Honda delays $15-billion EV project, Canadian Tire to buy Hudson's Bay stripes and Carney's new economy-focused cabinet: Business and investing stories for the week of May 18

Globe and Mail

18-05-2025

Getting caught up on a week that got away? Here's your weekly digest of the Globe's most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.
Prime Minister Mark Carney unveiled a postelection cabinet filled with both new ministers and familiar faces (albeit several in new roles). His new cabinet has 28 ministers and 10 secretaries of state. Mr. Carney filled key roles with ministers who are expected to follow his lead in rapidly reshaping Canada's economy, including experienced ministers in key economic portfolios, such as Finance (François-Philippe Champagne), Canada-U.S. relations (Dominic LeBlanc), Internal Trade (Chrystia Freeland), Industry (Mélanie Joly) and Foreign Affairs (Anita Anand).
Business leaders and executives says that Mr. Carney's cabinet picks reflect fiscal urgency as they expect Canada to act fast to boost growth, diversify trade, get energy projects built and restore a measure of fiscal discipline to the public purse. Meanwhile, former journalist Evan Solomon has been appointed Canada's first minister for artificial intelligence, a role that suggests AI will be a priority for the Liberal government.
In yet another setback to Ontario's automotive sector, Honda Canada announced that it is delaying a $15-billion electric-vehicle project in Ontario for two years due to weak demand for EVs. The project, which was expected to create at least 1,000 jobs, was unveiled last year with great fanfare and backed with billions of dollars in government subsidies. Honda Canada said the decision has no impact on current employment or production levels at he company's Alliston, Ont., assembly plant.
Adam Radwanski writes that Canada's new Industry Minister Mélanie Joly has her work cut out for her, especially when it comes to maintaining any momentum for the country's nascent electric-vehicle sector. Meanwhile, Canada's auto industry is already facing thousands of layoffs, shift reductions and temporary plant closures due to U.S. President Donald Trump's tariffs on auto-sector imports.
For young Canadians, the labour market is the bleakest it's been in decades. The summer job market is also getting trounced. As of early May, summer job postings on Indeed Canada were down 22 per cent from last year, according to a new report from the job-search site. The decline is being driven by job postings for summer camp roles (everything from camp counsellors to lifeguards to painters), which have fallen by 32 per cent. Matt Lundy takes a closer look at the numbers in this week's Decoder series.
Meanwhile, the youth unemployment rate (for those aged 15 to 24) hit 14.1 per cent in April. Many young people are worried about how the rocky job market is threatening their financial futures, pushing major life milestones, such as home ownership, further out of reach.
Canadian Tire is set to acquire Hudson's Bay's intellectual property, including the historic stripe design that dates back to the 17th century, the retailer's coat of arms, logos and brand names. The $30-million deal would mark a significant moment for Canada's oldest retailer which was granted creditor protection in March and put it assets up for sale. The company is in the process of liquidating all 80 of its Bay stores across the country, as well as two Saks Fifth Avenue and 13 Saks OFF 5th locations the company operates in Canada. The Canadian Tire deal is subject to court approval, but the company expects the deal to close later this summer.
More and more young Canadians are buying mundane businesses such as laundromats, car washes, and vending machine companies as a growing number of retiring baby boomers look to sell. The jobs are not flashy or glamorous – but that's the point. These budding entrepreneurs, often in their 20s to 40s, are looking to buy businesses that are already well-established in communities, with steady customers, proven revenue, and low overheads that make them more resilient to recessions. It's either a pathway to escape the monotony of a 9-to-5 job or simply an investment, similar to a rental property. Meera Raman spoke to a few young entrepreneurs who invested in a Vancouver laundromat, a car wash in Grenfell, Sask. and a powder coating business in Toronto as a way to secure their financial futures.
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