Ottawa has asked the governments of South Korea and Germany, two countries with companies bidding to build the Canadian navy’s next submarine, to facilitate auto industry production pledges in Canada as part of the pitches, a source familiar with the matter said.
The Globe and Mail is not identifying the source, who was not authorized to speak publicly about the matter.
Canada last year narrowed its search for new submarines to two contenders: South Korea’s conglomerate Hanwha and the German-Norwegian bid that includes defence contractor ThyssenKrupp Marine Systems.
Any sub deal will be a government-to-government arrangement, the source said, saying Canada has asked the South Koreans to arrange a commitment for Hyundai to establish production in Canada and for Germans to beef up Volkswagen-related auto industry production here, the source said.
The contract for up to 12 submarines could be worth tens of billions of dollars.
Hyundai does not have auto production facilities in Canada. Volkswagen has committed to building an electric vehicle battery gigafactory in St. Thomas, Ont., through its PowerCo subsidiary.
nathingz on
Love that we are taking these deals more seriously now. Production in Canada, now.
Rabidsenses on
Canada making crossover demands for other sectors for large potential procurement deals – so much yes to this! We’re not used to hearing this, or not until after the deal has been penciled in anyway.
Maddog_Jets on
Smart!
We need to be assertive yet still professional and respectful like this going forward.
Regardless of your political affiliation, you have to give credit where it’s due.
12CylindersSoundBest on
OEM’s might find Canada more appealing than ever; federal and provincial governments have done an extraordinary job union smashing and slitting the throat of collective bargaining. Flooding the country and job market with foreign competition to cut wages and burn down the value of Canadian’s training, education, and licensing.
A developed country with a high cost of living, a broken social contract, in dire need of employment partners that can also guarantee the extermination of the public’s leverage on said employment.
I’m sure it’ll help our productivity greatly 👍🏻
Forward-Count-5230 on
I’ll be honest but this is pretty wishful thinking. Germany’s auto plants are getting crushed and if they moved some production to Canada there would be massive backlash politically.
CaptainDaddyDom on
Can we buy six of each? Or seven?
CaptainDaddyDom on
Does China make subs?
self-fix on
Hyundai just announced they would produce 30,000 Boston Dynamics Atlas robots a year to automate the Georgia EV factory, so anything they build in Canada will be in lock step with their automation efforts. Not sure if that’s something the government is hoping for.
Born_Opening_8808 on
Nice idea but we should probably get the best sub for what need and delivered the quickest
-Yazilliclick- on
If we want this we should adopt EU safety rules here so that these companies have better options, and thus more incentive, to put production here that can sell elsewhere. It’ll also help open our markets up to a lot more models and less ties to US production.
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Ottawa has asked the governments of South Korea and Germany, two countries with companies bidding to build the Canadian navy’s next submarine, to facilitate auto industry production pledges in Canada as part of the pitches, a source familiar with the matter said.
The Globe and Mail is not identifying the source, who was not authorized to speak publicly about the matter.
Canada last year narrowed its search for new submarines to two contenders: South Korea’s conglomerate Hanwha and the German-Norwegian bid that includes defence contractor ThyssenKrupp Marine Systems.
Any sub deal will be a government-to-government arrangement, the source said, saying Canada has asked the South Koreans to arrange a commitment for Hyundai to establish production in Canada and for Germans to beef up Volkswagen-related auto industry production here, the source said.
The contract for up to 12 submarines could be worth tens of billions of dollars.
Hyundai does not have auto production facilities in Canada. Volkswagen has committed to building an electric vehicle battery gigafactory in St. Thomas, Ont., through its PowerCo subsidiary.
Love that we are taking these deals more seriously now. Production in Canada, now.
Canada making crossover demands for other sectors for large potential procurement deals – so much yes to this! We’re not used to hearing this, or not until after the deal has been penciled in anyway.
Smart!
We need to be assertive yet still professional and respectful like this going forward.
Regardless of your political affiliation, you have to give credit where it’s due.
OEM’s might find Canada more appealing than ever; federal and provincial governments have done an extraordinary job union smashing and slitting the throat of collective bargaining. Flooding the country and job market with foreign competition to cut wages and burn down the value of Canadian’s training, education, and licensing.
A developed country with a high cost of living, a broken social contract, in dire need of employment partners that can also guarantee the extermination of the public’s leverage on said employment.
I’m sure it’ll help our productivity greatly 👍🏻
I’ll be honest but this is pretty wishful thinking. Germany’s auto plants are getting crushed and if they moved some production to Canada there would be massive backlash politically.
Can we buy six of each? Or seven?
Does China make subs?
Hyundai just announced they would produce 30,000 Boston Dynamics Atlas robots a year to automate the Georgia EV factory, so anything they build in Canada will be in lock step with their automation efforts. Not sure if that’s something the government is hoping for.
Nice idea but we should probably get the best sub for what need and delivered the quickest
If we want this we should adopt EU safety rules here so that these companies have better options, and thus more incentive, to put production here that can sell elsewhere. It’ll also help open our markets up to a lot more models and less ties to US production.