Canada and Ontario Auto Pact: A Stride Towards Sustainable EVs

In a landmark move, Canada and the province of Ontario have joined forces to establish an Auto Pact aimed at securing crucial deals with global automotive giants Stellantis, LG Energy Solution (LGES), and Volkswagen.

This Auto Pact comes at a time when the automotive industry is undergoing rapid transformation, with a growing emphasis on electric vehicles (EVs) and a need for sustainable transportation solutions.

The partnership represents a strategic commitment from the Canadian government and Government of Ontario to solidify their position in the fast-evolving EV automotive landscape and foster economic growth through sustainable EV initiatives.

Our governments are pleased to announce that we have finalized an agreement with Stellantis-LG Energy Solutions (LGES) to create and secure thousands of good-paying auto jobs and tens of thousands of indirect jobs across Canada. As part of the agreement, Canada and Ontario will provide performance incentives to Stellantis-LGES of up to $15 billion, subject to conditions and benefits to Canada and Ontario.”
Office of the Premier Statement from July 6, 2023

Driving Economic Growth and Job Creation for Canada’s Automotive Sector

The automotive sector has long been a key driver of Canada’s economy, and Ontario is uniquely known as the heart of the country’s automotive industry. Beyond  the intended ecological benefits in combating climate change, the new Auto Pact formed by Canada and Ontario holds the additional promise of stimulating economic growth and job creation in throughout the region.

By securing deals with industry leaders Stellantis, LGES, and Volkswagen, the governments of Canada and Ontario plan to fortify the automotive sector’s position, ensuring its continued contribution to the sector’s prosperity through innovation and sustainable solutions. The pact will further encourage new investments and expansions through automotive leaders within the province.

“The governments of Canada and Ontario are partnering to attract once-in-a-generation projects that will anchor our auto manufacturing sector and keep good jobs in Canada.”
Office of the Premier Statement from July 6, 2023

With plans to encourage a more robust automotive ecosystem, all parties involved in the Auto Pact expect that it will lead to the establishment of advanced manufacturing facilities, research and development centers, and supply chain networks. With an enhanced automotive sector, job opportunities are projected to multiply across various fields, ranging from engineering and manufacturing to sales and services, benefitting Canada’s workforce and overall economy.

“[This investment] will protect and create thousands of good-paying jobs for workers, including unionized jobs, as we establish an end-to-end electric vehicle supply chain to strengthen the clean economy.”
Office of the Premier Statement from July 6, 2023

Advancing Canada in the Global Automotive Landscape

Another crucial aspect of the new Auto Pact formed by Canada and Ontario is its potential to strengthen the country’s standing in the fiercely competitive global automotive market. As countries around the globe compete to establish themselves as leaders in the electric vehicle revolution, strategic alliances with industry leaders become a critical means of gaining a competitive edge.

By joining forces with Stellantis, LGES, and Volkswagen, the governments of Canada and Ontario position themselves as attractive contenders for cutting-edge automotive technologies and investments. This Auto Pact partnership moreover has the potential to pave way for increased automotive innovation collaboration in research and development funding projects.

As the automotive industry continues to evolve rapidly, cooperation between governments and private entities becomes vital in navigating the complexities of emerging technologies and market demands. Through knowledge-sharing and joint initiatives, this Auto Pact will drive innovation and ultimately position Canada as an advanced ecosystem for sustainable transportation solutions.

Government Funding for Canadian Automotive Projects

The Auto Pact between Canada and Ontario marks a significant milestone in the pursuit towards sustainable mobility and economic growth. By securing deals with industry giants Stellantis, LG Energy Solution, and Volkswagen, the government showcases its dedication to promoting electric vehicles and fostering green practices within the automotive sector.

As the world moves towards a more sustainable future with goals towards zero-emissions by 2050, strategic partnerships such as the Auto Pact will continue to play a pivotal role in navigating the automotive industry’s route.

Is your Canadian automotive business  adopting new sustainability measures for long-term growth and profitability? With electric and autonomous vehicles set to disrupt Canada’s automotive industry by 2030, it’s important to understand trends, opportunities, and funding available to support your automotive projects to support the sector and your business goals.

Download our free Electric and Autonomous Vehicle Trends resource guide to learn more about these trends and how funding could support your automotive business’ goals.

Canadian automotive manufacturing trends

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