CVMA Hot Topics

  • Canadian Vehicle Manufacturers’ Association Statement on USMCA Announcement

    The Canadian Vehicle Manufacturers’ Association (CVMA) issued the following statement regarding the announcement of a United States-Mexico-Canada agreement (USMCA) to modernize the North American Free Trade Agreement.

  • 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.

  • Progressive Agreement for Trans-Pacific Partnership (CPTPP)

    Despite the objections of so many vehicle manufacturers, automotive parts makers and steel producers in Canada, International Trade Minister François-Philippe Champagne signed the Progressive Agreement for Trans-Pacific Partnership ("CPTPP"), March 8, 2018. The trade-offs Canada made in signing the CPTPP are not positive for our automotive or steel industries because it failed to win meaningful access for our auto exports past Asian non-tariff barrier walls. The resulting one way street for auto trade simply encourages companies to explore ways to import vehicles from lower cost jurisdictions rather than investing in manufacturing them in Canada. Fact Sheet.

    The most immediate, highest level of impact for Canadian auto jobs and investment lies with the NAFTA. The government must make its economic priority the securing of a positive resolution to the NAFTA and delay moving forward with the ratification of the CPTPP until the outcomes of NAFTA are clear and certain

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