Hub Podcasts More bad news for the Canada's auto sector: What next?
Oct 15, 2025
Discover the recent blow to Canada's auto industry as Stellantis shifts Jeep production to Illinois, despite massive government subsidies. The hosts dive into the failures of industrial policy aimed at electric vehicles, questioning why billions didn't secure local jobs. They also discuss the unintended consequences of EV subsidies, propose removing tariffs to aid struggling farmers, and explore the benefits of importing affordable EVs for lower emissions. Ultimately, they call for a focus on upskilling workers and prioritizing competitive sectors.
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Subsidies, Not Markets, Drove Auto Policy
- Successive Canadian governments have relied on subsidies, not market fundamentals, to sustain the auto sector.
- Sean Speer argues this makes manufacturers' commitments to Canada weak and easily reversible.
Stellantis Walked Away After Big Subsidies
- Stellantis received large subsidies from Ontario and the federal government to build battery capacity in Canada.
- Despite $15 billion of support, Stellantis moved Jeep production from Brampton to Illinois.
EV Policy Caused Collateral Damage
- Canada traded off canola farmers' access to China to protect an EV agenda that lacked market basis.
- Sean Speer warns the EV strategy produced collateral damage and left Canada poorer for it.