Toronto, Canada – Leading figures in Canada’s automotive industry are urging the country to leverage the industrial crisis brought about by the divisive policies of Donald Trump as an impetus for significantly expanding domestic manufacturing. Flavio Volpe, head of the Automotive Parts Manufacturers’ Association, used a recent Canadian Club event in Toronto to advocate for exploring the feasibility of establishing a new, Canadian born automaker.
Volpe questioned why Canada, a nation where transportation represents the largest non housing expense globally and cars are among the most expensive and technologically advanced portable goods, should not be a leader in this business. He noted that while Canada boasts a well established automotive industry, having secured some $50 billion (approximately £29.5 billion) in investment commitments from six major automakers in recent years, the country possesses all the necessary components to cultivate a domestic champion. “We just never took the ambition to take that up step to say, why can’t we? Why don’t we?” Volpe asserted.
He is pushing for a thorough study to assess the true possibility of such an endeavour, pointing out that other nations like Vietnam, Turkey, and Mexico are already promoting national brands as electric vehicles disrupt traditional barriers to entry in the industry. Volpe, who has championed the development of a Canadian built concept electric vehicle, acknowledged the inherent challenges in launching a new automaker. However, given the ongoing shakeup caused by Donald Trump’s tariffs, he stressed the importance of ambitious exploration of alternatives. “The shame would be in not trying and we all we do is end up playing defence,” he warned.
Robert Wildeboer, executive chairman of Martinrea International, speaking at the same event, described the recent rupture in the trade relationship with the United States as a wake up call and a tremendous opportunity. He expressed belief that Donald Trump would ultimately recognise the importance of a robust North American trade bloc to counter China, despite summarising the current US trade approach as “incoherent.” “That doesn’t mean that we can’t work over something that’s really good in the context,” Wildeboer stated, adding that “The U.S. is going to have to realise who are its allies and friends.”
To cultivate a stronger Canadian, and indeed North American, industry, Wildeboer advocated for a renewed trade deal coupled with higher North American content requirements, enforced by sufficiently stringent penalties. He called for a concerted effort to compel international automakers to produce more of their vehicles within the region, aiming to close the substantial gap between the 20 million vehicles purchased by North Americans annually and the 15 million currently built in the region. “If you have that increased production, everybody’s happy,” he concluded.
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