states would have contemplated supporting almost none of the projects that Canada and Ontario have got involved in since 2000. Ottawa is getting closer to a vision for Canada’s green-economy future, but the budget shows it still lacks convictionīy that standard, U.S. When it comes to zero-emissions vehicles, Canada is pushing the wrong policies states – and in the U.S., only the states incentivize auto plants, not the federal government – generally employ a “one and done” method, incentivizing new plants only and doing so on a one-time basis. jurisdictions is both unique and expensive. One critical distinction between the Canada-Ontario approach and the support offered by U.S. It is our governments’ usual method of demonstrating support and nailing down jobs. The formula employed in support of the Stellantis-LG battery plant, a new “greenfield” facility, was similar. When that happens, the federal and provincial governments assemble a package to encourage them to stay, usually offering about 20 per cent of the total spending the automaker will need to refurbish the plant. About two years before an aging model is set for an overhaul – which occurs at five- or six-year intervals – a manufacturer decides whether the new version will be made in an Ontario plant or elsewhere (e.g. Based on total production in Canada since then, that’s about $200 for every vehicle made. Including the bailouts of GM and Chrysler in 2009, government support of those five companies since 2000 has cost $8.6-billion. Every vehicle maker in Canada has benefited: General Motors, Ford F-N, Chrysler and its various iterations (now known as Stellantis), Toyota and Honda. Including the latest announcements, Canada and Ontario have doled out 21 auto-related incentive or rescue packages of $100-million or more since 2000. Of course, providing this kind of support is far from new. South and Mexico), its expensive electricity, and the vagaries of dealing with a border is about 20 per cent of the cost of automakers’ investments in Canada. Regardless of these projects’ nature – to overhaul old plants or build new ones to make vehicles powered by internal combustion engines or ones that run on batteries – these announcements suggest that our governments have accepted the fact that the price for mitigating Canada’s high-cost labour (compared with the U.S. Only the battery plant in Windsor is new. Of the three announcements, two are for the refurbishment of existing facilities. The past few weeks have brought a trio of federal and Ontario government announcements about incentives for automakers: $518-million for General Motors GM-N plants in Ingersoll and Oshawa, $267-million for Honda HNDAF in Alliston, and $1-billion for a Stellantis-LG battery plant in Windsor. Greig Mordue is an associate professor and the ArcelorMittal Dofasco chair in advanced manufacturing policy in the faculty of engineering at McMaster University.
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