Should Taxpayer Rebates Go to Companies That Left Canada?

For today’s report, I am going to start with a question I was recently asked because it is an important question and I am surprised that more of Canada’s legacy media are not asking it.

The question is this: How is it possible that Stellantis can move jobs out of Canada to avoid President Trump’s tariffs but still get Canada’s subsidies?
 
The question might seem simple, but the answer is anything but.

To understand the situation, we first have to look at Stellantis, the parent company for Jeep and Chrysler. In 2022, the Liberal government announced they were partnering on a $3.6 billion investment to re-tool the manufacturing plants in Windsor and Brampton. For Brampton, this was the promised lifeline: transitioning from the old Dodge muscle cars to a new flexible line capable of building the electric vehicles of the future, including the next-generation Jeep Compass.
 
Unfortunately, to avoid President Trump’s tariffs on made-in-Canada vehicles, Stellantis announced last fall it would abandon the plans for Brampton. Instead, they decided to invest $13 billion USD ($18 billion CA) to expand their U.S. footprint across Illinois, Michigan, Ohio, and Indiana. This massive shift will create roughly 5,000 jobs in the United States, including thousands in a reopened plant in Illinois specifically to build the Jeep Compass, instead of here in Canada.

This decision caused outrage in our auto sector and raised serious concerns about how the federal government could give away billions without securing returns to prevent Canadian jobs from being outsourced. Under pressure, the government finally declared Stellantis to be in breach of contract, but the damage was already done.
 
Fast forward to last week, where Prime Minister Carney announced the Liberal government’s new national automotive strategy. There is some common-sense news here: the Liberals are finally doing away with former Prime Minister Justin Trudeau’s electric vehicle mandate that would have required all new car sales to be electric by 2030. If you have read previous reports, this EV mandate was heavily opposed by the constituents of Okanagan Lake West-South Kelowna who took the time to respond to my MP reports. They did not like the idea of ‘credits’—the regulatory scheme where traditional manufacturers were forced to write million-dollar cheques to companies like Tesla to cover their quota shortfalls, essentially subsidizing their own competition at the expense of the Canadian consumer. This change was called for by the Conservative Opposition for years, particularly since our automotive sector is so integrated with the U.S. after a similar mandate was removed south of the border.
 
However, while the leader has changed, the policy of inadvertently favouring the United States over Canadian production remains. Instead of car manufacturers sending cheques to their American competitors, the government has decided to send instead billions in taxpayer rebates.
 
The newly announced program unveiled by the Prime Minister is a $2.3-billion “Electric Vehicle Affordability Program” offering a $5,000 rebate for purchasing a new electric vehicle. To be eligible, a foreign-made vehicle must be under $50,000 and be manufactured in a country that Canada has a free-trade agreement with. This creates a ridiculous irony and a double loss for the Canadian taxpayer. We have seen how easily these programs are exploited. Just before the previous program was cancelled last year, Tesla reportedly claimed $43 million in rebates in a single weekend, effectively draining the funds before many Canadian dealers and consumers could even access them.
 
In Question Period yesterday, I found it telling that Minister Anita Anand defended these rebates going to foreign companies, saying:
 
“Mr. Speaker, it is shocking that the opposition members do not recognize the measures the government has taken to support the auto sector, to support workers and to make sure that we are investing in national projects.”
 
It is deeply ironic that the same Minister who oversaw the weekend where Tesla scooped up $43 million only last year is now defending a strategy with so little “Canada” actually in it. As of today, the only major battery-electric passenger vehicle currently being built in our country is the Dodge Charger Daytona- made by Stellantis in Windsor. While other manufacturers like Ford and GM have cancelled or delayed their Canadian EV plans to pivot back to gas-powered trucks, the Liberal government is doubling down on a company that has already shown it will move jobs across the border the moment it suits them.
 
Under this new plan, Stellantis is essentially rewarded for moving production to the U.S. They avoid President Trump’s tariffs by building in Illinois, but because of our free-trade agreement, a made-in-USA vehicle from one of their brands would still be eligible for a $5,000 Canadian taxpayer subsidy.
 
My question to you this week is simple: Do you agree with the Liberal Government strategy to offer EV rebates to vehicles manufactured by a company that has moved jobs out of Canada?
 
 Please consider joining the discussion online at my Facebook Page. Alternatively, I can be reached directly at Dan.Albas@parl.gc.ca or toll-free at 1-800-665-8711.