Business Brief: An idea to save Canada’s troubled auto sector
An expert proposes reviving aspects of the 1965 Auto Pact to address Canada’s auto industry challenges amid U.S. tariffs and Chinese EV competition.Summary
Canada’s auto industry faces significant challenges due to U.S. tariffs and the rise of inexpensive Chinese electric vehicles. Andrei Sulzenko, a former automotive directorate head, suggests revisiting the 1965 Auto Pact, which fostered efficiency through integrated North American production. The core idea is to offer the U.S. a deal where for every car sold in the U.S., there’s an equivalent amount of auto production within the U.S., allowing companies to maintain jobs and production scale. This approach differs from current plans that focus solely on production within Canada, which Sulzenko argues is inefficient. He emphasizes that Canada and the U.S. benefit from an integrated auto sector, and this proposal aims to preserve that while addressing U.S. concerns about domestic production. The article also briefly mentions Canadian military modelling of a hypothetical U.S. invasion and provides updates on economic and market trends.
(Source：Theglobeandmail)
