Declining Canadian Auto Sales –A Blessing in Disguise

According to a Statistics Canada report released this month, new auto sales fell 2.3 per cent in August to 137,937, the third straight monthly decline. The drop is blamed on falling North American-made passenger car sales, which fell 6.8 per cent, while overseas-built car sales increased 0.4 per cent. These poor showings have provoked imminent, massive job cuts in the Canadian auto industry. GM and Chrysler alone plan thousands of layoffs over the next two years at Canadian assembly and parts plants.

Canada exports more than 80 per cent of its vehicle production and 60 per cent of parts are sent to the U.S. In September, U.S. auto sales plunged 27 per cent from last year’s September sales. Thus, Canada’s auto industry is in further distress because the U.S. economic crisis has injured Canadian vehicle sales there.

With both a looming economic crisis and threat of global warming on Canadian’s minds, it’s hard to have much sympathy for North American auto manufacturers. However, this seemingly bad news about the car industry may provoke a solution that could ease the pain of the economy, as well as the environment. That being, the development of a Canadian sustainable auto industry.

Sustainability and global warming were definitely hot topics during the October pre-election party debates, as evidenced by the litany of fiery exchanges between the five party leaders. Many of which expressed a similar reconciliation of economic and environmental concerns using the possibility of developing sustainable technologies.

“The Conservatives fail to act on the environment,” said NDP leader Jack Layton. “Let’s stimulate new green sectors, which will create jobs,”

“The climate crisis represents an economic opportunity to develop new technologies,” said Green Party leader Elizabeth May.

These party leaders’ statements weren’t just a bunch of hot air.

The massive void left by declining Canadian car sales and future industry layoffs presents a golden opportunity for the Canadian government to seriously consider promoting Canada as a cutting edge leader in sustainable development.

What the Canadian government could do is place funds into projects that will explore and develop new, sustainable technologies. Optimally, these would be directly related to the transport industry (i.e. hydrogen fuel cell cars, hybrid cars, electric cars).

Promoting these kinds of vehicles nationally and exporting them internationally, would not only benefit the environment, but also, serve to strengthen Canada’s GDP and its economy.

The Canadian government’s venture into sustainability would perhaps, not only redeem the Conservative Party internationally for a very poor Kyoto showing, but also, provide Canadians with hope for their economy and their environment.