Toronto, April 14 (BUS): Canada’s accelerating timetable to embrace all-electric vehicles (EVs) is threatening some auto suppliers and auto mechanics, as the latter pins hopes on key legislation to adapt to the changing needs of the industry.
Last month, Justin Trudeau’s liberal government set a mandatory target for all new light-duty cars and passenger trucks to be zero-emissions by 2035, from an earlier target of 2040. Recent investments by General Motors and Ford Motor in their Canadian units to boost primarily electric vehicles give The parts industry has some hope for the near future, Reuters reports.
“Where there is a risk to parts manufacturers they make parts for internal combustion components such as engines and transmissions,” said Flavio Volpi, president of the Auto Parts Manufacturers Association.
Volpi noted that these parts will disappear in the coming years, and there are concerns that companies will not be able to adapt, even if they remain suppliers after new competition enters the market.
Auto parts is Canada’s fifth largest export industry, employing nearly 71,400 workers as of January, according to official data. Volpe remains confident that many well-established parts makers will be favored, given their track record.
Industry groups say the switch to electric vehicles is a bigger threat to auto mechanics, who may struggle unless the “right to fix” bill is passed in Canada.
The bill was reintroduced to Parliament in February, after it was murdered in the House of Commons in August 2021 ahead of the federal election. The bill would force major automakers to share the parts, software, and training used to repair products.
Failure to pass the bill could lead to the closure of many mechanics and the loss of significant jobs in the sector, said Jean-Francois Champagne, president of the Federation of Automotive Industries of Canada, which represents supply chains and aftermarket car service.
Nearly 109,816 Canadians work in the auto repair and maintenance industry, according to a 2022 report from Statistics Canada.
The transition to electric vehicles laden with technology that allows greater automation and software updates over the air could result in as many as 53,707 job losses by 2051 in a worst-case scenario, according to Canada’s Conference Board.
Fight for data
Currently, computers in electric car makers like Tesla are linked in a “closed ecosystem,” making them inaccessible to typical mechanics.
“If you had a Tesla today, Tesla would pretty much determine where you go to service your car, it would determine what parts you would wear and how much you would pay,” Champagne said.
Tesla did not provide an immediate comment. But in 2020, Tesla urged its customers in Massachusetts to vote against the updated “right to repair” legislation, arguing that it would raise security concerns.
She added that Tesla already has an open source philosophy for much of its patented intellectual property. However, Massachusetts voters approved the Right to Repair Act.
Jamie Keeler, owner and sole mechanic of Keeler Automotive in Ontario, said Canadian legislation will ensure customers have the freedom to choose who repairs their vehicle.
“If you’re a licensed mechanic, you should be able to fix anything on the road, and have access to software to do that,” said Keeler, who delivers an average of 50-60 cars a week.
Keeler, who has been a licensed mechanic for three decades, said that if a “right to repair” petition was made, he would be happy to sign or vote for it.
The United States actually passed a “Right to Repair” policy in July of 2021, as part of a comprehensive executive order signed by President Biden. With the contents of the Canadian bill already formed, and the previous subsidy set up, it will be the biggest obstacle for automakers fighting to crush it in the coming months.
The Alliance for Automotive Innovation did not provide immediate comment when asked about the Canadian “right to repair” bill.
“The automakers want to control the data in the car, because that’s what will be monetized on the road, as your cell phone did,” Champagne said. “So, it’s a battle for control of the data, and they’ve been very active fighting that legislation everywhere they can.”