Canada has announced it’s changing remission quotas for two automakers in another move tied to the US-Canada trade war. This follows decisions by General Motors and Stellantis to reduce manufacturing in Canada. A statement from the Department of Finance reads:
“This decision aligns with the government’s long-standing position: we expect these companies to meet their contractual obligations and respect their commitments towards Canada and their workers.”
Stellantis had recently announced that it will be moving some production to the U.S. Around the same time, GM stated that it will be ceasing production of BrightDrop vans. Stellantis has plants in Brampton, Etobicoke, and Windsor. Meanwhile, GM has a CAMI plant in Ingersoll and another in Oshawa.
CAMI assembly at a GM plant. (Source: General Motors)
“The decision to end production of the BrightDrop electric delivery van is driven by market demand and in no way reflects the commitment and skill of our workforce at CAMI,” assured Kristian Aquilina, president and managing director of GM Canada.
Back in April, remission quotas were established for auto companies. Meaning they could be spared from counter-tariffs on imported vehicles by producing enough inside the country. Now, as part of Canada’s latest decision, GM’s annual quota will be dropped by 24.2% while Stellantis’ will be cut in half.
Seemingly in response, Stellantis has announced changes to its executive chain. This includes the appointment of a new president, Trevor Longley. The former Jeff Hines has been appointed to a newly created position, Head of North American Fleet Solutions.
The importance of the auto industry to Canada’s economy can not be overstated. According to government statistics, about 125,000 jobs are supported by the industry. Ontario alone houses 80% of those.
