The Canadians will be walking soon. The production of cars slowed down
The Canadian government is encouraging residents to switch to hybrid cars, but it's almost impossible to buy them. Why have there been delays in releasing new cars?
Across the country, Canadians are experiencing a severe shortage of new cars. Shortages of computer microchips and other auto parts are thought to be the main reason for the delays. Deliveries are slowing and automakers can't keep up with production.
For example, Canadian resident Jesse Chiasson called a car dealership to buy a new car. But he was unable to do so. He had to pay $1,000 CAD to get in line. The salesman didn't say a specific purchase date but hinted that the car would be available in 2024.
Because of rising gas prices and global climate change, many Canadians want to buy hybrid cars.
The stoppage of production has a negative impact on factory workers and retailers:
- from January to September 2022, there were layoffs at auto plants;
- at the same time, working hours were reduced, resulting in lower wages;
- salespeople in car dealerships cannot sell goods, which also leads to layoffs, lack of commissions and pay cuts;
- re-training auto mechanics into electric car assemblers takes time.
New chip and auto parts plants are slow to get up and running, and it takes years for them to be fully operational.
This affects Canadian auto manufacturing, as well as workers and consumers in this country.
Honda Canada spokesman John Bordignon said serious global issues are still "very much a part of the process of new car availability and delivery."
Toyota Canada spokesman Michael Boulian said the company has been affected by global supply chain problems that have hit the entire auto industry.
Recall that in August Prime Minister Justin Trudeau met with German Chancellor Olaf Scholz, at which time representatives of Volkswagen and Mercedes-Benz signed agreements with Canada on a partnership in the supply of electric cars and parts.
