For about a year CTH has predicted Chinese auto manufacturers BYD and GEELY would take over shuttered auto plants in Canada. Specifically, six months ago, against the backdrop warning of Stellantis, Toyota and Honda telling the Canadian government that without the USMCA they would shift auto production to the USA, CTH predicted BYD and GEELY would make moves on those closed facilities.
The move by China is easy to predict. Prime Minister Mark Carney has opened the door to Chinese EVs. It would be in Beijing’s best interest to retool and take control of closed plants to begin mass production in North America.
Chinese EV manufacturing in Canada serves two purposes.
First, they would not be limited in production to the cars that remain in Canada as part of the agreement. Factually, China would use their Canadian footprint as an export hub into Europe and save money on current distribution. Remember, Europe is losing their auto manufacturing base to China and Germany is laying off 100,000+ auto workers.
Second, the appearance of Chinese auto manufacturing in North America would put pressure on the United States to permit their cheap EVs to enter the market.
Today Bloomberg is reporting exactly what we predicted. Chinese automaker BYD (Build Your Dream) is asking local officials about the currently idled Stellantis auto plant. Things are following a very predictable timeline.
BLOOMBERG – Chinese carmaker BYD Co. inquired about taking over an idled Stellantis NV plant in the Toronto suburbs, according to a local politician, signaling possible global interest in Canadian auto hubs in the midst of a trade battle with the US.




