Are we close to reaching a deal with the Americans and if so does it include auto? It’s tough to tell based on what the government is saying, but their actions are speaking louder than their words.
On Tuesday morning, Mark Carney’s point man on cross-border trade was downplaying a story in the Globe and Mail that said the government was close to a deal with Trump on steel, aluminum and energy — but not autos.
“I was surprised to see this morning the report that we’re possibly going to finalize a deal in the next few days,” Dominic LeBlanc said to reporters.
Prime Minister Carney on the other hand didn’t confirm a deal, but he didn’t downplay it either.
“You know, we’ll see. We’re in ongoing discussions with the Americans, and you know, we’ll — I wouldn’t overplay it. I’m looking forward to seeing the president at APEC in Korea,” Carney said.
The idea that there could be a deal without autos has representatives for the industry worried that this sector will be left behind.
The news is especially troubling for the auto sector in Ontario , which has seen a string of bad news lately, Tuesday being no exception.
GM ENDING PRODUCTION AT BRIGHTDROP EV LINE
General Motors announced that they would end production of their Brightdrop electric vehicle line. The move has nothing to do with tariffs and everything to do with a lack of demand for the electric powered delivery vehicles.
Brightdrop was supposed to be a bright spot for the EV market, providing electric cargo vehicles for companies like Purolator and FedEx. While the companies did buy some, it clearly wasn’t enough while organizations like Canada Post took a pass completely.
The Ingersoll plant appears to be the only GM facility not to get new production with a different vehicle. There were no plant closures in Mexico, which is also facing the same tariff regime as Canada is and the Chevy Equinox, which used to be produced in Ingersoll, continues to roll off the line in Mexico as well as at expanding facilities in Kansas and Tennesee.
Clearly, GM and other companies do not view Canada as a safe and secure place to build vehicles for export at the moment.
The news about the job losses in Ingersoll, Ont. came after GM announced it would cut production at their Oshawa assembly plant from three shifts to two resulting in about 2,000 lost jobs. Last week, Stellantis reported that the Jeep Compass, which had been rumoured to be built in Brampton, would instead be made in Illinois.
DIRE SITUATION
This is the dire situation for the Canadian auto sector right now, so having the Carney government seek a deal that does not include auto would be a major blow. It might also signal that Carney and his team are willing to accept the terms laid down by Donald Trump’s commerce secretary Howard Lutnick.
“Car assembly is going to be in America and there is nothing Canada can do about it,” Lutnick said speaking to a Toronto business group two weeks ago.
Cars have been made in Canada for more than a century. Our auto industry grew up alongside the American industry and unlike Mexico, there is no credible claim that Canada somehow took American car plants and American jobs, but the Americans have that in their heads, and the Carney government may be accepting of that.
It’s hard to know exactly what is happening in the negotiations, but if the Carney government is looking to sideline an historic industry such as auto, our second biggest export, then Canadians deserve to know that. If they aren’t looking to sacrifice the auto industry, then they should start acting like they plan to defend it, because right now, that’s not the case.
Given our vast natural resources and industrial advantage, Canada can and should be negotiating from a position of strength but it’s clear that we’re not.
