The federal and Ontario governments announced on Thursday they will each spend $250 million to help Ford Canada mass produce electric vehicles in Oakville, Ont.
Here’s what you need to know:
1. Is this new money?
Ford first announced in September that it would spend $1.95 billion in its Canadian plants, including $1.8 billion toward the production of electric vehicles in Oakville, Ont. over the next decade or so as part of a three-year deal with union workers announced last month.
At the time, news reports suggested that some of the cash would come from government. But until today neither the company, government nor workers’ unions officially broke down the number.
2. Why electric vehicles?
Canada has historically lagged other auto exporters when it comes to electric vehicles. In April, the International Council on Clean Transportation noted that Canada produces only one plug-in vehicle model, the Chrysler Pacifica, and that the country’s electric vehicle production is 80 per cent lower than the global average.
Amid competition from plants in the Southern U.S. and Mexico, Canada has been vying to stay competitive in getting new, cutting-edge contracts from the Detroit Three automakers.
3. Why Oakville?
The Ontario government is quick to point out that Ontario is the only place in North America where five major automakers build vehicles — Fiat Chrysler, Ford, General Motors, Honda and Toyota — as well as truck manufacturer Hino. As for selecting the Oakville plant, Unifor president Jerry Dias has said that recent union negotiations targeted Ford because the jobs in its Oakville plant were most precarious amid ending vehicle production contracts that, until now, had no replacement.
Ford also already has a connectivity and innovation centre in the Ottawa suburb of Kanata, which has a history as a Canadian innovation cradle.
Canadian companies also have supply chain access to mining companies that produce the nickel and other metals used to make the batteries for electric vehicles.
4. Political will
In addition to pressure from this year’s high-profile labour negotiations, lawmakers have also been looking for ways to promote economic investment in the wake of COVID-19 and an economic downturn. The Sept. 23 speech from the throne highlighted action against climate change as “a cornerstone” of a plan to create a million jobs across the country.
The government has already committed more than $300 million to create a network of fast-charging stations for electric vehicles across the country. And it is providing incentives of up to $5,000 off the price of purchasing or leasing electric and hybrid vehicles.
5. How Canada’s automakers stack up
Ford is not the only company competing to employ Canadian engineers, as automakers increasingly look toward cutting-edge technology to set themselves apart. Tesla is working with Dalhousie University to produce batteries, while General Motors tests autonomous and electric vehicles in Markham Ont., and is working on doing the same in Oshawa, Ont.
Canadian auto-parts manufacturers Magna International and Linamar have also made investments in high-tech products, and BlackBerry Ltd. has an autonomous vehicle innovation centre in Ottawa.
In the startup scene, Canada Pension Plan Investment Board has invested in an autonomous driving startup, and Quebec City is home to autonomous driving startup LeddarTech.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
