THE REAL ECONOMY
Canada government initiatives support electric vehicle landscape
THE REAL ECONOMY | July 19, 2021
Global automotive brands have unleashed a flood of announcements over the last nine months about their intentions to either become fully electric vehicle (EV) manufacturers or broadly shift away from the traditional internal combustion engine (ICE). In Canada, a number of recent government initiatives aim to support such goals.
These announcements from original equipment manufacturers (OEMs) represent a significant change in the way they plan to manufacture vehicles—with companies planning to use new processes, machines and advanced technologies—as well as in what they require from suppliers, from battery cells to software to charging technologies.
MIDDLE MARKET INSIGHT
With the coming of electric vehicles, original equipment manufacturers are planning to significantly change the way they make vehicles.
The plans represent billions of dollars in investments globally, and some OEMs have laid out aggressive timelines to achieve a fully electrified fleet in under a decade. Volvo, for instance, expects its lineup will be fully electric by 2030, and Ford expects the same for its European models. BMW expects zero-emission vehicles to comprise at least 50 per cent of its sales by 2030. Audi announced that it will no longer develop entirely new ICE engines—though the company will update existing powertrains with the goal of being fully electric.
Growth in the EV market brings a range of new technological innovations, including smart vehicles, autonomous vehicle technology and much more. The expectations that consumers and businesses have for their vehicles are changing, at an accelerated rate and in dramatic ways that go well beyond simply replacing ICE engines with electric motors and batteries; the technological possibilities of EVs will affect the whole supply chain.
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Source: RSM Canada LLP
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