The brief lockout at Canada’s two biggest railroads was the most-read topic of the week. While the lockout lasted a little less than a day after the federal government intervened, it had the potential to cripple the industry. Meanwhile, BYD’s plan to enter Canada continued to garner interest in a big way.
Here's a quick rundown of those and the other stories that comprised our top five by reader interest:
1. Rail lockout
Canada’s two largest railways on Aug. 23 were preparing to restart operations after Prime Minister Justin Trudeau’s government stepped in to try to end a labour dispute that has stopped freight movement, including new vehicles and auto parts, across the country.
Labour Minister Steven MacKinnon asked the Canada Industrial Relations Board to impose binding arbitration on Canadian National Railway Co. (CN), Canadian Pacific Kansas City Ltd. (CPCK) and the Teamsters union. He also ordered the board to direct the parties to extend their current labour contract, and said the railways should resume operations “forthwith.”
2. BYD eyes Canada
BYD's entry into Canada might spell relief for buyers looking for affordable electric vehicles, but it could also have dire consequences for incumbent automakers trying to get their EV efforts off the ground.
“An entrant like BYD coming into Canada could be devastating for the composition of our current industry,” Robert Karwel, director of customer success for J.D. Power Canada’s data and analytics division told Automotive News Canada.
3. Dealers question EV investments
Canada’s auto dealers are rethinking their fixed operations as demand for electric vehicles softens and automakers limit or postpone production.
“Look at Audi dealers in the lower mainland of [British Columbia] and how many Q4 E-trons that are in stock. That car was supposed to be sold out for two years,” said Michael Wyant, COO of the Wyant Group in Saskatoon, which operates 19 dealerships in British Columbia, Alberta and Saskatchewan.
For example, Audi Richmond, south of Vancouver, listed 147 Q4 E-trons in stock, while Audi Kelowna in B.C.’s interior had 22. Both searches by Automotive News Canada were on Aug. 12.
“The bottom has really fallen out of that market,” Wyant said.
4. GM job cuts
General Motors is eliminating more than 1,000 jobs in its global software and services organization, according to a source with knowledge of the move.
The job cuts include about 600 employees at the automaker's Global Technical Center in Warren, Mich., near Detroit, the source said.
A GM Canada spokesperson confirmed to Automotive News Canada that the cuts include "a small percentage of our team at the Canadian Technical Centre, where we continue to employ over 1200 engineers."
5. Ford cancels 3-row EVs
Ford Motor Co. is again shifting its electrification strategy, canceling long-planned three-row electric crossovers and delaying its next-generation full-size electric pickup by 18 months as it dials down spending on full battery-powered products.
The automaker on Aug. 21 said the changes to its plans could cost up to $1.9 billion (all figures in USD), including a $400 million noncash charge related to canceling the crossovers that it previously had postponed from 2025.
Instead of those EVs, Ford now plans to build a family of hybrid three-row crossovers but didn't say where or when they would come to market. CFO John Lawler said the vehicles would offer a "range of propulsion options" but did not elaborate.
