reading the motion before the House is that it seeks to completely detract from what is coming. Electrification is being framed as some kind of trend that we need to back away from. We are being told that the world has changed and that we are in a different place now. Unfortunately, all too often, it is the the Liberals taking that position. When we talk about people, we mean real people, not just the ones south of the border, in the Trump administration, a temporary United States government. When we look at the numbers worldwide, what do we see? We see that EVs currently account for 20% to 25% of the global market share. In China, the percentage is over 50%. In Norway, it is 88%. That reflects an increase in sales of nearly 20% last year, in 2025.
Electrification has a future; oil, not so much.
:
Madam Speaker, I would like to start off by sending my deepest condolences and prayers to everyone in Tumbler Ridge. What we saw and what we heard are heartbreaking stories. As a father, I mourn with them. As Canadians, we all stand with the community, and we are sending our prayers to the first responders, the victims and their families. May God bless them all during this challenging time. Canadians from all areas of our country are standing with them.
I will now shift to the issue at hand, which affects my riding quite a bit. Oxford County, usually known as the dairy capital of Canada, has a lot of farmers and a lot of agriculture. We also have a huge footprint when it comes to the auto sector. Members of the government have visited us recently as well. We were just celebrating a successful milestone in Woodstock at the Toyota plant, which started production of the new generation of RAV4s. I visited the plant and spoke to the workers who are producing the amazing RAV4s. Every 30 seconds, a new vehicle pops off the assembly line.
That is possible only because of the hard work, dedication and commitment of the people who make it happen. The workers in the auto industry are some of the best in the world. In my riding and in Windsor, Oshawa, Brampton and Quebec, there is a huge footprint of the amazing folks who are leading the way when it comes to manufacturing.
We are seeing an attack on the Canadian auto industry, and we are feeling it coming from within sometimes, in some of the policies coming from the current government. The government has been talking a very big game when it comes to the auto sector, with a lot of photo ops, a lot of fancy summits and a lot of talk.
However, the rhetoric is not matching the reality, and for my riding, this is having serious consequences, and not just with the job losses. I look at what the auto workers and the industry do for us. They are out in the community, and they are giving back to charities. They are usually the first ones to support events like Coldest Night of the Year, which is a national charity that focuses on people who are homeless. They give back when they can. They come together as one strong community. The industry and the workers are feeling betrayed by the government now.
Looking at the 's record, let's look back at the last year. We have lost 5,000 jobs in the industry: direct jobs in Brampton, Ingersoll and Oshawa, and at Paccar in Quebec. There are also tens of thousands of indirect jobs, the spinoff jobs, that operate because of these manufacturing jobs.
Under the current government, under the Liberals' watch and under their failed leadership, auto production has been cut by half. In 2015, over two million cars were made in Canada; now it is a little over a million cars. We are now under attack when it comes to the auto industry. The government has had the opportunity to stand up for our workers, to show solidarity and to fight against the unjustified tariffs that are affecting our community, but it has not. The Liberals are not showing any leadership.
When the Liberals announced the new strategy, workers in my riding did not back it up. I have been getting calls and emails to my office. People are asking why the government is subsidizing, using their tax dollars to fund, American-made EVs. We should be bringing that money here to Canada, especially when Donald Trump is putting tariffs on Canadian-made autos. The Liberals talked about standing up to Donald Trump; we saw the campaign about elbows up. When it comes to issues like this, that is missing. Now the Liberals are repackaging their EV mandate with a different word and different packaging to make it look like it is new and exciting, but it is the same stuff that will have the same consequences on our economy.
The EV mandates were not supported by the manufacturers here in Canada. Brian Kingston and other leaders opposed them. They said that the Liberals did not know what they were talking about and that they had doubled down on their failed experiments. What did that do? It made us uncompetitive and brought instability to our industry, which in return meant job losses. That is why we proposed scrapping the EV mandates a long time ago. We have been calling for that for over a year.
We should be increasing demand for production in our country. We have the best, hardest-working workers. They want to get to work. They want to roll up their sleeves and build Canada. Instead of taking the GST off Canadian-made vehicles, which would incentivize our local economy because on a $50,000 vehicle it would give Canadians a $2,500 saving, the Liberals are going to ship the money down south.
Canadians do not want their tax dollars going into luxury vehicles they cannot afford, especially during an affordability crisis, when that money could be spent on boosting our local economy and making sure our workers get the jobs they need so they can put food on the table and would not have to line up at food banks as we have seen in the last bit under the current government. The government is completely out of touch.
Workers in Oxford County called me last week after the plant in Ingersoll laid them off. When they started getting their payouts and saw that more than half of their paycheque was being withheld in taxes, they were shocked. They had no words to explain what that would mean for their family. They do not know how they will pay their mortgage, rent and other bills, or how they will feed their family. They are making changes now for the summer, such as taking their kids out of their sports leagues.
All they wanted was for the government to do the right thing and stand with them, because that is what it claimed it would do. It talks a big game, saying it is with the workers, but when it comes to standing up for them in the House, it does not. Therefore we brought forward a proposal that would, under section 153 of the Income Tax Act, a federally governed system, provide some relief. When our economy is not doing well, I think relief should be there for workers, which would mean they could food on the table and would give them some breathing space and room for relief.
We told the minister we wanted to co-operate in good faith. We said we wanted to work together in collaboration around the table. The Liberals flatly rejected it. They called it “political malpractice”. I can tell members that it is political malpractice to not stand with the workers who dedicate so much to our country. The Liberals have turned their backs on them. They talk a big game and talk rhetoric, but the reality does not match their words.
Therefore we are calling on all sides to work with us in collaboration. Let us get to the table. Let us scrap the EV mandates; no matter how we brand them, they should be gone. We should look at scrapping the subsidies that are going to fund things down south, bring that money back home and put Canadian jobs and Canadian workers first. Let us take the GST off our Canadian-made vehicles. Let us give our workers the relief they need during these challenging times. That is what it means to be Canadian. It is time to stand up and support the auto industry.
:
Madam Speaker, “We are in the middle of a trade war” is what the Liberals say in response to questions Conservatives raise every time there are more layoffs in the auto sector, in the softwood lumber sector, in the steel and in the aluminum sector. They repeat it to justify their failure to get a deal with the Americans on these tariffs.
Let us be very clear about something right at the get-go: The United States started this trade war. It was President Trump who did it. He put unjustified and illegal tariffs on Canadian products. He has done that, which makes the Liberals' position on this legislation completely incomprehensible.
When Donald Trump is tariffing the Canadian economy, and in particular autos, he has said that he wants every single Canadian auto manufacturing job in the United States. That is his stated goal. To do that, he is putting enormous tariffs on Canadian autos. These tariffs are decimating Canada's auto industry. We have seen the closure of two production facilities. Thousands of Canadians who manufactured cars have lost their jobs. These were good, union jobs that allowed people to pay for their families, their mortgages and all of these things.
This is caused by the tariffs. One would think that in the middle of a trade war caused by the Americans, there is no way we would be giving subsidies for American electric vehicles, but we are. It is disgusting.
I spent Tuesday meeting with the Unifor Skilled Trades Council and skilled trades workers. Every single worker I talked to was outraged that the government would send one penny to the United States for an electric vehicle, which is what it is in fact doing with rebates.
Every single American electric vehicle should be ineligible for any kind of rebate. It is insulting that the Liberals are not doing that. They could do it with one stroke of a pen. The likes to do these fancy announcements with a pen. He pretended to get rid of the carbon tax by signing something. We all remember that a while ago. He could actually do it for this. With the stroke of a pen, the Liberals could make sure that American EVs are ineligible for one penny of Canadian tax dollars until the Americans take their illegal and unjustified tariffs off our auto sector, but they do not do it. They are kowtowing to Donald Trump with this policy, and I do not understand why they are doing it.
The Liberals ran an the entire election on elbows up and saying that they could deal with Donald Trump and that they would stand up to Donald Trump, but here they are subsidizing Donald Trump's buy America plan. He wants every single auto in North America to be made in America.
I have looked auto workers in the face and told them about this policy, and they are outraged. The Liberals say that they have had conversations. I challenge any Liberal member to go and sit down with an employee from the shuttered Brampton plant and say to them, “We are sorry you lost your job, but by the way, we will be giving rebates for American-made EVs.” I can say right now that the meeting would not go well, because they are outraged. I am outraged too.
We should not send the Americans a single penny for a single EV until every single illegal, unjustified tariff is taken off Canada and what we produce. The fact that the Liberals will not do it is shameful.
Now, let us talk about something positive we could do for the Canadian auto sector, not the thing the Liberals are doing, which is to hurt it by giving those rebates for American EVs. I have also talked to auto workers about our policy, which is to take the HST off all Canadian-made vehicles, not picking and choosing as the Liberals have done. There is one Canadian EV that may get this subsidy, which is the Dodge Charger. It is a $95,000 electric muscle car. There are not a lot of people buying them. In fact, in 2025, 600 people in Canada bought the Dodge Charger.
Rather than having a program that is going to primarily benefit the United States and other countries, why not have a program to support our auto workers?
This policy to take the HST off all Canadian-produced autos came from auto workers. I know because I met with them, I talked to them, and I asked, “What could we do to come up with a policy that would help each and every one of you to secure your jobs, to actually bring back some production jobs?” This is what they talked about, because over 95% of the vehicles produced in Canada are not EVs.
The 125,000 Canadians who work in the automotive sector in Canada rely on non-EV vehicle production. These niche subsidies that the Liberals are giving to help Donald Trump's buy America program are not helping the auto sector, not even remotely.
This would actually incentivize Canadians to buy vehicles. If we look at taking the 13% HST off a vehicle in Ontario, on a $50,000 vehicle we are looking at around $7,000. We are in a cost of living crisis, and when a lot of Canadians go out shopping, they are looking at the cost of things very intently. If they could buy a Canadian car for $7,000 less than an American car or a Japanese car or any other country's car, they will buy the Canadian vehicle.
That is why it is so incomprehensible that the Liberals will not adopt our policy. It is a policy the auto sector workers want. It is one that will be good for all auto production. It would not send a penny of Canadian tax dollars to Donald Trump and his buy American program, unlike their EV subsidy program, which I will again say is absolutely outrageous and unacceptable when we are in the middle of a trade war with the United States.
I want to talk a little about the strategy. The Liberal EV strategy is to produce a lot more EVs. That is what they say they are going to do. There might be a slight problem with that. Stellantis, in an announcement just this week, has said it is moving away from electric vehicles and moving away from the command economy to the demand economy, because demand is actually for non-EVs. That is Stellantis, one of the largest auto manufacturers in the entire world. They are saying it is actually not time to double down on EVs, because consumer demand is not there.
However, the Liberals are going to double down on it. They are doubling down on giving money to Donald Trump's America and doubling down on a strategy that the automakers are moving away from. It gets worse. Ford just announced today that they took a $1.1-billion loss in the fourth quarter of 2025. They lose $27,000 for every EV they make. They have also said they are going to reorient and move towards consumer demand, yet the Liberals are going in the opposite direction.
It does not make sense. We need to allow market conditions to determine the kinds of vehicles that people are going to buy, like the hybrid RAV4 that my colleague from talked about. Why is that not eligible for these subsidies? Why are the Liberals picking and choosing winners? This person is a winner; this vehicle is a winner. Elon Musk's Tesla is a winner, but Canadian manufactured vehicles are not.
There is a very simple thing that could happen in this Parliament. Number one, the government could change this legislation so that not a single penny of Canadian dollars will go to subsidize vehicles made in Donald Trump's America. It is very simple, and every single Canadian would support this.
Number two, the government could take the HST off Canadian-made vehicles to support the 125,000 men and women who work in the automotive supply chain in Canada, 95% of whom make non-electric vehicles. It would spur demand. It might actually bring back some jobs. I do not know why the government is not doing this. I do not know why the government would ever consider sending a penny of Canadian dollars to vehicles made in the United States when Donald Trump has declared a trade war on Canada. The Liberals should apologize to Canadians for that.
:
Madam Speaker, it is always an honour to stand in this place to represent the amazing folks of Essex. As always, I want to thank my Lord and Saviour, Jesus Christ, without whom this is not possible.
On behalf of the folks of Essex, yesterday was a really touching day here in the House, a moment of solidarity and thoughts and prayers for the Tumbler Ridge families, victims, survivors and the ones that probably hit me the most, the first responders and the thought of what they are waking up to today and tomorrow and the weeks, months and years ahead. As a first responder myself, I know it is a long journey, and I hope they know there is always somebody to talk to. There is always support. I am thinking of and praying for them.
I want to, first and foremost, thank my colleague from . He really did encapsulate so much of what my speech is about. I have had the opportunity to live right next to the busiest international border crossing in North America, which will be opened, the Gordie Howe International Bridge. For six and a half years, I have had the opportunity to be a co-chair of the Conservative auto caucus. I have met with dozens and dozens of manufacturers across the country, but specifically in the Windsor-Essex region. These manufacturers have invested enormous amounts of money to create jobs and to create a good, strong tax base for our region. The part that frustrates me the most, probably, is that these are the folks who invest the money and what they end up with is that the goalposts move.
A decade ago, Canada was building about 2.3 million vehicles per year. We are now at about 1.2 million per year. These folks put all the investment into their EVs. I am talking about the mould-makers and the tool shops, the ones that had to retool because the government, the Liberal government, told them that this will be the mandate. Now they have done all that investment, and what do they have? They are told that we are going to go back to fuel engines because the government realized that the consumer is not ready, that the vast majority of consumers are not ready to purchase these EVs. At the same time, it is going to move the goalposts again, so that even though they have made all the investments, the government has given them no support to cover those costs and is now going to talk about a new fuel standard.
I just got back, about a month ago, from a trip with the Canada-United States Inter-Parliamentary Group to Mexico. I met with some very influential people down in Mexico. It was a great trip. I also met with the senate of Mexico. I heard about how much further along they are in their talks with the United States, specifically on the automotive sector, than we are. The government, quite frankly, is nowhere near the finish line on that front.
What does that really mean? It means more Canadian jobs lost. Windsor-Essex specifically has 24,000 workers, indirectly and directly, supported by our auto industry. I am sure many of them wake up in the morning and wonder if the third shift at Stellantis is actually going to go down to a second shift again.
I have had an opportunity for so many years now to meet with Brian Kingston, David Adams and Huw Williams. They are from the Canadian Vehicle Manufacturers' Association and the global automotive manufacturers association. I have met with Canadian mould-makers. They have been telling me for six and a half years that industry does not drive demand, that consumers drive demand, so get rid of the EV mandates. We have been screaming from the top of the hills to the government to please get rid of the mandates. It finally listened and got rid of the EV mandates. What it did instead was to again move the goalposts. Everybody now gets to start from ground zero once again.
Next week, I will be at the Toronto Auto Show, having round tables with industry leaders once again. I can only imagine what that conversation is going to look like. However, most of all, it is about the workers. It has only ever been about the workers. My father always said that we can have the greatest widget in the world, but we will not build one and we will not sell one without the people.
Windsor—Essex has some of the finest skilled trades workers in the world, the greatest tool and die makers and machinists in the world. The infrastructure is already there, but the government continues to tie the hands of these tier twos, tier threes and the OEMs, who are just trying to put forward good-paying jobs to allow food on the tables of Canadians across this country.
I have met with them on the shop floors. I can promise members that the workers in Windsor—Essex are not very excited when they wake up early in the morning to go to work and find out that, at the end of every week or biweekly off their paycheques, their money will be going to subsidize a job in the United States or in other foreign countries. I can only imagine how incredibly upset they must be. I can only imagine what the conversation on the shop floor is. Can members imagine waking up in the morning and going to work knowing that, at the end of the year, our taxpayer dollars, the ones that we literally worked so hard for and gave to the government, were going to another country, another company, so that they could literally eat your lunch? It is absolutely nonsensical, and it is, quite frankly, disgusting.
These workers have built our industry. They are the same ones, such as those in Unifor, who sponsor so many hockey teams, soccer teams and so many events. We see them everywhere. These are the ones who are truthfully community-minded, and they equally do not deserve to be slapped in the face. That is why Conservatives are always going to put Canadian workers and auto manufacturers first.
Conservatives are not about subsidizing other countries. What we are really about is making life more affordable for Canadians, which is why this bill will introduce the removal of HST on Canadian-built vehicles. What does that mean? It means about $2,500 on a $50,000 vehicle. By the way, the $50,000 vehicles are somewhat out of reach, almost a luxury vehicle for Canadians today, because of the price of food and consumables. I am very proud that my colleagues and I have introduced this piece of legislation, which would make life more affordable.
To conclude, the government told industry, “Here's the goalposts and here's what you're going to do”, and industry did that. Now the government is saying, “Oh, by the way, we know you made huge investments. We're not going to give you any support for those investments, but we just changed the goalposts again.” It is no wonder that Canadian companies are leaving this country in droves when the government makes it so unaffordable to do business in Canada.
Conservatives are here to ensure that we are part of the solution, not part of the problem.
:
Mr. Speaker, let me start by offering my condolences and prayers to the residents of Tumbler Ridge, B.C., for the horrific things that have taken place over the last couple of days. I echo what the , the and others have expressed in regard to our love and prayers going to the community.
I want to expand on a bit more of a holistic approach to the automobile industry, which has been such a vital part of our manufacturing industry in Canada for many years. In fact, we can go back to Lester Pearson in 1965 and the signing of the auto pact agreement. This is an agreement I have talked about in the past when we were, I believe, the third party and possibly again once we were in government. It was a significant agreement at the time.
Much as Lester Pearson was a visionary looking at the automobile industry back in the sixties, we have a today who has developed a Canada-strong automobile strategy so that we will have a healthy automobile industry in Canada into the future.
Reflecting back to the past, it was not that long ago that I was pumping gas at a Turbo. Looking back to the seventies and the automobile industry back then, there was GM, Ford, Chrysler and American Motors. That was it, the big four in Canada. Those were perceived as the automobile industry.
We know American Motors was consumed by Chrysler, and Chrysler became Stellantis. What we have today are Honda, Toyota, Stellantis, GM and Ford. I think most Canadians would be very surprised about which cars are actually being manufactured in Canada today. Back in the seventies, people talked about not buying imports. Well, Toyota and Honda are actually producing far more cars here in Canada than the other manufacturers combined. It is not to take away anything from the other three, GM and Stellantis and Ford, but the automobile industry has changed over the years.
Today we have a motion from the Conservatives as if they actually know what to do. In reality, members can look at the time when they were in government. They want to isolate the province of Ontario. One of the greatest hits to the industry was when the sat around in the Conservative caucus when the Ontario manufacturing industry was being decimated.
Listen to what the Conservatives talk about. They ask, how can we give an EV subsidy to American manufacturers? Seriously, do they not understand that we have an integrated automobile industry? Many of the parts used in those EVs across the border are actually manufactured here in Canada and are then brought to the United States and put into many of those electric vehicles. We have an integrated system. For the life of me, I believe the Conservatives just truly do not understand that.
The total number of cars manufactured in Canada today is just over one million; I think it is about 1.3 million or so. In looking at the consumption of vehicles, what Canadians are buying, we see that approximately 10% of Canadians are buying Canadian-made cars. However, there is a great deal of Canadian content in cars being purchased that come in from the United States. I am not going to defend Donald Trump, the United States or their political objectives on the automobile industry, far from that.
Whether it is the or any Liberal member of Parliament, we are very much concerned about the future of the industry, and the workers and their families. We need to see more empathy toward those families and the idea of generational workers into the future. If those workers have sons or daughters who they want to continue on in that industry, we better start thinking about the future and the direction that the industry as a whole is moving toward.
We are going to see substantial increases in the production, directly and indirectly, of EVs. The Conservatives are closing their eyes and ignoring it, as if we do not need to worry about it. Much like Lester Pearson recognized the issue back in 1965, how important it was that we have an auto pact agreement, which literally provided hundreds of thousands of good middle-class jobs and helped build the country we have today, we now have a who is saying we cannot just stand by and do nothing, especially when there is an American president who has been unpredictable. We do not know what the president is going to say tomorrow.
We have to look at ways to expand our economy that go beyond the Canada-U.S.A. border. That is what the , the ministers and members of the Liberal caucus believe we need to do. That is why we have a Prime Minister who has been travelling abroad, bringing literally billions of dollars of investment into Canada and looking at ways we can continue to export. There is no reason we cannot export more of our automobiles being produced in Canada beyond the United States. Today, well over 90% go into the United States.
After all, we should all take pride in the quality of the workforce in our automobile industry. The Dodge Charger was recognized in Detroit as the car of the year. I believe that is because of the employees and the company working as a team to produce that car of the year. The Toyota RAV4 is a vehicle that has been widely supported here in Canada and abroad. These vehicles, whether those two or any others being produced in Canada, are recognized for the quality of the product. The and this government have said we need to not only protect but also look at ways we can expand the automotive industry here in Canada. That is why the whole battery supply chain is so critically important.
Unlike the Conservatives, we do not have our heads in the sand. We realize that electric vehicles and hybrid vehicles will continue to be produced in the future, and we want to be in the game. The Conservatives say no, at a great cost.
We need to look at the reality of what is happening not only in Canada but around the world. We will see that Canada can, in fact, be a world leader. We need to be able to move forward. What if we followed the Conservatives? I can imagine the debates during the 1920s and so forth, with Conservatives saying, “You know what? Those wagon wheels create a lot of jobs. We want to keep the wagons flowing.” In technology, things change. Government needs to change. That is why the first question I asked the opposition on this issue was about the Conservative Party's strategy on the future of the automobile industry. Where is it? Nothing at all has been presented to Canadians.
I look at what the Conservatives say about EVs here in the chamber. They say the government is bad because it is providing a grant to encourage people to acquire an EV. Well, members know there are provincial governments across this land that have recognized the value of encouraging their citizens to purchase electric vehicles, and they also have provided financial incentives to do that. We know there are provincial governments that actually invest in the infrastructure to support EVs.
The best I can tell is that there is only one political entity in the country, known across Canada, that says absolutely no to electric vehicles and the promotion of them, not to mention the infrastructure buildup here in Canada. It is the Conservative Party of Canada, the far-right Conservative Party of Canada. That is the only entity that does not have any real strategy to deal with our automobile industry.
The Conservatives want to give the impression that they care about the employees. They take these flash issues and try to build up anger toward the government when they themselves do not have a strategy that takes the industry into the future. The Government of Canada is very much on the front line, working with people and workers and consulting with families and companies, to ensure not only that we have a strategy but that it will be a strategy that is going to work and build upon the successes we have had in the past.
The Conservatives are completely blank, but just the far-right Conservatives here that I see. When I say that, some members ask why I would say “the far right”. They are extreme. We can take a look. There are Progressive Conservative premiers who will support the EV industry. Even the Alberta United Conservatives have supported, if not directly then indirectly, the expansion of EV chargers. The point is that whether they are Progressive Conservatives, New Democrats, Greens, the Bloc party or the Liberal Party, all the main parties that most Canadians would be aware of, they all recognize that things change and that we need to adapt and develop strategies around how we build into the future. The only other party is the Conservative Party.
There were interesting job numbers that were provided to me in regard to just how important the auto and battery plants are. Let us think in terms of the municipalities. We could talk about Windsor, Oakville, Oshawa, Ingersoll, Brampton, Alliston, Woodstock and Cambridge. These are all communities in the province of Ontario, but is not limited to Ontario when we talk about going forward into the future, and even today. I think of my home province of Manitoba, where Winnipeg has New Flyer, as well as the work that Red River College or the University of Manitoba are doing.
An hon. member: Are EVs manufactured in Manitoba?
Hon. Kevin Lamoureux: Mr. Speaker, there is EV manufacturing in Manitoba. The best buses in the world are being manufactured in my home city of Winnipeg, and they are EV buses. Imagine the shell shock on the other side. The silence is deafening when reality finally sinks in.
Even though we have emphasized a great deal about Ontario today, we are really talking about an industry that impacts everyone, every region of our country. That is why I stand up today looking at these communities, the broader community of the province of Ontario, specifically, for me today, and indicate that we care about what is taking place. Even as a Prairies member of Parliament, I am being sensitive to the jobs that are being impacted, as I know every Liberal member of Parliament is.
We have talked about Toyota in Woodstock, which is 2,500 jobs. That is where the RAV4 is produced. I think someone earlier said that every minute or every 30 seconds, a new car comes off the line. In Cambridge there are well over 5,000 jobs, close to 6,000. Let us take a look at what is happening in Alliston at Honda; again, there are thousands of jobs. Those two companies, as I indicated earlier, make up well over 50% of automobile manufacturing here in Canada. Let us take a look at the numbers. I would never have thought this in the eighties and nineties. They stepped up to the plate.
There is talk of a RAV4 hybrid being developed, and it could actually be done here in Canada, at least in some sort of limited way, possibly. I would recognize and ask Toyota. We should maybe make a resolution to support some of the industries that are so progressive. The RAV4 is a fantastic vehicle, and I hope to see a hybrid.
However, there is Stellantis, whether it is in Brampton or Windsor, with genuine concerns. There is General Motors in Ingersoll, Oshawa and St. Catharines. There is Ford. We are very much concerned. We want Ford to do better and to grow.
When we talk about the supply chain, there is NextStar. Someone told me earlier today that NextStar has reached one million batteries being manufactured. Many of the initiatives we have taken as a government to support the automobile industry and add on the EV industry have actually been supported with public dollars by the Ontario government. Doug Ford, by the way, is a progressive Conservative.
At the end of the day, the government will work with Canadians, work with industry stakeholders, families and workers, to ensure that we have a strong and healthy automobile industry all Canadians can be proud of. That means there will be some changes, but we will persevere. What Lester Pearson did for the Auto Pact, the will do for the future of the Canadian automobile industry, and we will see prosperity continue.
:
Mr. Speaker, it is always an honour to rise in the House and speak for the decent and hard-working people of Windsor West. On their behalf, I would like to extend my heartfelt condolences to the good people of Tumbler Ridge as they go through the most challenging time of their lives.
Windsor is a border city. For us, when trade works, we work. When a trade war starts, Windsor is on the front lines of that war, but the choices being made here in Ottawa are having a serious impact at home.
It is important to explain what Windsor actually means to this country. Windsor is the automotive capital of Canada. The Windsor-Detroit corridor is the linchpin of our trading relationship, where roughly one-third of all Canada-U.S. trade crosses the border every single day, which amounts to over half a billion dollars every day.
Windsor anchors one of the most integrated supply chains in the world. Auto parts made in Canada cross back and forth to the U.S. several times before the final assembly of a vehicle. When tariffs are imposed and uncertainty grows, the impact is immediate. A delay in Windsor can idle a plant in Michigan. A slowdown in Michigan can shut down a supplier in Ontario. That is why getting our auto policy right is essential if we want to put Canadian workers first.
When I talk to workers back home, they are very clear about where our trouble started. They, too, blame it on the tariffs that President Trump imposed on us. Like us, the people of Windsor believe the tariffs are unjustified. They believe they were meant to target our manufacturing sector and our auto sector, and they hit Canadian auto workers directly. Just yesterday, even the United States Congress said those tariffs against Canada are unjustified.
However, more importantly, there is anxiety and frustration on our side of the border, because of how the government has responded to the trade war so far. Instead of securing protections for Canadian manufacturing and Canadian workers, the government announced billions of dollars in EV subsidies. On the surface, that sounds supportive, but when workers look closely, they see where most of that money is going. A significant portion is going to vehicles built in the United States, in Trump's America, and in other foreign jurisdictions. While Trump's tariffs are hurting Canadian workers, Canadian tax dollars are being used to support American production. The workers on the shop floor are shaking their heads at the complete lack of common sense in this policy.
That is not all. The workers in Windsor have a great memory. They remember being promised a trade deal by July 21, 2025. They remember being told that help was coming, but that deal never arrived. There was no agreement, no certainty and no protection. Many in Windsor are feeling disappointed. They are caught between unfair Trump tariffs on one side and domestic policies that fail to anchor production and secure good-paying jobs on the other. People understand that trade negotiations are complex, but they also understand when promises are not kept.
This issue goes well beyond the big three automotive companies. Today, we are producing half the cars that we did in 2016, going from 2.3 million cars a year to 1.2 million cars a year. All of that decline took place under the Liberal-NDP rule.
In Windsor and across southwestern Ontario, parts manufacturers and tool and die shops are under real threat. These are smaller businesses, often family-run, that are highly-skilled and absolutely essential to the auto supply chain. However, when assembly lines slow down, the orders for these smaller companies disappear, and when uncertainty drags on, layoffs begin quietly. I can tell the House that this is happening on both sides of the border, unfortunately. I am hearing from tool and die shops that have already let workers go. Parts suppliers are cutting shifts. This is how economic damage spreads. It is out of sight from Ottawa, but deeply felt in cities like Windsor, London, Hamilton, Brampton, Oshawa and Quebec.
There is another concern that comes up over and over again, which is that capital investment is leaving Canada. Banks have published studies on this, by the way. Other Canadian companies besides Brookfield Asset Management are choosing to invest in Trump's America, not because Canadian workers lack skills and not because our plants lack capacity. I am being told by manufacturers that the rules south of the border are clearer, that the regulators there are helpful instead of hindering, that the costs feel lower and that the path to profitability feels more stable. Some of these folks have told me that the red tape on our side of the border is choking entrepreneurs. When will the government address this issue?
I have also had the opportunity to speak with a few workers, who have talked to me about the EV policy. They told me the production for the EV Dodge Charger model that was just referred to has been paused, yet it won awards at the Detroit Auto Show. As of January 2026, the Pacifica plug-in hybrid is also being phased out by Stellantis.
These workers are not debating climate goals; they are asking for clarity. They hear that the EV mandate is gone, but they are not happy about our tax dollars subsidizing cars made in Trump's America. When I mentioned our Conservative proposal for removing the GST on Canadian-made vehicles to support our manufacturing jobs, members can imagine their answer. They are all for it.
Before I go on, I want to briefly mention the Gordie Howe bridge, which has been under construction for eight years. It was completely approved in 2015, but the Liberal government did not put a shovel in the ground until 2018. The bridge is critical to both Windsor's and Canada's international trade.
We have heard about the comments made by the President and the subsequent conversations he had with the , but the people in Windsor have been waiting and seeing delay after delay. Now they are even more uncertain as to when this bridge will open or even when the toll rates will be announced. Incredibly enough, the Liberal government and its Crown corporation have not come up with toll rates after starting the project over eight years ago. It is absolutely incredible. For logistics companies, which plan months ahead while bidding on contracts, the lack of certainty and information on toll rates hurts their ability to compete.
This has to change. The government needs to provide firm timelines on when this bridge will open. People in Windsor and across southwestern Ontario need that information yesterday.
What do people in Windsor really need? The people in my city are reasonable, and they have reasonable expectations. They want their government to defend Canadian jobs, first and foremost, to stop sending our tax dollars to President Trump and to secure a trade deal that protects us and keeps investments in Canada. They are not asking for guarantees; they are asking for honesty and integrity.
This is the picture in Windsor. The unjustified tariffs by President Trump started the damage, the absence of an intelligent Canadian response by the Liberals allowed it to deepen, and workers, along with suppliers and small manufacturers, are paying the price.
Windsor is not the edge of the country, but one of its economic engines, and it is an important one, I might add. If we are serious about putting Canadians first and wanting workers in Windsor to believe their government believes in them, we must be serious about what happens to Windsor and its workers. They are relying on the House to come up with a proper solution so that they and their families have a viable future and their kids can enjoy all of the benefits this great nation has to offer.
:
Mr. Speaker, I understand we are leading 4-0 in the big game today. We are truly team Canada, as we can see from the beautiful jersey right behind me.
Imagine if we could be team Canada when it comes to automotive purchases and production. Imagine the satisfaction someone would have if they drove their new car off the lot knowing that not only did they get a great price for a great automobile so they can do their full-time job as a chauffeur taking their kids to their hockey games, but that every penny from their purchase went to support Canadian workers, to put food on the tables of Canadian families, to buy Canadian steel, Canadian aluminum, Canadian plastic and Canadian-assembled automobiles.
That is the mission. That is how we make our country affordable, safe and strong. We must reindustrialize our country. We must unleash the production of steel, aluminum, plastic, minerals and other production for which we should have a massive natural advantage.
Then and only then, Canadian paycheques would grow. Then and only then, Canada would be affordable and autonomous. Then and only then, would we restore the industrial powerhouse that used to characterize the Canadian economy. We have a plan as Conservatives to bring about that industrial powerhouse and the affordable made-in-Canada vehicles I just described.
It is a plan for quick permits, low-cost energy and low taxes, a plan to make this the biggest and most open economy anywhere in the world in which to produce, to make, to fix, to move, to dig and to deliver for Canadian consumers. We have the resources and the workforce that no other country can match, yet after 10 years of the Liberal government, we have had the worst economic growth in the G7, the worst productivity and the worst investment track record. Five hundred billion dollars of net investment has fled our country for the United States of America, as Liberal taxes and anti-development policies drive investors stampeding out of our country.
Automotive production under the Liberal government has fallen by half, from roughly 2.2 million cars a year to 1.2 million. All of that happened while the present-day Liberal was actually the industry minister. The new government looks an awful lot like the old government.
The Liberal promised that he would be different. Here we are, a year later, and what do we have? There have been grand speeches, announcements and signing ceremonies of unenforceable declarations. It is all an illusion. Look at the results.
He promised to negotiate a win with the U.S. by July 21. There is still no win, still no deal and still no jobs. He promised that we would have the strongest growth in the G7. Our economy is now shrinking, according to Bloomberg. He promised affordable food, but grocery prices are now rising faster in Canada than in any other G7 country. Real GDP in automotive manufacturing fell by 10% in November. He promised auto jobs. He has lost 5,000 of them. In fact, manufacturing is down 37,000 jobs since he took office promising to make Canada strong, and 5,000 of those jobs are in automotive production. We have seen 3,000 job losses in Brampton, where I had the the honour of standing in the rain with the great Unifor workers who were locked out of their facility; 1,200 at the GM CAMI plant; 500 at GM's plant in Oshawa; and 725 at Paccar in Quebec.
We can blame President Trump's unfair tariffs, and we do, but the question is this: What are we doing about what we can control? As the said, and he is right on this point, no one can control what President Trump does or says. I agree with the Prime Minister. What we can control is what we do on this side of the border.
Here is what the 's response is. He wants to take $2.3 billion away from Canadian taxpayers, including Canadian auto workers, and spend it on a subsidy that goes exclusively to foreign-made, especially American-made, cars. While President Trump tariffs our automobile sector, the Liberal Prime Minister subsidizes the American auto sector.
Let us be very clear. Liberals are claiming that somehow the rebates will be used for Canadian automobiles. Here are the facts: In 2023, under the previous Liberal EV rebate program, which was pretty much the same as the one we have now, 99% of the subsidies went to foreign-made EVs: 31% went to the U.S., 25% to China, 19% to Japan, 16% to South Korea and 1% to Canada. Let us be clear: Only 1% of EVs purchased in Canada are made in Canada, and that is after $52 billion of taxpayer subsidies for the EV supply chain. It does not seem to matter how much Liberal governments throw away in handouts and subsidies; they cannot turn those dollars into enough production to satisfy even a tiny fraction of the Canadian marketplace.
Liberals say that is the present, but we should look to the future. That too is an illusion. Here is the reality: EV purchases are in free fall. Between December 2024 and November 2025, the market share of EVs in Canada plummeted almost by half, from 18% to 11%. Canadians are buying vastly fewer electric vehicles. In dollar terms, the sales have decreased in that period of time by 37%. That is absolute free fall. In fact, the reality is that if someone were trying to predict the future, and I do not believe that governments are able to do that, and simply based on the trajectory, it is clear that electric vehicles are not on track at this time to overtake the market. They are not even close.
Our Conservative approach would allow the free market to decide which vehicles get purchased. It lets consumers choose what they want to buy. We know that they will be biased in favour of the lowest price and the highest quality, and those vehicles happen to be, in many cases, Canadian-made internal combustion vehicles. That is the reality, and we have a plan to make sure that the maximum amount of content in those vehicles is made by our Canadian workers. We are going to reindustrialize Canada. We are going to make this into an industrial powerhouse, and we are going to make it possible for someone to buy a car and know it goes to Canadians.
It drives me crazy to think of the laid-off auto worker who is looking at their severance right now and sees 50% is gone in tax, knowing that their tax dollars will subsidize the very American-made vehicles that were made in the country that tariffed him out of a job. He does not have to live like that; we have a plan.
We will unleash Canadian production. We will take the GST off Canadian-made automobiles, saving people $2,500 on a Canadian car. This would include, for example, the Chrysler Pacifica, the Chrysler Grand Caravan, the Dodge Charger, the Toyota RAV4, the Lexus NX, the Honda Civic, the CR-V, numerous Ford products, the Chevy Silverado and many more. We would get rid of the industrial carbon tax on Canadian steel, aluminum and plastic to make cars with Canadian steel. We would get rid of the capital gains tax on reinvestments in Canadian auto plants. We would end the new Liberal fuel tax so that we can move our parts around more quickly and economically, because low-cost energy is the key to reindustrializing our country.
These are solutions. They are positive ideas to make Canada an incredible industrial powerhouse, where patriotic Canadians can save money and save jobs at the same time and where team Canada not only wins out on the ice but wins at the auto dealership, wins on our streets and wins in our factories.
I say, “Canada first and Canada always.”
:
Mr. Speaker, I will be—
Some hon. members: Oh, oh!
Hon. Mark Gerretsen: Mr. Speaker, I am only at the part about sharing my time, and they are already heckling me.
I will be sharing my time today with the member for .
I cannot help but wonder what is going on in the political party over there with its members being so hell-bent on disassociating themselves from the reality of the world we are in and the fact that our car industries are converting, changing and evolving.
I want to propose something to members. I want them to imagine for a second that EVs are already the norm. I want them to pretend for a second that gas vehicles do not exist and that there are only EVs.
I ask members to picture this: Every morning they wake up, their car has been plugged in and it has a full battery. When they drive around, there is no noise, no fumes and no rumbling traffic. The streets and the air are cleaner, and kids walking to school can breathe cleaner air as a result of this.
Members can think about it for a second. Everybody is driving EVs, and there is very little maintenance required. We are not getting oil changes, changing or adjusting timing belts, or dealing with transmission failures. We also have an energy source that is stable and affordable. This is the world we are living in, my imaginary world, for a second.
I now want members to imagine that I am going to pitch why we should transition from EVs to gas vehicles. This is my pitch: For starters, there would be no charging when we wake up in the morning. We might wake up and the car is empty, so we have to find a gas station somewhere to fill it up, where we are pulling a hose out of a gas tank and pumping flammable fuel into our vehicle.
Also, I want members to think about the maintenance involved. Instead of an EV, which has literally no maintenance, we suddenly have a vehicle that has hundreds of moving parts. There is an engine that, thousands of times a minute, is having little miniature explosions in it to drive the engine. This is my pitch to members.
In addition to that, every once in a while, every 5,000 kilometres or 10,000 kilometres, we are going to need to get an oil change. We are going to have to periodically get a new spark plug. We are going to need to have belts, pumps and filters changed. Everything is going to have to be changed. In addition to this, the vehicles are louder and make more noise on our streets. By the way, there is going to be this pipe at the back of the vehicle that spews out toxic gases for all of us to breathe in. This is my pitch to move away from EVs.
There is also the cost argument of the fuel. Rather than that stable, predictable cost of electricity, we are going to have to pay for our fuel based on global prices that are set by global influences. In addition to that, we are going to spend thousands of dollars in repairs and changes. The budgets are going to be completely unpredictable.
My point is that, if I were to stand here to try to pitch to members why we should move away from EVs to gas vehicles, it would be absolutely absurd, yet this is the place we find ourselves in. We find ourselves in a place where we have a political party that, for most measures, used to be fairly progressive as it related to the environment and embracing change and that seems to have only adopted one thing from that former party, and that is the word “Conservative”.
All the Conservatives want to do is conserve and make sure that we cannot evolve or transition at all. There is something called the innovation curve, which is basically a bell curve that will tell us at what point in various different technologies we are currently at. At the beginning of the curve is the 0% to 2% range. People who buy into a new innovation at the bottom of that curve are called innovators. These are the people who have the resources to buy certain technologies because they enjoy it and they like the technologies. They are the innovators.
Next to them, in the 2% to 10% range, are the early adopters. These are the people who do not have quite the same resources the innovators have, but they are still very interested in the technology. They might be motivated from not only an economic perspective, but also a social perspective.
After that, on the innovation curve, we get to the early majority. This is when that new technology has penetrated the market between 10% and 40%. This is when things start to really kick off. The actual chasm point is about 7.5%, which is considered the tipping point. At that point, it is just a matter of going through the innovation curve.
After that, in the range of 40% to 70%, we have the late majority. The late majority are the people who reluctantly buy on, realizing, “Okay, yes, this is going to be more affordable, so I'm going to buy it.” They do not really want the technology, but they do accept that the rest of the world is embracing it.
At the end of that, when we finally get to market penetration of 70% to 100%, there are what are called the laggards. These are the people who would still be using a rotary phone today if they could, but they have to use a touch-tone phone because the world evolved around them and there is no choice. The laggards are the Conservatives. These are the people who absolutely refuse to embrace the technological change.
Right now, one in five cars sold in the world is an electric vehicle. That means that, along the innovation curve, we are currently at 20%, which is well into the early majority. We are well past the tipping point, and we will not come back from this.
Do we want to be at the forefront of what is going on, or do we want to be laggards like the Conservatives? Do we want to just wait until we have absolutely no choice but to embrace the technology the rest of the world has already concluded is the only path forward?
My position on this is that we have the opportunity to be at that forefront. We have the opportunity to have some of that investment happening right in our country, so that we can be outputting that to the rest of the world, exporting it instead of just importing it.
I know that the argument from the Conservatives is going to be that there are very few cars, and only one or two in Canada are EVs. They are going to come up with all these red herrings, like they always do, as though they are trying to somehow conserve, as in the name of their political party, this idea that it is impossible to evolve and it is impossible for things to change. We have the opportunity to be able to do this, to be at the forefront and participate in the change of vehicle that is inevitably coming.
We are well past the tipping point. This is not a matter of if; this is a matter of when. Electric vehicles are soon going to be the norm—
Some hon. members: Oh, oh!
Hon. Mark Gerretsen: Mr. Speaker, I hear the members laughing right now. Whether or not they want to get on board and drive one of those vehicles does not matter because at the end of the day, they will be in one. It may not be tomorrow. It may not be a year from now. It may not be five years from now, but I guarantee that eventually every Conservative will drive one.
I have been driving electric vehicles since 2011. I drive a Ford F-150 Lightning, and I park it here. I have put 112,000 kilometres on it, and I have never once brought it in for servicing. The electromagnetic motors drive the vehicle. I do not have an engine. I do not have fuel. I do not have explosions happening to move the vehicle. This is all the stuff I talked about earlier, and this is the reality.
I really hope that we can get to a point when Conservatives can finally start to realize that the world around them is changing, and whether or not they want to participate in it is quite irrelevant because it is going to change. Our perspective is that we want to be at the forefront of that. We invite Conservatives to join us.
:
Mr. Speaker, it is my pleasure to participate in this debate today.
As we all know, times are changing, and in that uncertain world, the government is focused on what we can control. As part of Canada's new industrial strategy, we are transforming our economy with a diversification of trade partnerships as we work to catalyze growth with massive new levels of investment.
For over 100 years, Canada's automotive industry has underpinned advanced manufacturing, driven innovation and supported hundreds of thousands of well-paying jobs across the country, including in Oakville. It is as important as ever that we take action to maintain and improve Canada's automotive sector. In fact, we have a unique opportunity to do so.
That is why, on February 5, I was proud to join the as he launched a new strategy to transform Canada's automotive industry. Recognizing that the future of the automotive industry is electrified and connected, the government is prioritizing the development of the full value chain for next-generation vehicles. Within five years, EV sales are projected to reach nearly 40% of global car sales. It is important that Canada is among those at the forefront of that evolution.
While repealing the electric vehicle availability standard will allow manufacturers to use new technologies as they respond to consumer preferences to grow domestic demand for EVs, they must become more affordable for working Canadians. That is why the government will launch a five-year, $2.3-billion EV affordability program that will offer purchase or lease incentives up to $5,000 for battery electric and fuel cell EVs, and up to $2,500 for plug-in hybrids with a final transaction value of up to $50,000 on cars made by countries that Canada has free trade agreements with. To support the Canadian automotive industry, this $50,000 cap will not apply to Canadian-made EVs and plug-in hybrids.
The government will also enhance, through the auto strategy, the national EV charging network, through investments of $1.5 billion, including investments in my riding of Oakville West. These will, through the charging and hydrogen refuelling infrastructure initiative, make it convenient for drivers to charge their cars no matter where they are.
To accelerate investments in Canada's automotive manufacturing sector, the government will also allocate $3 billion from the strategic response fund and up to $100 million from the regional tariff response initiative to help the auto industry adapt, grow and diversify. We will also take advantage of the productivity superdeduction and reduce corporate tax rates for zero-emission technology manufacturers to encourage investments in clean technologies and EVs as well as strengthen Canada's automotive remission framework to reward companies that build in Canada.
The government will also establish a comprehensive trade regime that strengthens the auto sector through new partnerships. For example, Canada recently deepened its strategic partnership with the Republic of Korea by signing a memorandum of understanding to strengthen Canadian-Korean industrial collaboration for future mobility. The recently announced new relationship with China aims to drive new Chinese joint venture investment in Canada and allow for a fixed volume of Chinese EV imports into the Canadian market. Although countertariffs on auto imports from the United States will be maintained, the government will continue to advance its auto strategy within an integrated North American automotive industry.
By making strategic investments and solidifying trade partnerships, Canada is positioning itself as a global leader in vehicle electrification, autonomous and self-driving technologies, and the battery supply chains that will power the future of mobility.
I would also like to mention the help we will provide to the auto workers who will build the vehicles amid short-term uncertainty. To protect Canadian auto workers and businesses from immediate pressures while helping bridge them to the future, the government will provide support to employees through a new work-sharing grant, preventing layoffs and supporting worker retention so that businesses can plan for the future. In addition, up to 66,000 workers across Canada, including affected auto workers, will receive employment assistance and re-skilling support as part of a $570-million investment.
These strategic decisions and generational investments aim to build a strong Canadian auto sector, where Canadian workers build the cars of the future. Backed by a world-class workforce, globally recognized parts suppliers and leading-edge research and development, Canada's automotive sector is building the vehicles for today, and it will help build the vehicles of tomorrow.
:
Mr. Speaker, once again, our Conservative colleagues' attitude is not at all constructive, particularly when it comes to the fight against climate change. What people need to understand is that behind their motion lies a desire to do away with almost all of Canada's climate change policies, and they have been somewhat successful in accomplishing that so far.
Their motion covers up the fact that they are simply opposed to the electrification of transportation and electric vehicles. I think they would be better off having the courage to say it outright. For several months, even years, we have been seeing policy proposals that are essentially those of the oil and gas companies. People need to understand that oil and gas companies are strongly opposed to the electrification of transportation because, obviously, it will lead to a reduction in oil consumption in the country.
When it comes to the electrification of transportation in Canada, Quebec is ahead of all the other provinces. More electric vehicles have been sold in Quebec and more charging stations have been installed in Quebec, and there is a reason for that. It is because there is a significant financial advantage to transitioning to the electrification of transportation in Quebec.
From an economic standpoint, Quebeckers are still paying more than $10 billion a year for oil. That is $10 billion that is leaving the province and is therefore no longer in Quebeckers' pockets.
That is in addition to the impact that burning oil and gas has on air quality. When we talk about air quality and the economic impact, obviously, we are talking about billions of dollars in health care costs, but we also need to talk about deaths, premature deaths, that are directly linked to poor air quality. We also need to talk about health conditions, hospitalizations and cardiovascular disease, especially among seniors and people who are at risk. We can solve some of these issues by electrifying transportation, but if we delay electrification, as the Conservatives want to do, we will lose out from an economic standpoint, from an environmental standpoint because of the fight against climate change, from a public health standpoint and from a consumer standpoint.
Consumers' pocketbooks are now captive to the oil and gas companies, the majority of which happen to be owned by U.S. investors. People are talking about Canadian nationalism and Canadian sovereignty, but it is important to keep in mind that over 50% of Canadian oil companies' shareholders are in the U.S. Nearly half of the gas imported to Quebec also comes from the U.S. We all stand to benefit if we take our money and invest it in the electrification of transportation. We also stand to benefit in terms of economic development and job retention.
Every litre of gas Quebeckers replace with electrons means money for Hydro-Québec. That money stays in Quebec to be reinvested in our services, including health services, social services, schools, roads, infrastructure and public transit. This is a win-win situation.
Unfortunately, what we are seeing now is that continued pressure from the oil and gas companies, backed up by our Conservative colleagues, has forced the government into submission since it came to power. Ever since this new government took office, we have seen more backtracking on the fight against climate change than ever before. It got so bad that the former stepped down from his position as Minister of Canadian Identity and Culture because he disagreed with all the federal government's backtracking, including the increased funding for oil and gas companies in the latest budget, Bill allowing the suspension of certain laws, including some environmental laws, and the regulations to accelerate the construction of fossil fuel and pipeline infrastructure, including liquefied natural gas facilities.
Unfortunately, when we look at what is going on with the electrification of transportation, we realize that a whole year has gone to waste. Last year, the government suspended the EV purchase incentives, causing EV sales in Canada to drop by nearly 50% in one year. While the whole world is ramping up EV sales, Canada is going backwards. The United States is about the only country that has stagnated. Canada is about the only country that has gone backwards. That is shameful, and the government is directly responsible.
Now, the Liberals are coming back to us with some incentives, and the Conservatives are getting all fired up. They have never said a word about the roughly $10 billion a year in subsidies granted to oil and gas companies. The Conservatives have never moved a motion to take that away. As they see it, giving money to oil and gas companies is fine, but helping people buy electric vehicles is not.
One of our major concerns is, of course, the affordability of vehicles. They are extremely expensive right now, especially electric vehicles. That is in part because there are currently barriers to entry and to competition from electric vehicles manufactured overseas in places like Europe that could come to Canada. There are plenty of models that would be much more affordable and much more economical for people, but the government is not allowing these vehicles into Canada, even though they are allowed into Mexico. The excuse is that European vehicles are not safe and do not meet Canadian standards. We do not have those vehicles here. What we need is access to affordable vehicles.
Yes, we need incentives in the short term, and we think they should be geared to household income. What I mean is that rich people are obviously not the ones who need financial help to buy electric vehicles. We should also limit the number of subsidies because it makes no sense to give away that much money.
That said, manufacturers should be forced to ramp up production of affordable EVs. Currently, the biggest lobby hindering electrification in Canada is made up of certain automakers that have fallen so far behind in Canada that they are struggling to compete with other vehicle manufacturers around the world, which is why these vehicles face barriers to entry to Canada. Opening the borders to allow vehicles in is a major issue, but we should not open them while burying our heads in the sand and acting as if there are no problems related to vehicle manufacturing in China, for example, where there have been documented reports of blatant forced child labour and human rights violations. We introduced a bill aimed at reversing the burden of proof so it is up to exporters to demonstrate beyond a shadow of a doubt that their products, including those from China, are not violating human rights and contributing to forced labour.
There are solutions. We need to implement them. The Bloc Québécois has proposed several. Obviously, we are concerned to see the government constantly backpedalling. Not only did the Liberals suspend the incentives for a year, but what they have announced now is that the mandate that would have forced manufacturers to produce and sell more EVs has been set aside, much to the satisfaction of Ontario and the automotive manufacturers. What people need to understand is that manufacturers will not do it unless they are forced.
The government is proposing an alternative: Instead of requiring 100% of all vehicles sold to be electric by 2035, Canada will only require 75%. It is backtracking again. This will delay electrification, at a time when states like California are staying the course. Europe is also being more ambitious. In China, 60% of new vehicles sold are electric. Today, as we speak, Canada is at 9%. These policies need to be strengthened, fast, rather than diminished and weakened as the government is doing.
Obviously, we will oppose the Conservatives' motion. We clearly see their intentions: They are carrying out the oil and gas companies' agenda under the pretext of wanting to defend ordinary folks.
:
Mr. Speaker, we are here today to talk about Canada's auto industry. For my community, this discussion is about far more than numbers on a spreadsheet, statistics in a report or words delivered here in Parliament. It is about livelihoods, families and the future of a sector that has shaped who we are. In Cambridge and North Dumfries, the auto industry is a huge part of who we are. The paycheques earned in our auto sector help families put food on the table and keep a roof over their heads. The companies themselves give back in ways that matter by sponsoring our kids' sports teams and supporting the charities and food banks that so many people in our community now rely on.
For more than 40 years, Toyota has proudly built vehicles in my hometown, creating thousands of good-paying manufacturing jobs and supporting tens of thousands more in parts supply, logistics, tooling and construction, as well as countless small businesses across our region. Thanks to those jobs, our community has grown and thrived, and our country has earned a reputation as a world-class auto producer and a place for innovators.
Canada is full of so many innovators the government could be supporting. Our very own University of Waterloo is leading groundbreaking research with a new battery that can charge faster and last longer. New innovation, new technology and new opportunities are all things to be proud of right here in Canada. It is critical that we support our local innovators and job creators.
Just a few weeks ago, I had the privilege of joining the workers at Toyota as they unveiled the sixth-generation RAV4 hybrid, which will be built in both Woodstock and Cambridge. I saw first-hand the pride in the eyes of the people who built these vehicles, the pride that comes with knowing that cars they had a hand in making are being driven on roads across North America. This is another remarkable Canadian success story, and is not unique to Cambridge. We will find the same pride in Ingersoll, Windsor, Oshawa, Oakville and auto communities across Ontario and across the country.
Recently, however, that pride has been overshadowed by fear and anxiety, because the truth is undeniable: Canada's auto sector is under serious threat. Since the took office, Canada has lost more than 5,000 jobs in the auto sector alone. Vehicle production has fallen off a cliff, from 2.3 million vehicles in 2016 to just 1.2 million last year, a nearly 50% collapse. Yes, these are the facts. There was a nearly 50% collapse under the current government. Our government has failed to get a deal in time with the United States, and workers are paying the price for trade instability and tariffs that have continued on long after the Prime Minister promised they would be gone.
What the government is doing in response to this crisis, and it is a crisis, is not supporting jobs here at home. Instead, it is subsidizing vehicles produced outside of Canada. Its new electric vehicle rebate, offering up to $5,000 per purchase of an EV, might sound great in a press release, but when we look closely and allow the smoke and mirrors to disappear, a very different scenario begins to emerge, one of reality and not rhetoric.
Approximately 95% of the vehicles eligible for this rebate are not made in Canada; they are imported. The government will not be supporting the manufacturing of Hondas made in Alliston, Chevy trucks made in Oshawa or the RAV4s made in Cambridge. Instead, it is giving away taxpayer dollars to entice people to buy Volkswagens made in Tennessee, Fords built in Kentucky and, yes, even Teslas.
We are now at a time when our auto industry is fighting for its life. Tens of thousands of jobs are hanging in the balance. Families will wonder how they will buy the higher-priced groceries, keep a roof over their head or provide the same opportunities to their children that they grew up with. Right here in Canada, our own government is using Canadian tax dollars to encourage people to buy cars made in the very country we are locked in a trade war with. A real auto strategy begins with a simple principle: Public money should support Canadian jobs first.
Let us be clear about all of this. It is not about opposing electric vehicles; it is about strengthening Canadian manufacturing capacity, instead of undermining it.
There is another serious issue with this EV rebate scheme that we need to talk about. It comes down to who benefits from this policy. Today, a new EV can cost nearly $50,000. Most people in my community, after 10 years of skyrocketing housing costs, which doubled in price, youth and unemployment at double the national average and grocery bills surging, can barely afford a tank of gas, let alone a brand new vehicle. However, this policy asks everyone to give just a little bit more.
A single mom who works in a minimum wage service job and a senior who has to return to the workforce part time just to keep up are now obligated to subsidize the purchase of a $50,000 electric vehicle, one they themselves may never be able to afford. It is asking laid-off parts workers and auto workers who have had their shifts cut to subsidize a policy that actively undermines their own economic security. That is not fairness; that is cruelty disguised as environmental policy.
When I went door to door during the last election, I made a promise to the people in my community. I promised to stand up for local jobs and the dream of Canada. That is why I am standing here in the House today, to defend our workers, our families and our community, all of whom rely on the auto industry. I am proud to serve on a Conservative team that is putting forward practical, straightforward solutions.
First, we believe that no Canadian taxpayer dollars should ever subsidize the purchase of a vehicle that is not made in Canada, built with Canadian labour, Canadian parts and Canadian ingenuity.
Second, we propose removing federal tax from all vehicles built here in Canada. Imagine the impact of this policy. This could save families more than $2,000 on a Canadian-made vehicle. At the same time, it would boost demand for trucks and cars to be assembled in Woodstock, Cambridge and other communities across Canada. More demand means more production. More production means more jobs. More jobs is what makes a stronger community for everyone.
Third, we are calling on the government to treat laid-off workers fairly. They should not have to pay the price for the government's failures by providing tax relief on severance payments. This is something the government has the authority to do, and it should use that authority without hesitation. The government has left the workers at CAMI in Ingersoll out in the cold. The very least the government could do is ensure that those families, who are now wondering where their next meal is coming from, are treated with fairness and dignity during one of the most difficult times of their lives.
None of this should be controversial. Supporting Canadian workers should not be controversial. Keeping Canadian tax dollars here at home to support Canadian jobs should never be controversial. Standing up for communities built on manufacturing should not be controversial. The government has the opportunity to stand with us today to support the auto workers in my community and across the country, and to finally get to work doing what it promised to do so long ago.
We have everything we need to succeed right here in Canada. We have the resources. We have the supply chains. We have the manufacturing capability. Most importantly, we have the skilled, capable labour to make it all possible. What we need is a government that will finally step up here at home instead of selling out to Donald Trump and Elon Musk. We need a government that finally puts Canadian workers first, a government that strengthens, rather than sidelines, the manufacturing jobs we rely on.
We carry our future, Canada's future, in our hands by the decisions that are made in the House. However, it is up to the government as to how it will choose to vote on policies that can make this all happen, even if those policies are Conservative policies, policies to support cars built at Ingersoll, built in Woodstock or built in Cambridge, the place I am proud to call home. It starts with supporting this motion. It starts with taking a stand for fairness and for dignity. It starts with fighting for every single one of our Canadian manufacturing jobs.
Let us unite and fight to support Canada.