Brian Kingston, chief executive of the Canadian Vehicle Manufacturers' Association, has made it clear that Canada's auto industry is inextricably linked to the United States. In a recent interview with Financial Post's Larysa Harapyn, Kingston stated unequivocally that diversification is not a viable option for the automotive sector. “If we do not have U.S. access, we do not have an auto industry,” he said. “That’s just the bottom line, so we really need to get this relationship right.”
The remarks underscore the deep integration of the North American automotive supply chain, where components and vehicles cross the border multiple times during production. Kingston emphasized that without seamless access to the U.S. market, Canada's automotive manufacturing sector would face an existential crisis. The industry supports hundreds of thousands of jobs across the country, from assembly plants to parts suppliers.
Critical Dependence on U.S. Market
Kingston's comments come amid ongoing trade discussions between Canada and the United States. The Canadian Vehicle Manufacturers' Association represents major automakers including Ford, General Motors, and Stellantis. According to Kingston, the auto industry is a prime example of why Canada must prioritize its trade relationship with the U.S. over other diversification efforts.
“Diversification for auto is not an option,” he reiterated. The highly integrated nature of the industry means that even minor disruptions to cross-border trade could have severe consequences. Kingston called for policies that ensure the continued free flow of goods and components between the two countries.
Industry at a Crossroads
The Canadian auto industry has faced numerous challenges in recent years, including supply chain disruptions, the shift to electric vehicles, and global competition. However, Kingston stressed that the most pressing issue remains access to the U.S. market. He urged policymakers to focus on strengthening the bilateral relationship rather than pursuing alternative trade partners.
“We have built an industry that relies on integration with the United States,” Kingston said. “That is not something we can change overnight, nor should we want to. The U.S. market is our natural partner, and we must work together to ensure mutual prosperity.”
Kingston's warning serves as a stark reminder of the stakes involved in trade negotiations. As Canada and the U.S. continue to discuss automotive trade rules, the future of Canada's auto industry hangs in the balance.
