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Vancouver Sun
07-08-2025
- Automotive
- Vancouver Sun
Five auto CEOs warned Carney in May that EV mandate would 'inflict serious damage' across industry
OTTAWA — Less than two weeks after the Liberal cabinet was sworn in, the presidents of the five major automakers appealed directly to Prime Minister Mark Carney, requesting him to 'urgently' repeal the federal zero-emission vehicle sales mandate, warning of industry-wide repercussions if it is not. More than two months later, and with no public indication as to whether the government will listen, frustration is only building, says Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers' Association, which sent the May 26 letter and represents Ford, General Motors, and Stellantis. The letter was signed by Ford Canada CEO Bev Goodman, General Motors Canada President Kristian Aquilina, Honda Canada President and CEO Dave Jamieson, as well as Stellantis Canada CEO Jeff Hines and Toyota Canada President and CEO Cyril Dimitris. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. 'If the mandate is not urgently repealed, it will inflict serious damage on automakers, the dealership network, and the hundreds of thousands of Canadians employed in the sector,' the letter reads. Kingston said the fact that all five CEOs signed their names was noteworthy and speaks to how pressing they view the matter. 'When all five CEOs of the (original equipment manufacturers) that build and employ Canadians write in on a single issue, that signifies the level of urgency regarding the (electric vehicle) mandate.' A response from the Prime Minister's Office has not yet been returned. Back in July, Carney met with several of the auto CEOs to discuss the ongoing trade war with U.S. President Donald Trump, who has targeted the auto industry with tariffs. During the meeting, they raised the need to revoke the mandate. In the private letter, which was sent to other ministers and government officials, and released to National Post under federal access-to-information legislation, the five automakers outline their commitments to electrification and cite the 'tens of billions' of investments announced in Canada. It points out that Canadians have access to more than 100 different types of zero-emission vehicles and that Transport Canada's figures show the availability of these vehicles to be 'meeting or exceeding' consumer demand. The letter states that despite these efforts, electric vehicle sales have plummeted, referencing the latest available Statistics Canada figures for March, which showed sales fell to around 6.5 per cent of total vehicle sales. In the first quarter of this year, Statistics Canada recorded zero-emission vehicle sales in Canada, representing 8.7 per cent of new vehicle registrations, down 23 per cent from the previous year. The CEOs said the drop was 'in direct response' to the federal and provincial governments either 'weakening or eliminating purchase incentive programs that had been supporting demand.' Ottawa ended its program back in January, as did Quebec, which has since introduced a rebate. Flavio Nienow, a spokesman for Transport Canada, the department responsible for developing the rebate, said in a statement that the government ' understands that the higher purchase price of (electric vehicles) remains a key barrier to mass zero-emission vehicle adoption.' Laura Scaffidi, a spokeswoman for Transport Minister Chrystia Freeland, said the government was looking at ways to reintroduce a rebate of up to $5,000, but did not provide a timeline. In their letter from May, the CEOs cast doubt on the ability of a new rebate to cause electric vehicle sales to make a turnaround, citing other challenges such as 'natural consumer demand,' as well as the lack of infrastructure and challenges around affordability and slow adoption by commercial and government sectors. These factors combined 'make the current targets unrealistic and unattainable.' The letter requests that the mandate be repealed, given there was 'no longer a pathway' to reach its first target of seeing 20 per cent of new vehicle sales be zero-emission vehicles by 2026. Transport Canada defines a zero-emission vehicle as a fully electric, plug-in battery hybrid, or one powered by hydrogen fuel cells. The mandate, which the federal government formalized in 2023 to reduce greenhouse gas emissions within the transportation sector, sets out sales targets companies must hit, beginning with 20 per cent in 2026 and then rising to 60 per cent by 2030 before hitting 100 per cent by 2035. 'Given the impending 20 per cent requirement for 2026, the federal mandate is already forcing automakers to either limit combustion engine (ICE) and hybrid vehicle sales in Canada, or purchase credits from automakers like Tesla that do not produce vehicles in Canada,' the letter reads. It warns that the regulation would result in lower vehicle sales and fewer jobs in the sector and higher prices for consumers. 'This will undermine consumer affordability and choice at a time of rising costs, limited demand, and growing uncertainty about infrastructure readiness.' It argues that existing regulations for greenhouse gas emissions would drive the transition to electric vehicles and provide more flexibility. Environment Minister Julie Dabrusin and other ministers have been meeting with industry to discuss their concerns, with Dabrusin's office saying it was exploring 'flexibility.' Spokeswoman Jenna Ghassabeh reiterated that position in a new statement, saying the government was engaging with industry to ensure measures 'reflect times we are in.' Kingston, who met with Dabrusin last month, said the minister appears committed to the policy. He said some at Environment Canada have been 'pushing back' against their concerns that the matter is urgent. 'We need a clear public signal that it will be repealed, or automakers are going to continue to have to make disastrous choices, which is restricting vehicle sales and buying credits from Tesla.' National Post Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our politics newsletter, First Reading, here .
Yahoo
23-07-2025
- Automotive
- Yahoo
Automakers say tariffs are costing them billions and warn of steeper losses ahead
Two automakers with manufacturing operations in Canada, General Motors Co. and Stellantis NV, reported this week that tariffs are taking billions of dollars out of their profits. On Tuesday, GM said tariffs had a net impact of about $1.5 billion on its second-quarter earnings before interest and taxes (EBIT). One day earlier, Stellantis, which produces Fiat and Chrysler vehicles, reported that tariffs exacted a hit of about $477 million through the first half of the year, but warned of steeper losses ahead. Since the tariffs took effect earlier this year, automakers in North America have been warning that tariffs will add costs and make them less competitive at a time when they are navigating a complex transition to electric vehicles. One end result may be less vehicle production in Canada. 'These earnings reports from automakers underline the reasons why we urgently need to get to a deal (with the U.S.) that removes tariffs,' said Brian Kingston, president of the Canadian Vehicle Manufacturers' Association (CVMA), a trade industry lobby group that represents both GM and Stellantis. Beginning in March, when the U.S. briefly imposed blanket 25 per cent tariffs on Canadian goods, and then resuming in April, when the U.S. imposed a 25 per cent tariff specifically on all vehicle imports, auto exports to the U.S. have faced a 25 per cent tariff. The U.S. ultimately adjusted its policy such that vehicles compliant with the Canada-United States-Mexico Agreement (CUSMA) could mitigate the tariff rate based on the percentage of U.S.-built parts contained in a vehicle. At the same time, in April, Canada applied its own 25 per cent counter-tariffs to U.S.-built vehicles. Taken together, the policies are forcing North America's automakers to overhaul their operations so that more vehicles are built in the market where they are sold. That is proving to be an expensive proposition for an industry that spent the past two decades operating under free trade agreements that incentivized global supply chains, under which vehicles cross borders multiple times before being delivered to their end markets. Prime Minister Mark Carney has said he is aiming for a comprehensive trade deal by early August, but also has said there is likely to be some baseline level of tariffs on exports to the U.S. Overall, the uncertainty is already having an impact on Canada's auto sector. GM, for example, has said it plans this fall to cut the third shift at its Oshawa, Ont., plant — expected to cause about 700 layoffs — where it makes light duty and heavy duty Chevy Silverado pickup trucks. At the same time, it has added a shift in Indiana where it also makes the trucks. In addition to the impacts of layoffs on Canadian workers, the move could have another effect: Canada created a 'duty remission' scheme that allowed automakers to import vehicles from the U.S. duty free, based on the number of vehicles produced here. The shift change could reduce GM's production in Canada by one-third. Jennifer Wright, a GM spokesperson, said the federal government is well aware of the impending shift reduction, but could not say how it would affect its duty remission allowance, not least because Carney is hoping to reach a trade agreement before that. The situation shows how automakers are seeking to reconfigure cross-border operations to mitigate their tariff exposure. Wright noted that in 2024, GM sold 294,000 vehicles in Canada, which were produced in South Korea, Mexico, the U.S., and Canada. Now, tariffs create incentives to disentangle global supply chains. 'The auto sector has been designed in the last few years to be a very integrated market,' said Wright. GM said on its earnings call on Thursday that it expects tariffs to take US$4 billion to US$5 billion out of its earnings for 2025. So far, the company has posted strong sales in Canada in 2025, showing an eight per cent year-over-year increase in the second quarter. But Wright also said sales surged before tariffs took effect and she expects to see a softening as the year progresses. Meanwhile, Stellantis earlier this year indefinitely paused a multibillion dollar overhaul of its assembly plant in Brampton, Ont., which was being retooled so it could produce battery-electric, hybrid or internal combustion engine Jeeps, depending on market demand. At its Windsor, Ont., plant, the company continues to produce hybrid and internal combustion engine Chrysler Pacifica minivans, and battery-electric Dodge Chargers, but it has temporarily paused operations twice this year since tariffs were announced. Earlier this year, the company estimated that tariffs could cost it more than $2 billion. But the company is also battling sluggish sales, and shipments within North America fell 25 per cent in the first quarter of the year. GM to cut shifts at Oshawa Assembly Plant in move union calls 'reckless' How Trump's tariffs are already hobbling Canada's auto sector Kingston, of the CVMA, said that overall he expects vehicle sales in all of North America to drop by roughly 10 per cent in 2025. Although Carney has set an Aug. 1 deadline for a trade deal, Kingston called it an 'optimistic scenario.' Nonetheless, he said it is vital to the health of his industry to resolve the trade war quickly. 'The U.S. trade policy is doing significant damage to American automakers,' Kingston said. 'We need a resolution and we need it quickly.' • Email: gfriedman@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-07-2025
- Automotive
- Yahoo
Amid tariffs and falling sales, is Canada's EV mandate doomed?
With U.S. tariffs on steel, aluminum and light-duty vehicles continuing to batter the Canadian automobile industry, the CEOs of Canada's big three automakers are asking for a break. They met with Prime Minister Mark Carney this week to lobby for the elimination of the Liberal government's zero-emission vehicle (ZEV) mandate. Maintaining it, they say, will cripple their companies and put thousands of jobs at risk. Carney cancelled Canada's digital services tax last weekend to keep trade negotiations going with the U.S. Could the ZEV mandate also be removed to help an auto industry bleeding from the trade war? And what would that mean for Carney politically if he did so? The mandate requires the number of new ZEVs sold in Canada to hit 20 per cent by next year, 60 per cent by 2030 and 100 per cent by 2035 in order to help the country hit its emission-reduction targets. Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers' Association, who was at the meeting with Carney, said the electric vehicle mandate just can't be met as it stands. Kingston and other industry players say U.S. tariffs have led to a significant drop in the number of vehicles Canada exports, putting immense pressure on the industry. According to Statistics Canada, the number of light-duty vehicles exported to the U.S. in April was down 23 per cent over the previous year. Flavio Volpe, the president of Automotive Parts Manufacturers' Association, told CBC News that while Canada imports about $80 billion worth of automobiles and parts from the U.S. each year, it exports about 85 per cent of the light-duty vehicles that roll off the line. Many of those are plug-in hybrids or electric, but the market for those vehicles in the U.S. is declining just as it is in Canada. In January, U.S. President Donald Trump eliminated his country's ZEV mandate that would have required half of all new vehicles to be electric by 2030. A White House statement said the mandate was scrapped in order to "promote consumer choice." The passage of Trump's "big, beautiful bill" further hit the U.S. ZEV market by killing the $7,500 electric vehicle tax credit by the end of September. That credit was supposed to remain on the books until 2032. Canada had its own ZEV rebate. That program offered up to $5,000 toward the purchase of a new electric car and up to $2,500 on the purchase of a new plug-in hybrid. While it was supposed to stay in place until March, it was paused in January when it ran out of funding. In April, the sale of zero-emission vehicles in Canada sat at only 7.5 per cent — a 28.5 per cent decline over April 2024. With exports and sales down and no rebate in place, manufacturers say there is just not enough demand to hit the 20 per cent target next year. Christopher Cochrane, the chair of the University of Toronto's political science department, says Carney is wedged between his environmental ambition and the need for an industrial policy that will keep people employed and protect the auto industry. But if Carney decided he needed to end the EV mandate, Cochrane said, he might have a window of opportunity. "He has a coalition of people built not on any particular agreement with him, but built on a common disagreement with what they see as the main alternative — and that did give him the policy leeway to do things like get rid of the carbon tax," he said. But he said it isn't easy to navigate the environmental and economic concerns from within his own party. "The risk, longer term, is that he starts to erode and blow up that coalition," Cochrane said. "But right now I think he's still in pretty good shape." Adam Chamberlin, an assistant professor in the Telfer School of Management at the University of Ottawa, said Carney likely doesn't want to frame any decision as the end of EV mandates. "So 2035 maybe becomes 2036 or 2037, and the other interim goals for 2030 become 2031 or 2032," Chamberlin said. "I think it's that kind of a fudge that we're going to see." Volpe says that just because the U.S. wants to abandon its EV ambitions, that doesn't mean Canada should follow suit. He says an electrified car market plays to Canada's strengths as a country with rich reserves of critical minerals, a sophisticated science and technology sector, a well-established supply chain and an ample supply of electricity. WATCH | Why experts think the future is still electric: "The rest of the world continues down the march [of electrification] undaunted," Volpe said. "We need to make sure that as that [U.S.] market wakes up, we're first ones to access it." Volpe says any penalties for not meeting the ZEV mandate should be halted and it should be adjusted to better line up with "market realities." He wants the federal government to reintroduce the EV rebate and expand it to include conventional hybrids, which he said would build support for EVs. The government said it plans to introduce a new rebate program, but that hasn't happened yet. Volpe also wants the federal government to help identify the electric cars that Canadians want, and help factories retool to meet that demand.
CBC
06-07-2025
- Automotive
- CBC
Amid tariffs and falling sales, is Canada's EV mandate doomed?
Social Sharing With U.S. tariffs on steel, aluminum and light-duty vehicles continuing to batter the Canadian automobile industry, the CEOs of Canada's big three automakers are asking for a break. They met with Prime Minister Mark Carney this week to lobby for the elimination of the Liberal government's zero-emission vehicle (ZEV) mandate. Maintaining it, they say, will cripple their companies and put thousands of jobs at risk. Carney cancelled Canada's digital services tax last weekend to keep trade negotiations going with the U.S. Could the ZEV mandate also be removed to help an auto industry bleeding from the trade war? And what would that mean for Carney politically if he did so? The mandate requires the number of new ZEVs sold in Canada to hit 20 per cent by next year, 60 per cent by 2030 and 100 per cent by 2035 in order to help the country hit its emission-reduction targets. Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers' Association, who was at the meeting with Carney, said the electric vehicle mandate just can't be met as it stands. Kingston and other industry players say U.S. tariffs have led to a significant drop in the number of vehicles Canada exports, putting immense pressure on the industry. According to Statistics Canada, the number of light-duty vehicles exported to the U.S. in April was down 23 per cent over the previous year. Flavio Volpe, the president of Automotive Parts Manufacturers' Association, told CBC News that while Canada imports about $80 billion worth of automobiles and parts from the U.S. each year, it exports about 85 per cent of the light-duty vehicles that roll off the line. Many of those are plug-in hybrids or electric, but the market for those vehicles in the U.S. is declining just as it is in Canada. Killing the U.S. ZEV mandate In January, U.S. President Donald Trump eliminated his country's ZEV mandate that would have required half of all new vehicles to be electric by 2030. A White House statement said the mandate was scrapped in order to "promote consumer choice." The passage of Trump's "big, beautiful bill" further hit the U.S. ZEV market by killing the $7,500 electric vehicle tax credit by the end of September. That credit was supposed to remain on the books until 2032. Canada had its own ZEV rebate. That program offered up to $5,000 toward the purchase of a new electric car and up to $2,500 on the purchase of a new plug-in hybrid. While it was supposed to stay in place until March, it was paused in January when it ran out of funding. In April, the sale of zero-emission vehicles in Canada sat at only 7.5 per cent — a 28.5 per cent decline over April 2024. With exports and sales down and no rebate in place, manufacturers say there is just not enough demand to hit the 20 per cent target next year. Competing concerns Christopher Cochrane, the chair of the University of Toronto's political science department, says Carney is wedged between his environmental ambition and the need for an industrial policy that will keep people employed and protect the auto industry. But if Carney decided he needed to end the EV mandate, Cochrane said, he might have a window of opportunity. "He has a coalition of people built not on any particular agreement with him, but built on a common disagreement with what they see as the main alternative — and that did give him the policy leeway to do things like get rid of the carbon tax," he said. But he said it isn't easy to navigate the environmental and economic concerns from within his own party. "The risk, longer term, is that he starts to erode and blow up that coalition," Cochrane said. "But right now I think he's still in pretty good shape." Fudging it Adam Chamberlin, an assistant professor in the Telfer School of Management at the University of Ottawa, said Carney likely doesn't want to frame any decision as the end of EV mandates. "So 2035 maybe becomes 2036 or 2037, and the other interim goals for 2030 become 2031 or 2032," Chamberlin said. "I think it's that kind of a fudge that we're going to see." Volpe says that just because the U.S. wants to abandon its EV ambitions, that doesn't mean Canada should follow suit. He says an electrified car market plays to Canada's strengths as a country with rich reserves of critical minerals, a sophisticated science and technology sector, a well-established supply chain and an ample supply of electricity. WATCH | Why experts think the future is still electric: Road to EV adoption: Why experts think the future is still electric 10 months ago Duration 5:47 Recent headlines have suggested that consumers are losing interest in electric vehicles, but a closer look at the trends tells a different story. CBC's Nisha Patel breaks down where we're at in the EV transition and why experts say the future is still electric. "The rest of the world continues down the march [of electrification] undaunted," Volpe said. "We need to make sure that as that [U.S.] market wakes up, we're first ones to access it." Volpe says any penalties for not meeting the ZEV mandate should be halted and it should be adjusted to better line up with "market realities." He wants the federal government to reintroduce the EV rebate and expand it to include conventional hybrids, which he said would build support for EVs. The government said it plans to introduce a new rebate program, but that hasn't happened yet. Volpe also wants the federal government to help identify the electric cars that Canadians want, and help factories retool to meet that demand.
CTV News
04-07-2025
- Automotive
- CTV News
What could a scrapped EV mandate mean for Windsor's NextStar battery plant?
A truck seen leaving NextStar Battery Plant in Windsor, Ont. on July 4, 2025. (Robert Lothian/CTV News Windsor) The potential scrapping of Canada's electric vehicle mandate could create more uncertainty in the short term for Windsor's NextStar Energy electric vehicle battery plant. Earlier this week, automotive leaders asked the federal government to scrap its electric vehicle sales mandate. 'Now, what's changed since it was designed and came into force is that we've had this collapse in EV sales,' Brian Kingston, the CEO of the Canadian Vehicle Manufacturers' Association, said after a meeting with Prime Minister Mark Carney on Wednesday. The meeting included the CEOs of Ford Canada, Stellantis Canada, and GM Canada. Greg Layson, the Digital and Mobile Editor for Automotive News Canada, told CTV News the targets were always 'ambitious.' 'With no zero emissions vehicle purchase incentives, it becomes more difficult to meet those targets from the government standpoint,' Layson said. Potentially lowered EV production creates another hurdle to overcome for the NextStar battery plant. Production of battery cells has been expected to begin at the plant later this year. NextStar Battery Plant NextStar Battery Plant seen in Windsor, Ont. on July 4, 2025. (Robert Lothian/CTV News Windsor) 'We were never going to see three shifts of production at the battery plant on day one,' Layson said. 'We weren't even going to see two shifts of production on day one. It was going to be a long, slow process. It might just be a longer, slower process.' Previous estimates expected the battery plant to create about 2,500 jobs when fully operational. NextStar Energy declined to comment on potential changes to the vehicle mandate. In a previous unrelated inquiry last week, the battery manufacturer noted about 850 employees have been hired so far. 'We're not going to hire 2,500 workers overnight to fill this place. They're going to hire shift at a time, fill what they need, work when they need to,' Layson added. Under the EV sales mandate, 20 per cent of all new light-duty vehicles sold in Canada must be zero-emission as of next year. The target rises annually to 100 per cent by 2035. Layson believes Canada could loosen the mandates and 'spread' out the targets. He's optimistic the plant will play a key role in the EV sector when consumers transition, but it could take longer than expected. The automotive journalist added the industry will need better infrastructure and more competitive pricing to see demand take off. 'When sales fall, production falls, and when production falls, batteries aren't needed,' he noted. -With files from the Canadian Press.
