Canadian giant Magna says it is open to manufacturing Chinese vehicles here
It’s likely only a matter of time before Chinese-brand vehicles are imported and sold in Canada. In fact, some might even be manufactured right here.
Chinese giant BYD is exploring the possibility of building a vehicle plant in Canada, as reported by Le Journal de Montréal in March. For its part, Stellantis has reportedly begun discussions to assemble Chinese electric vehicles from the Leapmotor brand (in which it holds a stake) at its plant in Brampton, Ontario, according to reports in April by Bloomberg and Automotive News.
Another name has now been added to the list: Magna International. The Canadian multinational, based in Aurora, Ontario, is one of the world’s largest automotive suppliers and contract manufacturers. Its CEO, Swamy Kotagiri, recently told The Detroit News that the company is open to partnering with a Chinese automaker to produce vehicles in Canada, though he cautioned that such an agreement would need to be very long-term.
Magna hopes to capitalize on the expansion plans of Chinese manufacturers not only here, but also in Latin America, Europe, Australia, and elsewhere. It already has a strong presence in China, with revenue of approximately 5.5 billion U.S. dollars (7.7 billion Canadian dollars), Kotagiri noted. Its joint venture, BAIC BluePark Magna Automobile Co. Ltd., assembles BAIC’s Arcfox-branded electric vehicles, including the T1 compact SUV.
Let's not forget the XPeng G6 and G9, two Chinese models that Magna manufactures under contract at its plant in Graz, Austria, for the European market.
“They (the Chinese automakers) know us now. We manufacture for them in China, so we’re familiar with their systems,” Magna’s CEO emphasized. “We’ve been working with them for some time, and we believe this will give us an advantage in continuing this partnership elsewhere, wherever they decide to go.”
While the arrival of Chinese electric vehicles in Canada seems to appeal to many consumers, according to various polls, it does not sit well with automakers and dealerships already established here, nor with Ontario Premier Doug Ford, who has called for a boycott. The same goes for the U.S. government, which is continuing its trade war with Canada and is giving the strong impression that it does not want to renew the USMCA.
As we recently reported, a proposed bill would even aim to prevent any Chinese-made connected vehicle from entering the United States through its borders, even if only for a single day. In other words, tourists and businesspeople who want to travel to the United States from Canada or Mexico would be stopped at border crossings if they are traveling in a vehicle designed or manufactured in China, or even one of any Chinese brand.
