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Internal government document predicted 'immediate' drop in EV sales without rebate subsidies

Internal government document predicted 'immediate' drop in EV sales without rebate subsidies

National Post5 days ago
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The government document also assesses the impact of Trump's decisions to scrap previous U.S. electric vehicle policies, such as the 2030 mandate introduced under his predecessor, former president Joe Biden, as well as subsidies for battery-electric vehicles.
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It also touched on the impact that axing consumer incentives would have on the situation in both Canada and the U.S.
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'Recent executive orders issued by President Trump, which intend to eliminate consumer supports for (battery electric vehicles), combined with the pause of Canada's incentives for zero-emission vehicles (iZEV) program have added uncertainty to the market,' it reads.
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'In particular, the intended removal of consumer supports in both countries will have an immediate negative impact on sales growth in 2025 as these initiatives make the price of (battery electric vehicles) competitive to their internal combustion counterparts,' it says elsewhere in the document.
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The document warned the timelines for achieving price parity between battery-electric vehicles and traditional ones 'could further shift' as a result of Trump's policies.
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A statement from Industry Minister Melanie Joly's office said it is working with the sector in response to the challenges. 'With unjustified US tariffs putting the entire industry at risk, the government recognizes the sector's concerns and is continuing to engage meaningfully with industry stakeholders to address and alleviate these challenges,' the ministry wrote.
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The federal government announced back in January that it was hitting 'pause' on its $5,000 rebate program more than two months earlier than scheduled, saying the funding for that program had dried up.
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It had launched the incentive in 2019 as a way to bring down the price of electric vehicles, which proponents of the policy say is needed to encourage more widespread adoption, blaming the abrupt cancellation for the drop in sales.
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Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers' Association, which represents Ford, General Motors and Stellantis, said while the industry wants the EV mandate gone, it also needs clarity on what the government intends to do when it comes to reintroducing a new rebate.
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'The lack of clarity is further damaging sales,' he said.
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'If you are bringing it back, you have to announce it with a very defined timeline, and you can't say that we're going to bring the … program back in six months. Because unfortunately, that means you then delay the purchase of these vehicles for another six months.'
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'We are looking at ways to reintroduce a purchase incentive worth up to $5,000 that supports Canadian workers, strengthens our domestic supply chains, and reflects the times we are in,' wrote Ministry of Transport spokesperson Laura Scaffidi in an email.
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Stock Market News for Jul 29, 2025
Stock Market News for Jul 29, 2025

Globe and Mail

time26 minutes ago

  • Globe and Mail

Stock Market News for Jul 29, 2025

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Jersey Mike's Subs Opening in Regina Tomorrow Springboard to Canadian Expansion West
Jersey Mike's Subs Opening in Regina Tomorrow Springboard to Canadian Expansion West

Cision Canada

time26 minutes ago

  • Cision Canada

Jersey Mike's Subs Opening in Regina Tomorrow Springboard to Canadian Expansion West

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Air Canada reports second-quarter earnings down in 'challenging environment'
Air Canada reports second-quarter earnings down in 'challenging environment'

Toronto Sun

time26 minutes ago

  • Toronto Sun

Air Canada reports second-quarter earnings down in 'challenging environment'

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