The Big Story Is Canada’s EV dream dead?
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May 19, 2025 Tim Dimopoulos, Publisher of Automotive News Canada and an expert on the EV transition, dives into the pressing challenges facing Canada’s electric vehicle industry. He discusses Honda's surprising halt on its $15 billion investment and its far-reaching implications. The conversation shifts to the struggles of Canadian manufacturers amid economic uncertainties and changing policies. Dimopoulos highlights the impact of regional incentive withdrawals and examines whether Canada's ambitious goal for a nearly all-electric production by 2035 can still be realized.
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EV Demand Collapse Shakes Investments
- The $15 billion EV investment pause by Honda reflects a sharp drop in North American EV demand.
- Tariffs accelerated the pause, but demand collapse is the main reason industry reconsideration occurs.
Export to U.S. Drives Canadian Auto
- Canada's auto production largely depends on exporting to the U.S., not just serving the local market.
- Tariffs complicate this since Canadian-made EVs are primarily intended for the U.S. market.
Canadian EV Plants Unlikely to Relocate
- Stellantis and Volkswagen's EV plants in Canada face slowdowns but won't easily relocate to the U.S.
- Higher U.S. costs and supply chain factors make relocation to the U.S. unlikely.