Biden’s budget puts Canada’s auto sector in peril – by Brian Lilley (Sudbury Star – October 18, 2021)

Joe Biden’s pledge to support all things made in America could end up costing thousands of Canadian jobs in the auto industry. Budget legislation moving through the American Congress contains tax breaks for electric cars that could pretty much rule out future investments by automakers in Canada and cost tens of thousands of jobs.

The legislation would increase the incentive for buying an electric vehicle to $12,500 but only if the vehicle, and the battery that is in the vehicle, are both made in the United States.

That could rule out battery plants being considered for Ontario. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, said Monday that the impact of this budget proposal shouldn’t be underestimated.

“The protentional harm from this action could exceed any Donald Trump threw at us,” Volpe said. Toyota announced plans for a U.S.-based battery plant on Monday. Ford has previously announced electric plants in Tennessee and Kentucky but so far, despite aggressive sales efforts, nothing for Ontario yet.

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