MPs Vote to Probe Rising Auto Theft for Black Market Export

A Chevrolet automotive dealership in Ottawa, Ont., on Aug. 11, 2023. The Canadian press/Sean Kilpatrick

MPs voted unanimously to probe a growing auto theft black market that sees Canadian vehicles stolen and then exported to other countries.

During a meeting of the Commons public safety committee on Oct. 23, Bloc Québécois MP Kristina Michaud put forward a motion to “study car thefts in Canada as well as federal resources to fight crime,” which all members supported.

Insurance claims for stolen cars, trucks, and SUVs last year cost over $1 billion, according to a Blacklock’s Reporter article on Oct. 24.

The “2022 Vehicle Theft Trend Report,” issued on June 6 by insurance members of the Équité Association, said vehicle thefts last year totalled 70,082, with Ontario the worst province for stolen autos, at 28,131, Quebec at 14,380, and Alberta at 12,965. the report said all provinces saw a year-over-year double-digit increase in auto thefts between 2021 and 2022.

Alberta MP Dane Lloyd told the committee this is a “national issue.” He said he had personal experience as a vehicle owner who had his own vehicle stolen. “I did recover it thanks to tracking technology that many companies are putting into their vehicles.”

Ms. Michaud told the committee that 60 percent of cars stolen in Ontario wind up in the Port of Montréal and are shipped to countries in Africa, the Middle East, and Europe. “We are talking about a thousand thefts a month.”

“Insurance companies have had to pay a billion in claims in the past year,” added Ms. Michaud. “Everyone here knows someone whose car was stolen. The federal government has a direct responsibility.”

Mississauga-Malton, Ontario, Liberal MP Iqwinder Gaheer told the committee that his community seemed to be the car theft capital of Canada.

“The region I am from, Peel Region, which includes Mississauga and Brampton, is particularly hard hit,” he said. “We probably have the highest level of car thefts in the country. This is something my constituents raise with me all the time. I hear it every single day.”

A car is stolen every six minutes in Canada by organized crime, and auto theft is most rampant in Toronto, according to an Aug. 28 Rates.ca news release. The Toronto Police Service’s Public Safety Data Portal shows that 9,606 cars were stolen in 2022—nearly triple the number stolen in 2015.

In particular, vehicle thefts in Quebec, Newfoundland, and Prince Edward Island saw an increase of 50 percent or more from 2021 to 2022, while Ontario saw a 48.3 percent spike in thefts, according to Équité’s “2022 Vehicle Theft Trend Report.“

The report said that, for the first time in Canada, it’s estimated that the insurance industry lost over $1 billion in auto theft claims in 2022. Many of the vehicles are stolen and shipped overseas.

According to official estimates, Canadian ports handle 1.8 million shipping containers each year, but few containers are randomly inspected. Minutes of a 2011 meeting of  Canada Border Services Agency (CBSA) managers said that the estimated number of export examinations is less than 1 percent, while the Montreal region reported that port checks were conducted only on Tuesdays and Thursdays. Other records suggested Halifax officers are only completing a maximum of six inspections per month.

In 2010, Parliament got tough on auto theft by passing Bill S-9, “An Act to Amend the Criminal Code (auto theft and trafficking in property obtained by crime.” The bill introduced a penalty of up to five years in jail if found guilty of alteration or removal of a vehicle identification number on a vehicle. The bill also allowed the CBSA new access to police databases to track stolen vehicles that could be bound for export out of the country.