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“There’s a huge wake-up call associated with this right now,” Cross said.

On top of this, electric engines are “on the cusp of accessibility,” he said. To remain relevant in a world in which people are buying fewer cars, companies will have to build something “better, faster or cheaper” in order to survive, he said.

Still, Flavio Volpe, president at the Automotive Parts Manufacturers’ Association, is cautious about betting on electric vehicles.

When he worked at Ontario’s economic development ministry from 2007 to 2011, he said they chased “every single lead we could” on vehicle electrification. Back then, GM made a big bet on the Chevy Volt, which it decided to build in Detroit-Hamtramck. Yet that plant is one of the eight facilities slated for closure.

“Right now, the market for electric vehicles doesn’t support an assembly plant, let alone various assembly plants,” Volpe said.

He pointed out that even Tesla, the darling of the electric vehicle world, nearly went under last year.

Right now, the market for electric vehicles doesn’t support an assembly plant, let alone various assembly plants Flavio Volpe, president, Automotive Parts Manufacturers' Association

“Until the price of lithium comes down, the cost of the batteries makes the cost of the vehicles out of reach for the majority of consumers,” he said.

Volpe believes it’s better for Canada to pursue expertise in connected vehicles, the technology that makes features such as telematics, weather, connectivity or advanced driver assistance. Canada is well-positioned to lead in this with thousands of tech companies in Ontario alone.

“The bet is connected technology,” Volpe said.

Canadian companies including Blackberry Ltd.’s QNX division are pursuing connected technology.

Meantime, BMO economist Doug Porter also questions how quickly electric vehicles will take off in the next 20 years. He said it’s possible that we are at peak car thanks to longer-term factors such as ride-sharing and more people living in the downtown core. But sales numbers still show a strong desire to own their own vehicles, Porter said.

“There’s still quite an appetite for motor vehicles,” he said.

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