CVMA Hot Topics


    At Round 4 of the NAFTA 2.0 negotiating session, October 12, 2017, the U.S. tabled its proposal seeking unworkable changes to the automotive Rules of Origin. Because of the complexity and numerous interrelated features of the Rules of Origin, the cascading effect on other provisions will lead to highly disruptive consequences harmful to the competitiveness of the manufacturing industry and the thousands of jobs the integrated supply chain supports across Canada, the U.S. and Mexico.

  • Zero Emission Vehicle (ZEV) Mandate

    Vehicle manufacturers support collaboration and a partnership approach with governments to create increased consumer demand for electric vehicles given the environmental benefits over the mid-long term and global efforts to reduce reliance on petroleum fuels. On the other hand, a regulated ZEV mandate like that proposed in Quebec should be avoided. Such a regulation requires each vehicle manufacturer to meet a specific number of electric vehicle sales credits based on its total annual sales for a subject year. In effect, it requires manufacturers to sell a specific ratio of new zero emission (electric vehicles) at rates that exceed the natural consumer uptake of these vehicle technologies, unnecessarily forcing additional costs on consumers and potentially restricting their choice of non-electric vehicles needed to transport people, goods or services safely.

  • Cap and Trade

    Under Ontario’s Cap and Trade program, the auto industry is at a significant risk for carbon leakage and is highly trade exposed as it exports almost 99% of what it builds. In the absence of similar programs in competing jurisdictions, higher manufacturing costs in Ontario as a result of the Cap & Trade program (direct fuel purchases to run plants, increased electricity costs, or increased indirect costs for suppliers and transport of goods) will increase the risk and the competitive viability of existing automotive plants in Ontario.

  • Electricity Costs

    Ontario’s auto plants have the highest electricity rates compared to auto plants in competing U.S. states creating a competitive cost gap compared to the U.S. and pay the highest rates of any other sector within the province (2-3 times higher). This cost gaps is equivalent to $80M - $126M annually, or the cost of a new product program every 4-5 years.

  • Workplace Review (Ontario Bill 148)

    CVMA members recognize and support the government’s desire to address through Bill 148, the evolving nature of the workplace in an effort to reduce the incidence of precarious employment and protect vulnerable workers. Ontario unionized workers in CVMA member plants are not precarious workers. In order to avoid unintended negative impacts on the auto sector and to maintain the competitive labour environment in Canada versus the United States, Ontario needs to recognize companies that already meet or surpass the minimum standards being considered in these reforms.

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