As the automotive industry continues to shift towards electric vehicles, concerns have been raised about the impact on Canada’s EV ambitions. With some Ontario plants hitting the brakes, experts are questioning whether the country’s goal of becoming a leader in the EV market is under threat.
According to a recent report by the International Energy Agency, Canada is lagging behind other countries in terms of EV adoption. In 2020, only 3.5% of new car sales in Canada were electric, compared to 10% in Europe and 4.2% in the United States. This has raised concerns about the country’s ability to meet its target of having all new cars sold be electric by 2040.
One of the main factors contributing to this slow adoption is the recent decision by some Ontario plants to halt production of electric vehicles. General Motors announced in November that it would be closing its plant in Oshawa, which produces the Chevrolet Impala and Cadillac XTS, both of which have electric versions. This was followed by Ford’s announcement in April that it would be closing its plant in Oakville, which produces the Ford Edge, including the electric version.
These closures have raised questions about the future of EV production in Canada. With these plants being major players in the industry, their closure could have a significant impact on the country’s EV ambitions. However, experts argue that this is not necessarily the case.
According to David Adams, President of the Global Automakers of Canada, the closures are not a reflection of the demand for electric vehicles, but rather a shift in consumer preferences towards SUVs and trucks. He also points out that there are still other plants in Ontario, such as the Toyota plant in Cambridge, that are producing electric vehicles.
In addition, the federal government has committed to investing $8 billion in the EV industry, including $1.5 billion to build a network of charging stations across the country. This investment, along with the recent announcement of a national EV strategy, shows that the government is committed to supporting the growth of the EV market in Canada.
Furthermore, the closures of these plants could also present an opportunity for Canada to attract new investments in the EV industry. With the country’s skilled workforce and strong supply chain, it is well-positioned to become a leader in EV production.
In conclusion, while the closures of some Ontario plants may raise concerns about Canada’s EV ambitions, experts argue that this is not a reflection of the overall industry. With government support and the potential for new investments, Canada’s goal of becoming a leader in the EV market is still within reach.
