Latest news with #AutomotivePartsManufacturers'Association
07-07-2025
- Automotive
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 (new window) . Maintaining it, they say, will cripple their companies and put thousands of jobs at risk. Carney cancelled Canada's digital services tax (new window) 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 (new window) the mandate was scrapped in order to promote consumer choice. While not legally binding, that target had won the support of U.S. and foreign automakers. The passage of Trump's "big, beautiful bill" (new window) 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. De nouvelles voitures électriques sont alignées chez un concessionnaire Hyundai à Québec en octobre 2024. Les Manitobains qui achètent ou louent un véhicule électrique éligible peuvent bénéficier d'une remise allant jusqu'à 4000 $ dans le cadre d'une mesure incitative provinciale qui a débuté en juillet 2024. Photo: La Presse canadienne / Jacques Boissinot 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. New EV rebate program in the works, environment minister says (new window) 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: Début du widget Widget. Passer le widget ? Fin du widget Widget. Retourner au début du widget ? Road to EV adoption: Why experts think the future is still electric 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 (new window) , 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. Peter Zimonjic (new window) · CBC News
Calgary Herald
26-06-2025
- Automotive
- Calgary Herald
Pressure building on Liberals to rethink electric vehicle mandate
OTTAWA — As Canada approaches a critical starting point for its electric vehicle goals, pressure is building on Prime Minister Mark Carney's government to rethink its plan. Article content Starting next year, the Liberal plan to get more electric vehicles on the road will enter its first phase: mandating sales targets for car companies, which could purchase credits, including by spending on charging infrastructure, or face penalties for not complying. Article content Article content Article content The government has set a target of 20 per cent of new passenger vehicles sold in 2026 must be either battery-powered or hybrid, which increases to 60 per cent by 2030 and reaches 100 per cent by 2035. Article content Article content But with plummeting electric car sales and Canada's auto sector under duress from a trade war with the U.S, which has abandoned its electrification goals under President Donald Trump, Carney's government must now decide whether to forge ahead or reconsider a core climate policy. Article content 'They're going to have to make adjustments,' said Flavio Volpe, president of the Automotive Parts Manufacturers' Association. Article content 'I think they know that, the industry knows that. It's really a negotiation on where those adjustments land. Is this a time for stretch goals or is this a time for reality. What's the mix?' Article content Article content He added that he had spoken to 'several ministers' this week. Article content Article content Brian Kingston, the president and CEO of the Canadian Vehicle Manufacturers' Association, which represents Ford, General Motors and Stellantis and has long opposed the sales mandate, says the policy heaps on added costs at a time when keeping production in Canada has been made more difficult by U.S. tariffs Article content 'At a time where companies are already facing tariff pressure, they are now going to face challenges selling vehicles in the Canadian market. Very difficult to make the case for Canada with this policy in place.' Article content Ford Canada CEO Bev Goodman was among the latest to call for the mandate to be scrapped, pointing to falling customer interest. Article content Statistics Canada bears that out, with the agency reporting a 45-per-cent drop in new zero-emission vehicles sold in March from the same month the year before. It said these new vehicles accounted for around seven per cent of vehicles sold in March 2025 — a figure critics point to as fuel to argue a 20 per cent sales target is unrealistic.
Edmonton Journal
26-06-2025
- Automotive
- Edmonton Journal
Pressure building on Liberals to rethink electric vehicle mandate
Article content OTTAWA — As Canada approaches a critical starting point for its electric vehicle goals, pressure is building on Prime Minister Mark Carney's government to rethink its plan. Starting next year, the Liberal plan to get more electric vehicles on the road will enter its first phase: mandating sales targets for car companies, which could purchase credits, including by spending on charging infrastructure, or face penalties for not complying. Article content The government has set a target of 20 per cent of new passenger vehicles sold in 2026 must be either battery-powered or hybrid, which increases to 60 per cent by 2030 and reaches 100 per cent by 2035. The goal is to reduce the country's emissions, taking direct aim at the transportation sector, which is among the top emitters. But with plummeting electric car sales and Canada's auto sector under duress from a trade war with the U.S, which has abandoned its electrification goals under President Donald Trump, Carney's government must now decide whether to forge ahead or reconsider a core climate policy. 'They're going to have to make adjustments,' said Flavio Volpe, president of the Automotive Parts Manufacturers' Association. 'I think they know that, the industry knows that. It's really a negotiation on where those adjustments land. Is this a time for stretch goals or is this a time for reality. What's the mix?' Article content He added that he had spoken to 'several ministers' this week. Brian Kingston, the president and CEO of the Canadian Vehicle Manufacturers' Association, which represents Ford, General Motors and Stellantis and has long opposed the sales mandate, says the policy heaps on added costs at a time when keeping production in Canada has been made more difficult by U.S. tariffs 'At a time where companies are already facing tariff pressure, they are now going to face challenges selling vehicles in the Canadian market. Very difficult to make the case for Canada with this policy in place.' Ford Canada CEO Bev Goodman was among the latest to call for the mandate to be scrapped, pointing to falling customer interest. Statistics Canada bears that out, with the agency reporting a 45-per-cent drop in new zero-emission vehicles sold in March from the same month the year before. It said these new vehicles accounted for around seven per cent of vehicles sold in March 2025 — a figure critics point to as fuel to argue a 20 per cent sales target is unrealistic. Article content When the sales mandate was introduced several years ago, Volpe said the market was better. Now, he says, 'we're not going to make it.' 'The math of not making it is punishing for companies that are all currently manufacturing in Canada, employing Canadians, both directly and buying lots of volume from suppliers.' For Joanna Kyriazis, director of public affairs at Clean Energy Canada, which, along with other stakeholders, helped the Liberals develop their zero-emission vehicle policy, she says 'flexibility' has been built into the program, which recognizes the impact on industry. The Opposition Conservatives, before the House of Commons broke for summer, also ramped up pressure on the Liberals to scrap the mandate, saying it removes 'choice' from consumers. 'The urgency and the pressure that is sort of coming across in public discussions is not quite there,' Kyriazis said. 'There's some time still to ramp up.' Article content She said there were steps the government could take to reverse what she also notes has been a 'drop' in consumer interest, which she connects to the ending of the federal rebate program for zero-emission vehicles announced earlier in the year, and that the Liberals have campaigned on reintroducing to the tune of $5,000. British Columbia's Energy Ministry pointed to the same drop when it fielded recent questions regarding a slide presentation that was obtained by reporters, showing the province to be 'considering several changes' to its own program, noting how the drop in sales made it 'challenging' to meet its mandated target of having 90 per cent of new vehicles sold be zero-emission by 2030. Another factor that the B.C. government cited was the backlash against Tesla CEO Elon Musk, who was an adviser to Trump until a public falling out. Article content Automakers and others in the industry also warn that Tesla would stand to benefit from the sales mandate. 'The campaign that has been sort of launched against (electric vehicles) and Trump's negativity towards (electric vehicles) has had an impact on consumer sentiment,' Kyriazis said. Interest has not disappeared, she said, citing recent polling done for the group, that around 45 per cent of Canadians say they would be open to switching to electric for their next vehicle. The federal government also collected feedback from Canadians. Earlier this year, Transport Canada commissioned a survey and focus groups on Canadians' feelings about the transportation system, which included questions about the zero-emission vehicle mandate. It reported that 'no clear consensus' was found when it comes to the 2035 sales mandate, with 45 per cent of respondents saying they felt it was a 'good idea,' compared to 39 per cent who said it was not. Another 16 per cent said they were not sure. Different views also emerged, according to the focus group findings. They're going to have to make adjustments. I think they know that, the industry knows that. It's really a negotiation on where those adjustments land The report, delivered in March and disclosed as part of the government's reporting of its public opinion surveys, found 'most participants supported the idea' of a sales mandate, based on reasons that ranged from reducing greenhouse gas emissions to sending a signal to industry about the need to transition and lower costs as compared to gas-powered vehicles. Those expressing concern cited the need for charging infrastructure, as well as worries about the possibility of battery fires and how they would fare in the extreme cold. Kyriazis said more education is needed on the range capabilities of electric vehicles, as are 'more efforts from governments' to ensure charging infrastructure gets built into condominiums and apartments through changes to building codes, given that it is often young people who call these buildings home who are among the most interested in switching to electric. Article content Expanding public charging infrastructure is also needed, particularly outside of British Columbia and Quebec, which have their own electric vehicle mandates. That, however, is 'dependent on government investment.' Kingston agrees that demand must increase for electric vehicles, including through spending on more public infrastructure. Still, he suggests rebate programs cannot be permanent, given how much they cost and the overarching goal to reach parity between the cost of electric vehicles and gas-powered ones, which he says is 'taking longer than anticipated.' Kyriazis said the government must announce when it intends to bring back the program to provide certainty to consumers waiting before deciding to make a purchase. A spokesperson for Environment and Climate Change Minister Julie Dabrusin said the government would 'look at ways to reintroduce a purchase incentive.' Article content Latest National Stories
Yahoo
22-05-2025
- Automotive
- Yahoo
Here's a plan to fix Canada's auto sector as its biggest customer tries to turn away
Canada's auto sector has been moving backward for the past decade, with overall vehicle production dropping 45 per cent to about 1.3 million vehicles last year from 2.4 million in 2014, but it's now facing perhaps its biggest challenge yet: its biggest customer, the United States, says it no longer wants Canadian-made vehicles. 'It's unprecedented,' Flavio Volpe, president of the Automotive Parts Manufacturers' Association, an industry lobby group, told an audience at the Canadian Club in Toronto on Wednesday about President Donald Trump saying his country does not want Canadian-made vehicles anymore. 'We don't have a negotiating table and I actually don't know what the next step is.' Volpe was joined by Rob Wildeboer, executive chairman of Martinrea International Inc., one of Canada's largest auto-parts companies, and others to discuss whether Canadian policymakers could help create a self-sufficient homegrown auto industry, how to support existing companies and what an ideal regulatory situation would look like. 'We're used to being punched in the face,' Wildeboer said, recounting how the 9/11 terrorist attacks, the 2008-09 financial crisis and the pandemic's supply chain challenges have hobbled the sector in the past. More recently, the Trump administration repeatedly threatened to impose tariffs and then followed through in early April with 25 per cent tariffs. Wildeboer said he travelled to Washington, D.C., twice, even making it inside the West Wing, to meet with Trump's top policy advisers, whom he warned that the North American auto production system is so integrated that any tariffs on Canadian or Mexican auto parts would quickly shut down production. He said the advisers took notes and eventually listened, as far as auto parts tariffs go, at least so far. Nonetheless, automakers have already warned the tariffs on finished vehicles will eat up billions of dollars in profits at a time when they face the costly task of reinventing themselves as the electric vehicle transition accelerates. 'That's the nature of how policy is going,' Wildeboer said. 'In my view, if you try to figure out one word for it, I would call it incoherent. That doesn't mean that we can't lurch towards something that's really good.' What 'really good' could look like at its simplest, he said, is completely free trade on auto parts in North America, and more rules around using only North American parts in vehicles, with higher penalties for non-compliance. Wildeboer also said there need to be new rules that penalize automakers from Europe, Japan, Korea and elsewhere that sell a lot of cars in North America, but don't manufacture here. However, he said Chinese automakers and parts companies need to be kept out of the market. 'They cheat,' he said, saying their companies receive too many government subsidies for Western companies to compete. Volpe made similar points about renegotiating a free trade agreement that brings more auto production back to North America, but he also characterized the industry's problem as a failure of imagination. In 2023, he spearheaded Project Arrow, which made a prototype vehicle entirely from Canadian parts. It was not made as a potential product for sale, but more as a publicity stunt to show people the depth and breadth of the industry and spur entrepreneurs to imagine what is possible, he said. Volpe said the federal and provincial governments, mainly in Ontario and Quebec, have spent the past several years wooing foreign automakers to build out an electric-vehicle supply chain in Canada by offering tax credits and other financial incentives that could add up to tens of billions of dollars. Honda reveals delay of $15-billion Canada investment part of shift in EV strategy EV sales in Canada dropped sharply in March, even as broader market grows The country should at least study whether it could create a national automaker, he said, noting that Vietnam has its own EV company and that the nature of the EV transition may even create a market opportunity for such a company. 'Let's have a national ambition in industrial policy and in the posture with which we lean into the wind,' Volpe said. • Email: gfriedman@ Sign in to access your portfolio
Yahoo
22-05-2025
- Automotive
- Yahoo
Industry executive says time to explore potential of Canadian-based automaker
Flavio Volpe, head of the Automotive Parts Manufacturers' Association, used a Canadian Club event in Toronto to call for an exploration into the potential of a new Canadian-born automaker. (May 22, 2025)
