Sometimes - well, quite often really - I read an article and think, "Yeah, that's exactly what I was thinking!" One such article appeared in this weekend's Globe and Mail, and concerns the Canadian automotive industry.
For decades, Canada has been in what the article cheekily calls an "abusive relationship" with American automakers (i.e. car companies like Ford, GM, and technically European-owned but still very American Stellantis). Time after time, these companies go through bad patches and the Canadian government has to dig into its increasingly empty pockets to come up with billions of dollars in bailouts, in the full knowledge that they will have to do the same thing all over again a few years later.
Time after time, Canadian governments at all levels have put serious money into sweeteners - bribes, basically - to encourage behemoth American companies (and, to a lesser extent, car companies from other countries) to invest in Canadian factories, parts production, battery plants, etc. This kind of "corporate welfare" is endemic, and nowhere is it quite so pervasive as in the auto industry.
And now, of course, the whole industry is subject to the whim of one person, Donald Trump, and you know he's not going to do us any favours. So, here we go again, hand into the government pocket.
Now, I get it, the car industry is a big employer, particularly in Ontario, and that is probably the single biggest reason for all the billions in corporate welfare paid out over the years (that and the power of the auto sector unions). It directly employs about 130,000 people, but up to 600,000 in total by some counts when including the supply chain, dealerships and other related industries. Even this pales into insignificance against other aggregated industries and services, but it is admittedly a large and important industrial sector.
Specifically, it employs a lot more than the 14,000 or so employed in the farming of oilseed and grains, which is largely why the plaints of the Prairie provinces about retracting the Canadian tariffs on Chinese EVs so that China will retract its tariffs on Canadian canola are going unheard (another reason, of course, is how the Trump administration would react to Canada falling out of lockstep with US tariffs on China). The whole question of whether Canada should be preferring the USA over China, and whether it should be blocking Chinese EVs in particular, is a thorny one, deserving of its own analysis (and which I have looked at elsewhere).
The other thing the Globe article touches on is another question I have been asking for some time: why doesn't Canada have its own car production industry? If Korea can do it, and Japan and Sweden, why can't we? The Canadian auto sector and its unions are constantly reminding us that we have all sorts of expertise and a skilled well-trained workforce here. Why, then, are they all in service to American overlords?
It's partly inertia - that's the way it's always been for the last hundred-plus years, and it's hard to break from that. The whole industry has been developed around the north-south integration and it is (or was) highly efficient. Also, as we now know to our cost, those American overlords are fickle, and really don't care about Canadian workers. They would up sticks and move at the drop of a hat if circumstances dictate, as we have just seen with Stellantis. And, more to the the point, they are in thrall to would-be dictator Trump, and will bend to his will with nary a thought for a hundred years of shared industry development.
Paradoxically, Canada buys about two million cars a year, almost exactly the same number as it assembles, but the cars it makes are almost all sent to the US market, and most of the cars it buys come from the US. Which seems like globalizion madness, except that ther are compelling commercial reasons why that happens. Economies of scale, yadda yadda. (Remember that crazy graphic of how a vehicle produced in North America crosses the border multiple times?)
So, if now is not the time to pursue a Canadian-owned domestic automotive industry, then when? Actually, it has been tried, and failed miserably. "It's just not possible to build a car company from scratch" was the conclusion. The last time that happened was Elon Musk's Tesla, and he had billions of dollars of capital behind him.
Imagine if all those billions in corporate welfare paid out to already wealthy American companies had been ploughed into developing a domestic industry? Well, it wasn't, and so here we are, beholden to our hateful American masters. Such a shame.