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Electric vehicles are a 'generational opportunity': GM Canada VP

A London-area manufacturer is looking to benefit from U.S. legislation intended to boost electric vehicle production.

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A London-area manufacturer is looking to benefit from U.S. legislation intended to boost electric vehicle production.

Cami Assembly in Ingersoll, now retooling to start production of fully electric cargo vans, will benefit from U.S. government incentives for electric vehicle purchases in that country, said David Paterson, vice-president of corporate and environmental affairs at GM Canada.

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“Change is now. It is happening quickly. This is the biggest generational opportunity for Canada in my lifetime,” said Paterson of the industry shift to electric vehicles, and how it impacts Canadian manufacturers.

“There is an enormous opportunity for us. We have an opportunity to do really well in Canada.”

The Inflation Reduction Act in the U.S. offers US$7,500 in incentives to buyers of an electric vehicle, as long as the vehicle and most of its parts, including batteries and chemicals, are from North American suppliers.

In addition, the U.S. and Canada are offering incentives to produce electric batteries here, meaning there will be European and Asian automakers building plants to supply manufacturers, and that may mean sales for the Southwestern Ontario auto parts supply chain

“Canadian-made vehicles qualify for that incentive,” Paterson said. “There are massive incentives if you build a factory in the U.S.  . . . and Canada is no slouch either.”

The U.S. post office is looking at a US$3-billion buy of EV delivery vehicles for which GM and Cami will compete, he said.

“That is a very big whack of support from the post office. The U.S. government is buying electric vehicles for cargo delivery; they need to be leaders.”

Paterson was speaking Wednesday at Manufacturing Matters, an industry conference that drew about 500 from to the Lamplighter Inn.

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He was upbeat about the prospects for GM and Cami, as the automaker has made a commitment to electrify its entire fleet by 2035 and the Ingersoll plant is the first in Canada to assemble a fully electric vehicle.

“We are confident this will have us working as fast as we can. I think we will be hiring new people eventually,” Paterson said.

GM spends about US$3 billion with Canadian parts makers for its U.S. plants.

The conference included a panel discussion on talent acquisition, the lingering impacts of COVID, manufacturing initiatives and cyber security.

“The Manufacturing Matters conference is a reminder of the significant economic impact of manufacturing in southern Ontario,” said Kapil Lakhotia, chief executive of the London Economic Development Corp. that organized the event.

“It was great to hear about upcoming investments in technology and supply chains around electric vehicles. The auto industry is changing rapidly and there are new opportunities for many of our parts suppliers in the London region.”

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Cami will assemble the BrightDrop Zevo 600, a large cargo van, and a smaller version, the EV410. Both will travel about 400 kilometres on a charge. Production will begin in December and ramp up in 2023.

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Cami has just a handful of workers, as well as skilled trades working on the retooling of the plant. In December, about 700 workers are expected to be recalled and the balance of the workforce will return throughout 2023.

The plant employs about 1,500.

The BrightDrop already has landed Hertz, Walmart, FedEx, Verizon and Merchants Fleet, a fleet management company in the U.S., as customers for the cargo vans.

In his address to the conference, Paterson laid out GM’s EV strategy, specifically detailing its Ultium battery technology and the different engines and vehicle platforms it will support.

He also laid out how Canada is well positioned, through its mining sector, to supply elements and minerals such as nickel, lithium and cobalt needed for battery production across North America. GM has announced a plant in Quebec to process such minerals.

GM also has forecast its batteries will last 20 years and can be recycled after about 15 years.

GM has battery plants in Ohio, Tennessee and Michigan and “another we don’t have the address for and we need more,” Paterson said.

But he declined to comment on whether Ontario, with its first EV commercial cargo plant already being retooled, is in line for more GM investment.

ndebono@postmedia.com

Twitter.com/NormatLFPress

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