Industry Minister Mélanie Joly shared the initial three objectives for Ottawa’s auto task force
EDITOR’S NOTE: This article originally appeared on The Trillium, a Village Media website devoted to covering provincial politics at Queen’s Park.
Industry Minister Mélanie Joly stated that it’s “good news” that Stellantis has transferred its equity in an Ontario manufacturing plant to LG Energy Solution as the federal auto task force is preparing to meet “in the coming weeks.”
The minister visited Guelph, Ont., on Friday to promote Prime Minister Mark Carney’s new auto strategy, designed to help Canada establish itself as an “auto nation” while managing the effects of the trade conflict with the United States.
This strategy features more than $3 billion in federal funding aimed at helping the auto industry “adapt, grow and diversify into new markets,” along with a “work-sharing grant” intended to support workers and prevent layoffs. It also rolls back the electric vehicle (EV) mandate from Justin Trudeau’s government, which would have required 100 percent of cars sold in Canada to be electric by 2035, replacing it with an incentive program and investments in an EV charging network.
As part of this plan, the federal government is establishing an auto task force, first announced by Joly earlier this year at Queen’s Park alongside Premier Doug Ford. The task force aims to tackle industry concerns following a deal with China that could see up to 49,000 EVs from that region enter Canada at lower tariff rates.
Details about the task force are still sparse; Joly’s office informed Village Media that it will consist of a small group focused on coordinating efforts to protect and expand the auto sector. It’s unclear who will participate in this task force, but a spokesperson noted that Joly has been in regular communication with Ford and Unifor President Lana Payne.
On Friday, Joly laid out three goals for the task force – starting with plans to “build the 2029 Honda Civic in Canada,” while also securing future production of Toyota RAV4 and Lexus models domestically.
The second goal focuses on Ingersoll, Brampton and Oshawa, which have experienced closures or reduced shifts; it aims at “bringing production home.” Lastly, the federal government intends to attract new partners for establishing auto plants within Canada.
The third goal arises as European American automaker Stellantis sells its 49 percent equity stake in Next Star Energy Inc., a joint venture aimed at constructing a multi-billion-dollar battery manufacturing facility located in Windsor, Ont.
The other partner involved in this joint venture was South Korean-based LG Energy Solution, which now assumes complete ownership of Next Star. In a statement released by Stellantis, they described this transition as a “mutually agreed strategic decision” between both shareholders and confirmed that Stellantis would continue procuring battery products from LG.
Concurrently, Stellantis has indicated it will keep advancing its electric vehicle development “at a pace determined by demand rather than command.” Stellantis CEO Antonio Filosa mentioned that they are undergoing a business “reset” reflecting “the cost of overestimating the pace of energy transition which distanced us from many car buyers’ real-world needs.”
Stellantis paused operations at its Brampton plant last February after U. S. President Donald Trump announced tariffs on vehicles along with steel and aluminum imports. At present, the automaker is expanding its presence in America through a $13-billion investment.
Ford expressed no concern regarding Stellantis’ sale of shares in Next Star when he told reporters on Friday that “I think it was a good business decision, to be frank with you.”
The federal government allocated over $117.7 million to Stellantis for both Brampton and Windsor plants back in 2025; there were commitments from them ensuring production continues at Brampton assembly until 2035 while maintaining around 4,475 full-time positions across Canada among other agreements.
Joly previously stated that they expect returns from Stellantis along with other automakers if they breach their contracts or cease production within Canada.
On Friday as well, Joly seemed unfazed by Stellantis’ exit from Windsor’s battery plant project stating LG’s acquisition of Next Star is “really good news” indicating LG is committed long-term.
“We will invest in those who invest in us,” Joly remarked. “And what do I mean by that? We just signed a partnership with Korea on auto manufacturing last week. What are we seeing this week? LG is buying out Stellantis to invest more in Canada. Good news.”
Meanwhile, Conservative Party members are urging Liberals to lower taxes on severance packages for employees laid off at GM’s Ingersoll plant. They argue through correspondence directed towards Federal Finance Minister François-Philippe Champagne that “mandatory withholding can leave (workers) taking home tens of thousands less than what they’re truly owed.”
MP Arpan Khanna representing Ingersoll shared feedback from workers claiming over half their payouts were withheld due for taxes.
“These workers have called me saying it feels like they’re being kicked down while they’re already down,” he relayed during discussions Monday.
Unifor Local 88 representing GM staff mentioned they couldn’t verify these claims since payouts vary based on individual roles held within GM.
A spokesperson for Champagne’s office said they’re collaborating with unions and stakeholders aiming towards introducing measures beneficial for workers without implementing tax policies affecting pay rates directly.
“Taxes apply on earned income including severances-this isn’t novel policy,” spokesperson John Fragos emphasized.
“What’s more important is separating specific taxes without uniformly adjusting across all incomes would strip vital governmental tools impacting responses toward crises we face today undermining our industrial advantages overall.”
“Not only does this represent poor policy-making but it’s political malpractice,” Fragos added.
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A spokesperson for Champagne’s office said they’re collaborating with unions and stakeholders aiming towards introducing measures beneficial for workers without implementing tax policies affecting pay rates directly.
“Taxes apply on earned income including severances-this isn’t novel policy,” spokesperson John Fragos emphasized.
“What’s more important is separating specific taxes without uniformly adjusting across all incomes would strip vital governmental tools impacting responses toward crises we face today undermining our industrial advantages overall.”
“Not only does this represent poor policy-making but it’s political malpractice,” Fragos added.
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