Question Period Note: Automotive Sector Transition to Zero Emission Vehicles (ZEVs)

Automotive Sector Transition to Zero Emission Vehicles (ZEVs)

• The Government of Canada has prioritized the achievement of net-zero emissions by 2050, and thereby mandated the adoption of 100% zero-emission vehicle sales by 2035 for all new light-duty vehicles.
• The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) is committed to supporting the automotive industry and helping southern Ontario small- and medium-sized enterprises (SMEs) participate in electric vehicle (EV) supply chain opportunities.
• The Agency is also assisting communities with strong ties to the automotive sector to prepare for the rapid transition to zero emission vehicles and to harness the full economic potential from the large EV investments happening across the region.
• FedDev Ontario will continue to play an important role in the southern Ontario automotive ecosystem by investing in innovation and growth across the automotive sector. To date, FedDev Ontario has invested over $83 million in companies, organizations, and communities at the centre of the ZEV transition.

• Southern Ontario is home to a well integrated automotive supply chain comprised of more than 700 auto part suppliers, 500 tool, die, and mold makers, and over 400 connected and autonomous vehicle companies. Of these automotive manufacturers, 93 per cent are considered SMEs.
• Southern Ontario boasts the second largest vehicle producing jurisdiction in North America, with more than 1.5 million light duty vehicles produced annually by five original equipment manufacturers (OEMs), including Ford, GM, Stellantis, Toyota and Honda.
• Although southern Ontario’s auto manufacturing sector and its supply chains remain well established as key contributors to both the provincial and national economies, a period of rapid change is taking hold as the industry pivots towards ZEVs.
• Four of southern Ontario’s five OEMs – GM, Ford, Stellantis, and Honda – are presently producing (GM) or plan to produce (Ford, Stellantis, Honda) ZEVs out of southern Ontario-based assembly plants.
• As this industry evolves and demand shifts to ZEVs, southern Ontario’s automotive supply chain will also be required to adapt and transform in order to enable continued growth.
• FedDev Ontario provides strategic investments under its core programming to ensure both for-profit and not-for-profit organizations with ties to the automotive sector have the supports they need to harness the opportunities associated with the ZEV transition.
• FedDev Ontario has invested over $83 million in companies and communities at the centre of the ZEV transition:
o In 2023–24, FedDev Ontario provided support to Invest WindsorEssex, the London Economic Development Corporation, the Regional Municipality of Niagara, and Waterloo Economic Development Corporation to support the long-term growth of southern Ontario’s electric vehicle sector. Each project will assist the community to identify and prepare for new supply chain opportunities while increasing investment readiness.
o Starting in 2023, FedDev Ontario provided an investment of $2.75 million to Innovative Trailer Design Industries Inc., a manufacturer of trailers and trailer components, to adopt advanced manufacturing equipment and automate its manufacturing process and commercialize a new electric trailer product that uses solar energy and regenerative braking technology.
o Starting in 2022, FedDev Ontario provided an investment of $5 million to Marwood Metal Fabrication Ltd., a metal tamping and assembly company that operates as a Tier 1 and 2 supplier to the automotive industry, to manufacture more complex EV components will improving productivity and reducing lead times.
o Starting in 2021, FedDev Ontario provided an investment of $5 million to ArcelorMittal Tailored Blanks, a leading steel manufacturers of lightweight auto parts, to modernize its equipment and technologies to fully transition its Concord facility from producing fuel-powered vehicle components to producing one hundred per cent electric vehicle components for the automotive industry.
o Starting in 2019, FedDev Ontario provided an investment of $5.5 million to Axiom Plastics Inc., a plastic injection moulding company serving the automotive industry to increase capacity and technical capabilities in development, design, manufacturing, and quality control. Through this investment, Axiom expanded its capabilities in advanced injection moulding methods and solutions, positioning it well to meet manufacturing standards for electric vehicle components.

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