Trump auto comments concerning for Windsorites, also for Americans, experts say

A professor at the University of Toronto says autoworkers in Windsor should be concerned about U.S. president-elect Donald Trump's recent comments that the United States doesn't need Canadian-made automobiles.

But Dimitry Anastakis says the remarks also reveal Trump's ignorance about the North American auto industry.

"Much of what he says is not grounded in reality," said Anastakis, a professor in the Rotman School of Management. 

"I mean, he kept saying, you know, 'We take 20 per cent of their cars,' but those are the cars that are built by American manufacturers or Japanese manufacturers in North America."

Trump told reporters at a news conference at Mar-a-Lago this week that Canada makes "20 per cent of our cars."

"We don't need that," he said. "I'd rather make them in Detroit."

But the North American auto sector is an integrated industry, Anastakis said.

"You know, there's lots and lots of parts and engines and cars that jump across the border two, three, four times before they are finally delivered."

Halting that cross-border trade would cause more headaches in Detroit and Dearborn, Mich., than in Ottawa, Anastakis said, because it's disruptive to automakers' carefully-laid-out plans. 

A professor of mechanical and automotive engineering at the University of Windsor said Canada's contributions to the North American auto sector could not be quickly or easily replicated south of the border.

That's particularly true of its tool, die and mold sector, Peter Frise said.

"Those are very specialized companies," he said.

"Many experts would suggest that our tool, die and mold sector is the best, or one of the best, in the world. …and it would be almost impossible to duplicate that elsewhere in less than a long time."

Canada is also a major producer of raw materials for cars and trucks, including aluminum, steel, and battery and electric vehicle components, Frise said. 

"I think Mr. Trump would do well to learn more about the automotive sector before he starts making ... statements like that," he added.

Anastakis said if Trump moves to reverse the trend of trade globalization, it could lead to the "disintegration of the North American space, which will drive consumer costs up tremendously."

"It'll perhaps impact the amount of vehicles and the choice of vehicles that Canadians and Americans are able to purchase," he said. "It will cause economic disruption."

Windsor autoworkers should be concerned by Trump's tariff threats because of their potential to disrupt Canadian production plans, he said. 

"That Stellantis plant, which is making the Dodge Charger, they're making both EV and ICE, and they're producing it for the whole continent," he said.

"What's to stop Stellantis from saying, 'You know what? It's too much of a risk. It's going to be too costly. Let's move this production elsewhere?'"