The chair of Unifor's Auto Council says he's 'ecstatic' over the EV measures put in place as part of Canada's auto strategy, calling them 'so important to our community.'
John D'Agnolo, who's also president of Unifor Local 200 in Windsor, says he doesn't want to be the country on the outside looking in when it comes to electric vehicles because the world around us is still making and selling them.
"It's important as time goes by and the market starts to turn; I want to be in the game, and we have to focus on that also. We have to give Canadians the option, and it's important we always do that, and they've done this through this policy," he says.
Prime Minister Mark Carney announced Thursday several policy measures as part of a new strategy for the Canadian auto sector, including a new five-year $2.3 billion EV affordability program that will be available to consumers as of Feb. 16.
The program will offer individuals and businesses purchase or lease incentives of up to $5,000 for battery electric and fuel EVs and up to $2,500 for plug-in hybrid models (PHEVs).
The consumer rebates will only apply to vehicles that cost less than $50,000 and are imported from a country that has a pre-existing free-trade deal with Canada, meaning the coming allowance of a small number of Chinese EVs won't qualify for this benefit.
Canadian-made EVs, which right now include only the Windsor-built Dodge Charger and the Chrysler Pacifica, are exempt from the $50,000 cap.
The government estimates the rebates could result in an additional 840,000 new EVs hitting the road.
D'Agnolo says the EV rebates are important not just for the Windsor Assembly Plant but for people looking to buy Canadian-made vehicles.
"We're putting a third shift on, and we want to make sure that third shift stays. That incentive is so important to our community. I was ecstatic to see he put that in place," he says.
The strategy also includes a few tax credits and incentives available to the sector, including a new "Productivity Super-Deduction" that Carney says will "reduce Canada's marginal effective tax rate on investment to 13 per cent, more than four percentage points lower than in the United States."
D'Agnolo says he thinks we will see a difference when it comes to the new incentives for companies that invest in Canada.
"I'm tired of seeing companies that build all their vehicles outside the country and sell them here and don't employ anybody here," he says. "So, the incentives are huge for companies to come to Canada and start building here. That's how we became the auto capital in Ontario."
Over $3 billion in funding has also been committed to help accelerate investments in Canada's auto manufacturing sector and identify Canadian suppliers and Canadian-made goods such as steel and aluminium that can be leveraged in the sector's retooling efforts.
The government is also eliminating a Trudeau-era EV sales mandate that aimed to have EVs account for 100 per cent of Canadian sales by 2035 and instead is introducing a new greenhouse gas emission standard for vehicle models in the years 2027-2032. By 2035, the aim is to have 75 per cent of vehicle sales be EVs, and 90 per cent by 2040.
Carney's strategy also promises $1.5 billion to improve the country's EV charging network with funding flowing through the Canada Infrastructure Bank, with the money going towards "projects of national significance" that would build out charging infrastructure more quickly across the country.
D'Agnolo adds there are still worries around the Canada-United States-Mexico agreement on trade, up for renegotiation in July, and how important tariff-free markets are when it comes to our auto industry and hopes we get to a point where all three countries can continue to work together and be successful.
with files from CTV News