Canadian Assembly

[Vernon SINNOTT]

You mentioned you have shops all over the World including Canada. I am curious how many Canadians have placed orders. I am concerned about the vehicle passing a federal inspection and import duties. Will the Canadian orders be assembled in Canada? That would eliminate those concerns but is it feasible?

[Gary McLaughlin]

Another Canadian here and it seems we share a lot of the same concerns!

[Joshua Rosen]

I thought there were no auto tariffs between the US and Canada.

[Gary McLaughlin]

Good point. I took a look at CUSMA’s Automotive Rules of Origin which you have to satisfy to get preferential tariff treatment:

• “The outcome on automotive rules of origin includes:
  • a 75% regional value content requirement;
  • strong content requirements for core parts such as engines and transmissions;
  • a 70% North American steel and aluminum requirement; and
  • a labour value content requirement.
• The labour value content requirement means that a significant percentage of the value of a vehicle must be produced by workers earning the equivalent of at least US$16 per hour.”

One of the core parts would be the imported hub motors which leaves me questioning if the Aptera will not meet the regional value content requirement. The steel and aluminum requirement could also be a problem, but hopefully not.

[Harry Parker]

Do these rules apply to motorcycles? Remember, Aptera is not an automobile.

Aptera haas said the initial motors will be manufactured in Europe, but manufacturing will move to Aptera facilities as volume increases.

[Gary McLaughlin]

I have found several websites that state that motorcycles that are assembled in the USA are exempt from duty fees at the border. Now, I’m torned. I wanted Aptera to be classified as an automobile so I don’t have to get a motorcycle license and deal with graduated licenses and helmet requirements, but I don’t want to pay duty either!