Electric vehicle chargingClick image to enlarge

US president Joe Biden’s controversial electrical vehicle (EV) incentive plan, which could prove disastrous for Canada’s fledgling EV assembly ambitions, has been left teetering in uncertainty following the loss of support from a key Democrat senator yesterday.

West Virginia Sen. Joe Manchin, whose vote is critical to passage of the bill in a divided US Senate, confirmed yesterday he can’t support the $1.75-trillion Build Back Better bill.

The proposed legislation calls for tax credits worth up to US$12,500 on US-assembled electric vehicles built with union labour. This includes US$4,500 for union-made vehicles and US$500 for batteries made in the United States. Vehicles would need to be assembled in the US by 2027 to qualify for the full US$12,500 amount.

If approved in its current form, the bill would result in a 34 per cent tariff on electric vehicles assembled in Canada. Canada has had numerous meetings with US officials and warned it would launch retaliatory tariffs and suspend certain elements of the US-Mexico trade agreement (USMCA) if the tax credit plan went ahead. Deputy prime minister and Chrystia Freeland and trade minister Mary Ng recently claimed the plan violates the USMC in a letter to US Senate leadership.

Canada had warned senators that it would launch a barrage of retaliatory tariffs and suspend certain elements of the U.S.-Mexico-Canada trade agreement if the tax-credit plan went ahead.

Tesla and foreign automakers operating in the United States do not have unions representing assembly workers and are also opposed to the plan, which has the support of the United Auto Workers union. They fear it would disproportionately benefit Detroit's Big Three automakers – Ford, GM, and Chrysler parent Stellantis NV - which assemble their U.S.-made vehicles in union-represented plants.

Biden wants 50% of new U.S. vehicles to be electric or plug-in electric hybrid by 2030. His administration is expected to finalize tougher new vehicle emissions rules through 2026.

Canada, Germany form energy partnership

Canada has entered into a formal partnership with the government of Germany to collaborate on energy policy to spur private sector engagement, investment and trade.

Cy-Laser opens tech centre for Canada, US customers

Cy-Laser America, a subsidiary of Cy-Laser S.r.L. of Schio, Italy, has opened a Technology Center in Sterling Heights, MI, to service customers in North America.

ArcelorMittal to invest $70 M in Quebec steel production facilities

Steel production manufacturer ArcelorMittal Long Products Canada plans to invest close to $70 million by 2020 in its Contrecoeur, QC, facilities.

Heroux-Devtek sets up new Ontario manufacturing plant

Heroux-Devtek is opening a new aerospace manufacturing facility in Cambridge, ON. The facility will support the company's long-term contract to supply Boeing with complete landing gear systems for the B-777 and B-777X aircraft, for which deliveries are scheduled to begin early in 2017.

NS steel and aluminum shops receive nearly $2.5 M to modernize

Six Nova Scotia steel and aluminum companies have been given federal funding totaling $2,479,501 to modernize equipment and infrastructure and adopt advanced machinery, robotics and automation.

Advanced manufacturing gets major financial boost

Ontario manufacturers will soon be getting support for advanced manufacturing practices through a newly announced Advanced Manufacturing Fund.

Seaspan has doled out $1B in shipbuilding contracts

Seaspan Shipyards has to date awarded more than $1 billion in contracts to 140 Canadian companies supporting design and construction of two Joint Support Ships (JSSs) for the Royal Canadian Navy.

Guidebook for manufacturers crossing the border

A group of manufacturing industry associations has created a guide for business travellers crossing the U.S.-Canada border for work in the manufacturing supply chain that's critical to regional economies in both countries.

Ontario college expands advanced manufacturing facility

Canadore College in North Bay, ON, has opened the doors to its ICAMP 2.0 facility, an expansion to its Innovation Centre for Advanced Manufacturing and Production (ICAMP).

Ottawa invests $12 M in Manitoba projects

The federal Minister of International Trade Diversification, Jim Carr, has announced that Ottawa will be providing $12 million in funding for a range of projects in Manitoba.

GTA’s most forward-looking employers recognized

The Globe and Mail has published its “GTA’s Top Employers 2019” list, and a number of companies in industries of relevance to Shop Metalworking Technology readers have made the cut.

Federal development dollars support three Montréal SMEs

The Government of Canada is providing three Greater Montréal companies with a total of more than $1.9 million to acquire machinery and improve productivity.

TransCanada supports welding camps for kids

TransCanada Corp. has partnered with the CWA Foundation to support the welding organization's Mind over Metal welding camps for students.

Loonie drops to two-month low

The Canadian dollar dropped to its lowest level since January 4, falling 0.7 per cent to $1.3439 versus the U.S. dollar and reducing its climb for 2019 to 1.5 per cent.

Advancing science with waterjet cutting

Students of the engineering physics program at the University of British Columbia (UBC) in Vancouver, BC, are highly focused on advancing science through new, high-tech inventions, and are using an OMAX waterjet technology to fabricate the precision parts that bring student creations to life.

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