Campaigning Ford pledges 'whatever it takes' to help troubled Ontario EV sector

Ontario Progressive Conservative Leader Doug Ford is pledging to help the province's emerging electric vehicle (EV) industry as it faces a combination of market headwinds and export tariff threats made by U.S. President Donald Trump.

Ford, who spent Thursday campaigning in London, Ont., ahead of next month's provincial election, said the tariffs are “a bullet aimed straight at the heart of our auto sector.” He vowed his government would take steps to buoy the beleaguered sector, starting with channelling $1 billion more into an Ontario training fund for factory workers.

"Ontario faces the biggest [economic] challenge yet in its history. President Trump is promising steep and sweeping tariffs that will devastate our economy, including the auto sector,” said Ford.

"Even if President Trump tears up the U.S. commitment to [Canada's] auto industry, we will not."

If re-elected, Ford said his government would honour its 2023 pact with Ottawa to pay one-third of production incentives to Volkswagen, Stellantis and LG Energy Solution for future EV battery plants. So far, that promise has spurred investments of about $46 billion.

“We will maintain our financial commitments to the EV and battery auto pact that has created game-changing investments and thousands of jobs,” he said. “An economic attack on our autoworkers is an attack on every person in Ontario.” 

Ontario and the federal government have rolled out a $100-billion strategy to transform the country into a powerhouse in the international EV supply chain, partly to compete with former U.S. president Joe Biden’s Inflation Reduction Act, which built in a tax credit for zero-emission vehicle purchases.

"Direct attack" on Canadian autoworkers 

“We have to be prepared for a direct attack on our autoworkers,” said Ford.

He promised a $1 billion top-up to the Ontario Skills Development Fund, which supports projects hiring, training, or retaining workers, to dampen the impact of any imposed U.S. tariffs. There would also be about $140 million more for retraining caused by near-term trade impacts.

Matthew Fortier, CEO of Accelerate ZEV, a cross-sectoral e-mobility advocacy body, told Canada’s National Observer that Ford’s promise to stick to the pledged financial support for the provincial EV ecosystem’s development was important given the potentially destabilizing forces at work in the market.

“Businesses need predictability. Ontario keeping its word is the best way of ensuring we keep the investments being made by auto manufacturers through what are certainly difficult times,” he said. 

Canada must reassure companies that have chosen to open plants here and could move elsewhere, Fortier said. “These are important go-forward projects, provincially and federally.”

Moe Kabbara, executive vice president of the Transition Accelerator, a think-tank, told Canada’s National Observer that the threatened 25 per cent tariff would be “a gut punch” to the sector, adding: “Ford's got the right idea by staying the course on EVs. This isn’t a sprint that we're in, it's a marathon that'll play out over decades.” 

Ontario Liberal Party Leader Bonnie Crombie, campaigning in Mississauga, lambasted Ford for putting “all of our eggs in the EV basket.” It is an investment strategy she said exposed a lack of diversification in the provincial economy at a time when the market for EVs appears to be softening.

EV plant construction fears

“I am very concerned. If Trump pulls EV subsidies south of the border, will the Honda plant [in Alliston] continue? Will the Stellantis plant [in Hamilton] continue? I think a few of these plants may not proceed,” if the U.S. EV market contracts, she said.

A recent survey by EY, a consulting firm, found Canadian interest in EVs has stalled, with only half of the 48 per cent of people who expected to be looking for a new car in 2025, saying they would consider a zero-emissions vehicle. This is down two per cent year-on-year.

“We need to have insulated our economy by diversifying into other sectors, not just EVs,” said Crombie.

According to a Wells Fargo analyst note, a 25 per cent tariff could increase the cost of Canadian-made auto parts by $830 to $3,400 per vehicle and jack up the price of cars assembled in Canada by $2,400 to $13,900. 

Ontario’s automotive sector accounts for $36 billion of the total $220.5 billion in provincial exports to the U.S. market, led by factories run by industry giants like Ford, GM, Stellantis, Toyota, and Honda, which collectively produced 1.54 million cars, pickups and SUVs last year.  

“Ontario needs to stay in the game, and you don't do that by changing course every time the wind changes direction,” said Kabbara. “The global auto industry knows where this is headed. What we're seeing now will look like tiny blips in the rearview mirror." 

Audrey Millet, spokesperson for Canada’s Minister of Innovation, Science and Industry François-Philippe Champagne, an architect of the national EV strategy, said the government was “closely monitoring” the potential impact of U.S. tariffs.

“We remain firmly committed to supporting the EV sector and stand ready to respond robustly to protect Canadian workers and businesses,” she told Canada’s National Observer.