Feb 12 • 20:43 UTC 🇨🇦 Canada National Post

Randall Denley: Carney’s EV plan benefits Carney, not Canadian carmakers

The article critiques Prime Minister Mark Carney's electric vehicle strategy, arguing it benefits him more than Canadian carmakers by relying on unrealistic assumptions.

The article by Randall Denley criticizes Prime Minister Mark Carney’s new plan for the Canadian auto industry, particularly its focus on electric vehicles (EVs). Denley argues that Carney's plan, while designed to support Ontario's struggling vehicle manufacturers, is disconnected from the actual economic realities that the industry faces. He points out that the plan assumes a swift transition to EVs that Ontario manufacturers are not prepared for, and it overlooks the need for a robust domestic production capability for these vehicles.

Denley highlights that Carney’s proposal is based on several unrealistic premises, including a sudden surge in consumer demand for EVs and a non-existent export market for these vehicles. He criticizes the plan's main feature, which is a $2.3 billion federal rebate intended to incentivize Canadians to purchase EVs, but notes the irony that it may ultimately encourage Canadians to purchase vehicles manufactured abroad, especially given that the new Chinese imports are excluded from the rebate applicable to buyers. This, according to Denley, may further harm Canada’s own automotive industry rather than bolster it.

In conclusion, Denley asserts that Carney's strategy may serve political interests and benefit the Prime Minister more than the local automotive sector, which needs targeted support that doesn't exacerbate its existing vulnerabilities. The article challenges the practicality of the EV-focused approach and calls for a more grounded solution to the challenges facing Canada's auto manufacturing landscape, emphasizing that sustainable growth requires a nuanced understanding of current market dynamics.

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