BYD to assemble commercial electric trucks in Canada
BYD Co. plans to open its first assembly plant in Canada, anticipating a surge in demand for electric trucks from municipalities and businesses.
BYD will open the plant next year in Ontario and hire 40 people to start, said BYD Canada spokesman Ted Dowling.
The company decided to “significantly” accelerate its investment in Canada because provincial tax incentives create a more welcome environment than the United States, he said.
“There is less of a barrier to entry when it comes to having Chinese products in Canada compared to the U.S.,” Dowling said. BYD declined to disclose the plant’s location in Ontario, how much it plans to invest or how much in government incentives it was offered. The company expects to make an announcement in a few weeks, Dowling said.
BYD’s plan comes as countries shift to electric vehicles to combat climate change and reduce health risks. The United Kingdom and France plan to ban sales of fossil-fueled vehicles by 2040, while China has said it will set its own deadline.
Some Canadian provinces are offering rebates to EV buyers while companies evaluate electric fleets. Last week, grocer Loblaws Cos. unveiled its first fully electric truck.
A spokesman for Ontario’s Ministry of Economic Development and Growth declined to comment on BYD’s plans.
BYD, of Shenzhen, China, will start its operations in Ontario by shipping technology and components from China and producing garbage trucks and delivery vans -- vehicles with relatively short daily routes, Dowling said.
The company intends to expand and will hire more people as it does so.
“BYD is a global company, but we like to localize,” Dowling said. “It doesn’t make sense to build everything in China and then ship it. It makes more sense to utilize the incentive programs and policy changes and create jobs in different markets.”
In 2013, the company opened an electric-bus assembly plant in Lancaster, Calif., staffed by 100 workers. The plant now employs 700 people.
Ontario is a good market for BYD because the region around Toronto has many distribution centers. If one company goes electric and sees its costs reduced, other companies will do so too, Dowling said.
Canada has been losing automotive investment to cheaper locations in the United States and Mexico. One of the last major commercial truck assembly plants in Ontario closed in 2011.
“We’re bringing back an industry and we’re doing it through electrification,” Dowling said. “It’s a totally different game.”
The company decided to “significantly” accelerate its investment in Canada because provincial tax incentives create a more welcome environment than the United States, he said.
“There is less of a barrier to entry when it comes to having Chinese products in Canada compared to the U.S.,” Dowling said. BYD declined to disclose the plant’s location in Ontario, how much it plans to invest or how much in government incentives it was offered. The company expects to make an announcement in a few weeks, Dowling said.
BYD’s plan comes as countries shift to electric vehicles to combat climate change and reduce health risks. The United Kingdom and France plan to ban sales of fossil-fueled vehicles by 2040, while China has said it will set its own deadline.
Some Canadian provinces are offering rebates to EV buyers while companies evaluate electric fleets. Last week, grocer Loblaws Cos. unveiled its first fully electric truck.
A spokesman for Ontario’s Ministry of Economic Development and Growth declined to comment on BYD’s plans.
BYD, of Shenzhen, China, will start its operations in Ontario by shipping technology and components from China and producing garbage trucks and delivery vans -- vehicles with relatively short daily routes, Dowling said.
The company intends to expand and will hire more people as it does so.
“BYD is a global company, but we like to localize,” Dowling said. “It doesn’t make sense to build everything in China and then ship it. It makes more sense to utilize the incentive programs and policy changes and create jobs in different markets.”
In 2013, the company opened an electric-bus assembly plant in Lancaster, Calif., staffed by 100 workers. The plant now employs 700 people.
Ontario is a good market for BYD because the region around Toronto has many distribution centers. If one company goes electric and sees its costs reduced, other companies will do so too, Dowling said.
Canada has been losing automotive investment to cheaper locations in the United States and Mexico. One of the last major commercial truck assembly plants in Ontario closed in 2011.
“We’re bringing back an industry and we’re doing it through electrification,” Dowling said. “It’s a totally different game.”
