Industry and Technology

The committee studied the state of the Canadian automotive sector amid U.S. tariffs and recent production decisions by automakers. Witnesses were Jeff Hines, President of Stellantis; Flavio Volpe, President of the Automotive Parts Manufacturers' Association; Lana Payne, National President of Unifor; and Angelo DiCaro, Director of Research at Unifor.

Jeff Hines said Stellantis has invested $8.6 billion in Canada since 2022, including the NextStar battery plant in Windsor and upgrades to the Windsor and Brampton assembly plants. He acknowledged the decision to move Jeep Compass production from Brampton to Illinois was difficult and driven by uncertainty from U.S. tariffs and changing market dynamics. He said Stellantis remains committed to Canada, is adding 1,500 jobs in Windsor, and is exploring new product options for Brampton, but could not provide a timeline without trade certainty. He declined to say whether government subsidy agreements included job guarantees, citing confidentiality.

Flavio Volpe said the Canadian auto parts sector, representing 100,000 jobs, depends on domestic vehicle assembly, and that losing assembly plants would weaken the entire supply chain. He disagreed with the view that Canada could survive without assembly, noting 50% of parts made in Canada go into Canadian assembly plants. He said Stellantis and General Motors made choices favouring the U.S. and should face consequences for breaking commitments. He criticized the EV mandate as unachievable and not based in reality, and supported the government's firm response to Stellantis, including tariff remission adjustments.

Lana Payne said Unifor was blindsided by Stellantis's decision, having received false assurances for eight months that the Jeep Compass program was coming to Brampton. She called the move a betrayal of workers and a violation of the 2023 collective agreement. She argued the Brampton plant is nearly ready to build and could produce vehicles faster than the U.S. site, and called on the company to resume retooling immediately. She said government support for industry should include enforceable job and investment guarantees, and that Canada has leverage as a major market for automakers. She did not agree that the EV mandate was the reason for Stellantis's decision.

Angelo DiCaro said the Brampton plant has been exceptionally productive and was trusted to build Stellantis's most profitable muscle cars. He said the EV mandate was not a factor in the plant's production decisions, which were more influenced by U.S. fuel economy rules. He argued that the government's application-based funding mechanisms, like the strategic innovation fund, have proven useful because they give the government leverage to hold companies accountable, unlike blanket tax cuts.

The committee debated a Conservative motion to recommend abolishing the federal electric vehicle mandate. Conservatives argued the mandate reduces consumer choice, increases costs, and harms competitiveness, citing witness testimony. The Bloc Québécois opposed the motion, saying climate change requires strong measures and the mandate should be maintained pragmatically. A Liberal member moved to adjourn the meeting, which ended the debate without a vote on the motion.