Canada's EV market was already in trouble. Tariffs made it worse, Ontario workers say

INGERSOLL - Bob Pulham recalls the optimism in the air when General Motors began producing electric vans in Ingersoll, Ont., in late 2022.
As the first BrightDrop commercial van rolled off the line at the CAMI Assembly plant, GM executives, union leaders and former prime minister Justin Trudeau touted it as a major milestone for electric vehicle production in Canada.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Toronto Star

4 hours ago

• Toronto Star

Canada's EV market was already in trouble. Tariffs made it worse, Ontario workers say

INGERSOLL - Bob Pulham recalls the optimism in the air when General Motors began producing electric vans in Ingersoll, Ont., in late 2022. As the first BrightDrop commercial van rolled off the line at the CAMI Assembly plant, GM executives, union leaders and former prime minister Justin Trudeau touted it as a major milestone for electric vehicle production in Canada.

Globe and Mail

5 hours ago

• Globe and Mail

Can Ford's US Muscle Shield It From the Tariff Crossfire?

Ford Motor Company F is anticipating pressure built from tariffs in the upcoming periods. The industry-wide supply chain is yet to wholly grasp the impact of tariffs on production, changes in the implementation of tariffs and retaliatory tariffs. In this context, Ford announced its prediction of a net adverse adjusted EBIT impact of about $1.5 billion for 2025. It logged $1 billion adjusted EBIT in the first quarter of 2025, but due to prevailing instability in the industry, guidance has been withdrawn. Although there remains uncertainty, Ford, being one of the largest auto manufacturers in the United States, might expect certain advantages. Ford, compared with its competitors, built 300,000 more vehicles in the United States last year. This provides the company with a competitive edge. Its peers will face difficulties in increasing manufacturing capacity in the country, as that would entail huge costs, compromising affordability. Ford's 80% parts in use are already USMCA trade rules compliant. The company seeks other ways to build more parts locally. It has also implemented smart changes to tackle impacts. Ford now ships vehicles from Mexico to Canada using bonded carriers, which avoids U.S. tariffs. A similar strategy is also followed for auto parts that only travel through the United States. Ford seems confident as it has been building more in America since 2020, investing $50 billion to grow vehicle and battery production. Peer Comparison General Motors Company ( GM ), an auto giant of America, has predicted declines in profit this financial year. It imported the highest number of cars into the United States in the last year. General Motors lowered guidance owing to an estimated $4 million to $5 million exposure to the impacts of auto tariffs. However, a mitigation of 30% of cost increases due to tariffs can be expected through General Motors' tailored initiatives. Stellantis N.V. ( STLA ), another multinational automaker, is also suspending its guidance for fiscal 2026 amid tariff-related challenges. Stellantis has plans to reassess its capital spending strategies. The company has also brought down its vehicle imports in April in response to tariffs. Stellantis, along with other giants, is working with the government to soften the auto tariff woes. The Zacks Rundown for Ford Shares of Ford have lost around 5.1% over the past year against the industry 's growth of 20.8%. Image Source: Zacks Investment Research From a valuation standpoint, F trades at a forward price-to-sales ratio of 0.26, below the industry average. It carries a Value Score of A. Take a look at how Ford's EPS estimates have been revised over the past 30 days. Ford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Stellantis N.V. (STLA): Free Stock Analysis Report

CTV News

a day ago

• CTV News

Canada's EV market was already in trouble. Tariffs made it worse, workers say

Employee's cars sit in the parking lot at GM's Cami Assembly plant in Ingersoll, Ont., Friday, April 11, 2025. THE CANADIAN PRESS/Geoff Robins INGERSOLL — Bob Pulham recalls the optimism in the air when General Motors began producing electric vans in Ingersoll, Ont., in late 2022. As the first BrightDrop commercial van rolled off the line at the CAMI Assembly plant, GM executives, union leaders and former prime minister Justin Trudeau touted it as a major milestone for electric vehicle production in Canada. Pulham, a Unifor representative at the plant, remembers talk of increasing shifts and hiring more people to produce 50,000 such delivery vans annually by 2025. But the sales never picked up, the plant kept slowing down the production line amid sluggish demand and the optimism slowly faded. This April, GM announced it would idle the plant for several months and resume production in October with just one shift. Union members say about half of 1,200 workers at the plant will be gone as a result. 'I feel bad for all 600 that are being laid off. It's a horrible position to be put in,' Pulham said in an interview. 'It's a crazy amount of uncertainty and I think that hurts people.' The announcement came shortly after U.S. President Donald Trump imposed tariffs on Canadian-made vehicles, but a GM Canada spokesperson said the halt was directly related to lower-than-expected demand for the BrightDrop vans. Pulham, who began working at the CAMI plant more than three decades ago, said his wife has also been laid off and is now pondering whether to go back to school or search for a new job. Several other companies, including Honda, Stellantis, Umicore and Ford have also delayed or scrapped their EV projects amid the slow sales growth and the ongoing trade war. GM Canada said reducing production in Ingersoll was necessary to adjust to market demand and balance inventory. But workers at the CAMI plant say Trump's tariffs made things even worse. They've experienced the industry's ups and downs over the decades, but say this challenge is especially difficult at a time of great economic uncertainty. 'There's a push to build (vehicles) in the U.S., and that has caused a lot of issues over here,' Pulham said. 'So, it's not a good situation.' Mike Van Boekel, the Unifor Local 88 CAMI plant chairperson, said even though workers knew layoffs were on the horizon, the news was still shocking for many. 'It was terrible,' he said. 'I thought we were going to lose a shift. I was worried in the back of my mind … and now it has come true.' GM's ambitious plan to be at the 'forefront of a big wave' of electric delivery van production didn't materialize because the timing was not right, Boekel said. He felt the company was gaining some momentum before the imposition of 25 per cent tariffs on Canadian-made vehicles. GM had just received an order of a thousand delivery vans from the U.S. grocery chain giant Kroger, he said. 'So, it looked like we were just getting to go and all of a sudden, the tariffs came on,' he said, adding that CAMI workers will still produce Kroger's vans when they return to the factory this fall. Workers aren't the only ones feeling the pain. The ripple effects of layoffs are a source of concern for Ingersoll Mayor Brian Petrie. The CAMI plant, which spans two million square feet, is the largest employer in the southwestern Ontario town of about 14,000 people. Petrie said Ingersoll expects to receive $1.8 million in municipal taxes from the company this year, which is around 10 per cent of the total levies the town is expected to collect. 'It is devastating because we're not talking about new employees here, either, these are long serving employees and ... they've had a tough road going up to that point,' Petrie said in a recent interview at his office. The federal government under Trudeau set a target of 100 per cent zero-emission sales of light duty vehicles by 2035. Environment Minister Julie Dabrusin indicated this week that mandate won't be changing. But that goal seems hard to achieve, Petrie said. 'It's honest to say that I think everybody may have misunderstood the scale of the problem that we're facing to do the EV switch,' he said. 'I think all of them will admit that it's been a bigger problem than they once thought.' Still, he thinks the more than $50 billion in investments that Canada has pledged since 2020 to incentivize the EV supply chain will pay off in the long term. Some provinces, including Manitoba and Quebec, are offering rebates for electric vehicle purchases. B.C.'s rebate program, which was the longest running in the country, was paused last month. Ontario scrapped its rebate program after Premier Doug Ford's Progressive Conservatives won the election in 2018. The federal government also halted in January its Incentives for Zero-Emission Vehicles program, which offered up to $5,000 off the cost of a new electric vehicle. Dabrusin said Ottawa intends to bring back consumer rebates for EVs, but doesn't yet know what they'll look like. Zero-emissions vehicles represented only 8.7 per cent of all new vehicle sales in Canada in the first quarter of 2025 — a drop from 16.5 per cent in the fourth quarter of 2024, according to data from Statistics Canada. The sales of EVs and plug-in hybrids had steadily increased from below one per cent in 2017 to 14.6 in 2024, but experts say the growth hasn't been nearly as fast as many expected. Dan Park, CEO of online used car retailer Clutch, said EV adoption has been slower in Canada because people normally drive long distances in colder temperatures, which reduces battery life by 20 to 40 per cent and slows down the charging speed. 'Canada is just a fundamentally harder market to have,' he said. 'Until technology and battery life is improved to be able to handle colder conditions, I think Canadians will just shy away from it.' Park said EVs make up only five per cent of Clutch's inventory, which is tied to consumer demand. He said consumer rebates and production subsidies 'artificially propped up the market,' and provincial and federal governments should instead invest in a stronger charging infrastructure to encourage more Canadians to adopt EVs. A recent survey by consumer insights firm J.D. Power shows that only 28 per cent of nearly 4,000 respondents said they were 'very likely' or 'somewhat likely' to consider an EV for their next vehicle purchase, down from 29 per cent last year and 34 per cent in 2023. The survey also found that 75 per cent of new vehicle purchasers aren't confident Canada can reach its 2035 zero-emission vehicle sales goal. Manufacturers took note of the lacklustre interest. Honda Canada announced in May that it's postponing a $15-billion EV project in Ontario, citing the 'unexpected slowdown' in the market. Stellantis is postponing the production of an EV model of 2026 Dodge Charger Daytona R/T at its Windsor, Ont., plant as it assesses the effects of U.S. tariffs. And Ford Motor Co. said it will assemble F-Series Super Duty pickup trucks at its Oakville, Ont., plant beginning in 2026 instead of planned electric vehicle production at the site. Despite the setbacks, Environment and Climate Change Canada said it will continue to support investments and innovations in the EV supply chain. Canada's zero-emissions vehicle sales mandates ensure 'Canadians have access to electric vehicles, which offer long-term savings for consumers,' department spokesperson Hermine Landry said in a statement. 'Transportation emissions have declined to levels not seen in decades, demonstrating that we can grow our economy while also fighting climate change,' Landry said. 'It is important to remain focused on the fact that the real threat to the Canadian auto industry right now are the unjustified tariffs from the United States.' Overall, Canadians buy around two million new vehicles annually and the country produces approximately 1.5 million of them, according to Unifor. Autoworkers say the federal government should push for more vehicle production in Canada from manufacturers such as Kia, Hyundai, Mitsubishi and others that don't have any production footprint in the country, to offset the impact of U.S. tariffs. 'It'd be nice, (if) the government stands up for us and you know says to these big companies, 'If you want to sell here, then you need to build here as well,'' said Paul Harvey, who works as a framing team leader at CAMI. Harvey said that although he and his wife will keep their jobs at the CAMI plant in Ingersoll, they will both have to work the same hours when production resumes on one shift. With four children at home, that means the couple will need a new child-care plan and increased costs will come with it. Harvey, who has been an autoworker for 20 years, said it would be 'kind of silly' to think that the transition to electric vehicles would happen at the flick of a switch. He said he and his wife remain optimistic about the EV market and that's why they purchased a Chevy Blazer EV just a few weeks ago. 'We're committed to moving into the future with the electrified vehicles,' he said. 'I do believe it will get there eventually.' Article by Sharif Hassan.