On Wednesday, November 17, Premier Doug Ford and Vic Fedeli, the Minister of Economic Development, Job Creation and Trade, unveiled Phase 2 of Driving Prosperity – The Future of Ontario’s Automotive Sector. As a follow-up to Phase 1 (unveiled in February 2019) which focused on the creation of a competitive business climate, innovation, and talent, Phase 2 focuses on accelerating the production and growth in Ontario’s supply chains for electric vehicles (EVs) and battery manufacturing.
Ontario, historically, has been known as a top auto-producing jurisdiction in North America. In 2019, the auto sector contributed $13.9 billion in GDP to the provincial economy and employed 100,000 people in auto assembly and parts manufacturing.
Here is a snapshot of the Phase 2 plan:
Innovation and clean growth continue to rapidly influence and change the global auto industry. As a result, the government’s anchor objective for Phase 2 of Driving Prosperity – The Future of Ontario’s Automotive Sector is to maintain and grow Ontario’s auto sector by building a minimum of 400,000 EVs and hybrids by 2030.
To achieve this ambitious target, the government has committed to the following:
Through this announcement, the government is sending a clear signal to the world thatOntario’s automotive industry and manufacturing capabilities are open for business. Ontario is the only place in North America where five major automakers (Ford, General Motors, Honda, Stellantis, and Toyota) build vehicles. Optimism for new partnerships with leading automotive manufacturers will well position the province as an industry leader and while supporting economic growth. Coupled with the mandate letter issued to the Ontario Energy Board and the consultation on time-of-use pricing (that would greatly encourage overnight charging) that Sussex issued an update on last week, the Ontario government is putting the policy structure in place for the move to greater adoption of EVs. From both an economic development and a consumer perspective, the Ontario government clearly expects EVs to play a significant role and is positioning the province accordingly.
For more information, please consult with your Sussex associate.