CADA works with automakers on full auto recovery plan
February 22, 2021
CADA, working with the Canadian Vehicle Manufacturers Association in partnership with the Canadian Manufacturers' Association, the Global Automakers of Canada, and the Canadian Finance & Leasing Association, has launched a joint effort to ensure federal and provincial decision-makers are aware of the economic challenges faced by the Canadian automotive sector.
In mid-February, the associations met with a wide variety of federal Members of Parliament and cabinet officials to highlight the fact that new vehicle sales declined by 20 per cent in 2020. That decline is greater than what Canada experienced during the financial crisis, when vehicle sales fell by 13 per cent, according to CADA Public Affairs Director Huw Williams.
“The auto industry, manufacturing, retail, and the sales and service side, is a key driver for the Canadian economy. And what’s good for the auto industry is good for Canadians and the economy,” said Williams in an interview with CADA Newsline. “Vehicle parts and manufacturers employ 135,000 Canadians, in addition to the 160,000 employed by auto dealerships.”
Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance, has introduced a new federal initiative calling on sectors to bring forward their best ideas on how Canada can build back from the pandemic crisis. “The auto sector, being hit and more than 20 per cent down, is certainly an area that needs attention,” said Williams.
He said their joint submissions to the federal minister supported a vehicle scrappage program that would turn older, higher polluting vehicles into new, safe, and more fuel-efficient zero emission vehicles, stimulating the economy by boosting new vehicle sales and significantly reducing Canada's greenhouse gas emissions.
“The submission also stressed that the fragile nature of the economy means that there should be no new taxes that would hurt vehicle production, or dealerships and their employees, during this fragile economic time,” said Williams.
The core arguments made by the auto associations were presented before the Liberal Auto Caucus, as well as opposition Members of Parliament as the government shifts towards its longer-term recovery plans.
“During much of 2020, CADA has been laser-focused on programs, including access to the Canada Emergency Wage Subsidy (CEWS) that kept dealerships alive and in business,” said Williams. “Those programs will continue to be important in 2021, but a recovery template needs to be next on the government's agenda.”
More information about the association’s efforts will be included in future CADA Newsline articles.