March 20th, 2019 - 7:55pm
FOR IMMEDIATE RELEASE
MARCH 20, 2019
TRUDEAU LIBERALS ABANDON CANADIAN AUTO SECTOR: Federal Budget Subsidizing foreign built autos
OTTAWA, ON – Brian Masse, MP (Windsor West), NDP Innovation, Science, Economic Development, Auto and Great Lakes Critic, was shocked and appalled in the Liberal Federal 2019 Budget that provides subsidies to purchase vehicles built in other countries, has no new money for investment in the auto sector or the supply chain to take advantage of new opportunities and establishes yet another corporate tax giveaway that does nothing to strengthen Canadian producers or support autoworkers.
“It is absolutely stunning that the liberals are creating a subsidy that will encourage Canadians to buy foreign built vehicles while providing no new money for the auto sector to take advantage of significant new opportunities for the Ontario based supply chain by Fiat Chrysler’s (FCA) new investment in Detroit,” Masse stated.
Budget 2019 created a new vehicle purchase incentive of up to $5000 for an electric battery or hydrogen fuel cell vehicle with a manufacturer’s suggested retail price below $45,000. The only Canadian built vehicle that could be considered, the Chrysler Pacifica Plug in Hybrid, has a list price of $51,000, which is above the price cap. All the other vehicles available in the market are foreign built. Additionally, the program has an overall cap of $300 million over three years for consumers while the government is providing businesses with an unlimited full tax write off for “zero emission” vehicles in the year that they are purchased. For businesses the vehicle price cap is $55,000 (plus sales tax). This is higher than the present capital cost limit of $30,000 (plus sales tax) for vehicles that now exists.
FCA recently announced a $6.5 billion investment in five facilities in the Detroit, Michigan area to build and assemble new SUV and truck models. Masse wrote the Minister of Innovation requesting the establishment of a working group to ensure Ontario based suppliers can take advantage of this once in a generation opportunity. The Minister has yet to respond. The liberal budget provided no new money for auto investment.
“The liberals talked of abandoning manufacturing and this budget demonstrates that they are doing exactly that,” Masse stated.
LETTER TO MINISTER MORNEAU: 190320 Morneau re FCA investment and electric car budget 2019
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