Canadia's Industry Minister Melanie Joly (good looking! :) is requiring Germany and South Korea, which want Canada's submarine contract, to facilitate significant automotive production commitments (build factories) on Canadian soil. See the January 9, 2026 Korea Times article at this https://www.koreatimes.co.kr/amp/business/companies/20260109/canadian-sub-deal-hinges-on-carmaker-cooperation
Pete Comment
VW may lead the German automotive push. It sells more autos that are perhaps more price competitive than Mercedes, BMW, Porsche or Audi. South Korea, with car production dominated by price competitive Hyundais and Kias, may have an industrial advantage over Germany. Also the increase in Germany's defence spending, due to Russia-Ukraine, may reduce Germany's ability to raise offset money for Canadian car factories.
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Since I wrote "TKMS-Canadian Marmen Collaboration: Has Type 212CD Won the CPSP?" on December 22, 2025, on traditional naval criteria TKMS may be ahead in the future Canadian submarine competition (CPSP).
A factor that may favour the TKMS Type 212CD is TKMS' decades of experience of anti-Russian operations in very cold water - something SK's submarine builders cannot match. It is possible that in cold water the Type 212CD may have advantages in Lithium-ion Batteries, AIP and sonar compared to the Hanwha Ocean's KSS-III – although this is dependent on submarine development years away and is classified. Also the NATO First Policy, perhaps most overtly voiced by the UK in 2025, favours NATO nation (Canadian and German) solidarity.
The Canadian
armed forces are some of the personnel manning the IUSS (NATO aligned) seafloor
and tethered sensor network mainly aimed at Russian submarines. Canadian
submarines help weaponize this IUSS network. See https://gentleseas.blogspot.com/2022/05/us-uk-canadian-undersea-surveillance.html
Another factor that may favour the German-Norwegian designed 212CD is that Canada is building 8 x Norwegian designed Harry DeWolf-class offshore patrol vessels. These vessels, at 6,500 tonnes, are ice-breakers - hence adapted to cold water operations.
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