Canadian auto industry leaders are calling for bold action to bolster the country’s manufacturing base and explore the possibility of launching a national automaker, citing recent trade tensions with the United States under former President Donald Trump as a catalyst for change.
At a Canadian Club event in Toronto, Flavio Volpe, President of the Automotive Parts Manufacturers’ Association, emphasized that Canada has the resources, talent, and industrial ecosystem to build its own homegrown vehicle manufacturer. He highlighted that despite receiving over $50 billion in investments from six global automakers in recent years, Canada has yet to pursue the creation of a national automotive brand.
“Beyond shelter, transportation is the biggest and most advanced personal expense globally,” said Volpe. “Why wouldn’t we be in that business? Why can’t we? Why don’t we?”
Volpe argued that the global shift to electric vehicles (EVs) is lowering entry barriers and opening the door for new players, pointing to examples like Vietnam, Turkey, and Mexico, which are developing their own national EV brands. He has been leading an initiative to develop a Canadian-built concept EV and is advocating for a feasibility study into launching a Canadian automaker.
He warned against complacency in the face of mounting uncertainty triggered by protectionist trade policies, saying, “The shame would be in not trying, and all we do is end up playing defence.”
Martinrea International executive chairman Robert Wildeboer echoed Volpe’s sentiments, noting that disruptions in the U.S.-Canada trade relationship should serve as a wake-up call and an opportunity to reset industrial priorities. While he described the current U.S. trade strategy as ‘incoherent,’ Wildeboer expressed optimism that the US would ultimately recognize the importance of a unified North American economic front to counter competition from China.
He called for a renewed trade deal with stricter North American content rules and enforceable penalties to ensure compliance. Wildeboer stressed the need to balance the supply and demand of vehicles in the region, pointing out that North Americans purchase around 20 million vehicles annually, while only 15 million are produced locally. “If you have that increased production, everybody’s happy,” he said.
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