In a recent Globe & Mail column by Adam Radwanski, Flavio Volpe, President of the Auto Parts Manufacturers’ Association, made the case for a Canadian-owned automaker.
As noted by Volpe, even if recent auto sector disputes with the U.S. are addressed, we should not go back to the status quo, saying, “We should never go back to the thing that I think people across the spectrum in this country criticize Canada for, which is lack of national ambition.”
Mr. Volpe is 100% correct.
His point regarding national ambition is similar to a point I made in a recent column on the merits of supporting Canadian aerospace company NordSpace: “It’s time for Canada to think big. We have the people, the technology, and the wealth to be a robust military power capable of defending ourselves and assisting our allies. All we lack is the mindset.”
Mr. Volpe is demonstrating the kind of thinking Canada needs, thinking that moves beyond the ‘can’t do’ attitude that has often stifled innovation, and moves toward Canada stepping into our full potential as a nation.
Civilian & military production
With this in mind, there is a strong case to be made for this country getting behind a Canadian-owned automaker. However, I believe that case would be strengthened further if there were a robust military component.
Put another way, if the government were to help a Canadian-owned automaker get started, it should also produce military equipment, and should commit to training a portion of its workforce on both civilian and military production.
This would bring three benefits:
First, overlapping production uses could increase efficiency in the defence sector. For example, Canadian defence company Roshel makes Senator armoured vehicles on the Ford F-550 ‘Super Duty’ chassis. A Canadian automaker could build civilian automobiles on a chassis pre-planned for alternative military use. This would make it easy to switch production lines in case of war or large military orders.
Second, cross-training workers in both civilian and military production would provide Canada with an ever-growing base of workers skilled in military production. This would benefit the wider defence industry and make it easier for Canada to attract new military investment, including from allied companies, to build factories on Canadian soil.
Third, just as companies like Boeing benefit from government military contracts when their civilian business goes through periods of decline, so would a Canadian automaker. Rather than workers being laid off in large numbers during a downturn, the government could increase military orders to help offset lower domestic demand, and then reduce those orders when consumer demand returns. This would also make support for a Canadian automaker more politically saleable, given that the Canadian public would be getting a direct return on investment in the form of enhanced military strength.
This is a moment when Canada needs a national vision that enhances our military strength and preserves core domestic manufacturing capacity and employment. Rather than viewing this as an insurmountable challenge, we should view it as an opportunity, an opportunity to efficiently utilize our skilled workforce and entrepreneurial citizens to become a more secure and prosperous country.
A Canadian automaker with both civilian and military production lines would be well aligned with this national vision.
Spencer Fernando
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