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CBC
04-07-2025
- Automotive
- CBC
Automakers want Canada to scrap its EV sales mandate. What would that do to emissions?
Automakers push Ottawa to drop EV mandates 1 day ago Duration 1:57 Social Sharing When Prime Minister Mark Carney met with automotive sector CEOs Wednesday about U.S. trade negotiations, one of the key issues the industry said they wished to discuss was the government's zero-emission vehicle (ZEV) mandate. The mandate requires a certain percentage of light duty vehicles — passenger cars, SUVs and trucks — that are sold to be either fully-electric vehicles or plug-in hybrids, starting with 20 per cent in 2026 and rising to 100 per cent by 2035. Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers' Association, told CBC News on the way to the meeting that "The targets that have been established cannot be met" given current market forces. He later added that Canada already has other policies to meet its greenhouse gas emission targets. Burning fossil fuels such as gasoline and diesel is the main cause of climate change, and transportation is the second-biggest source of emissions in Canada after the oil and gas industry. The ZEV mandate is part of Canada's strategy to accelerate the adoption of electric vehicles and decarbonize the transportation sector. But if the mandate were scrapped, analysts say that would hurt efforts to fight climate change — and make it harder to find an EV for sale in parts of the country. Here's a closer look at why. How big a deal are emissions from passenger vehicles? In 2023, transportation accounted for 23 per cent of Canada's greenhouse gas emissions. Unlike some sectors that have cut emissions since 1990, transportation emissions have grown 33 per cent, driven by both freight heavy-duty trucks and passenger light trucks. Passenger vehicles alone accounted for about 12 per cent of Canada's emissions in 2023. The Canadian Climate Institute, a climate policy think-tank partly funded by Environment and Climate Change Canada, modelled 60 potential net-zero scenarios and found that switching to zero-emission vehicles was central to every one. Arthur Zhang, senior research associate at the institute, said EVs are "one of the most reliable technologies we have for reducing emissions in the transportation sector." WATCH | Canada's plan to phase out gas-powered cars and trucks Canada's plan to phase out gas-powered car and truck sales by 2035 2 years ago Duration 2:04 How would the ZEV mandate increase EV adoption? It aims to solve a few problems. One of the challenges up until now has been the lack of availability of electric vehicles in many parts of Canada. In a recent interview, Cara Clairman, president and CEO of Plug'n Drive, an organization focused on public education about EVs, said in many parts of Canada, it's still impossible to find an EV to test drive, due to low availability at dealerships. The exceptions are B.C. and Quebec, which have their own ZEV sales mandates. "That means more dealers have [electric] cars," she said. "If the vehicles are on the lots, you know, they sell more EVs. That's just the reality." Zhang said the mandate signals government support for the EV transition and gives manufacturers the push to focus on electric vehicles even during periods of slower demand, such as now. EVs accounted for 7.53 per cent of all new vehicles sold in April, down from a peak of 18.29 per cent in December 2024, now that federal, Quebec and B.C. rebates are gone. The federal government says a new rebate program is in the works, which consumers are waiting for, and Kingston says that's hurting EV sales right now. Electric vehicles are becoming easier to find in Canada, but not easier to afford 1 year ago Duration 1:54 Electric vehicles are becoming easier to find at Canadian auto dealers, but they are still more expensive than most gas-powered vehicles. EV experts encourage drivers to consider fuel savings and provincial incentives as they mull over their next car purchase. And he said it could also potentially lower the price of EVs, as manufacturers and importers boost the price of gas-burning vehicles relative to EVs and "cross-subsidize" them in order to meet sales targets. Ross McKitrick, an economics professor at the University of Guelph and an unpaid senior fellow at the Fraser Institute, predicted such a markup of gas vehicles in a recent study modelling the economic impacts of the ZEV mandate. However, he found that the extra markup from gas-burning vehicles would be offset by lower overall sales due to higher vehicle prices overall (reducing the size of Canada's vehicle fleet by 0.6 per cent by 2050). Manufacturers or importers can also earn credits toward the target by selling more EVs ahead of time, overshooting the target some years, or installing EV charging infrastructure, which could also help boost demand for EVs. However, those who don't meet the targets even with the credits would face penalties. 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. What impact would the mandate have on emissions? McKitrick's study found that initially, the impact would be modest, as people's cars age slowly before needing replacement. But by 2050, the EV mandate will have cut Canada's greenhouse gas emissions by roughly eight per cent compared to a "base scenario" without an EV mandate. That's large, considering that passenger vehicles make up 12 per cent of emissions right now, and emissions would already be declining due to some adoption of EVs. McKitrick said scrapping the mandate would mean forgoing that eight per cent cut to emissions. Couldn't other policies cut emissions if the ZEV mandate gets scrapped? Zhang said government subsidies such as funding for EV charging infrastructure and rebates for people buying EVs can make a difference, but those work better as complementary policies: "They are not substitutes to the mandate as far as emissions reductions go," he said. He added that subsidies rely on taxpayer dollars, which may be less efficient than a policy to encourage manufacturers to make EVs more attractive. On the other hand, McKitrick calculated that the ZEV mandate would be roughly 10 times more expensive per tonne of carbon abated than the former federal carbon tax, which Prime Minister Mark Carney eliminated in March – although the ZEV mandate's "cost" would fall to zero once EVs and gas cars cost the same. That's already the case in some places outside Canada, Zhang said. WATCH | The North American fight against cheap Chinese EVs, explained The North American fight against cheap Chinese EVs, explained | About That 10 months ago Duration 9:04 Canada is stepping in line with the U.S. and imposing 100 per cent tariffs on all electric vehicles coming from China to combat the "unfair advantage" it has in the global marketplace. About That producer Lauren Bird explores why North America is closing the door on a massive source of cheap electric vehicles and why experts say consumers will pay the price. CORRECTION: At 1:47 in this video, we state that the cheapest Tesla on the market as of Aug. 28, 2024, in the U.S. is a Model Y for about $45,000 USD. In fact, the cheapest Tesla you can buy in the U.S. without a federal tax credit is the Model 3 Rear-Wheel Drive for $38,990. One strategy to boost EV sales and adoption that has been proposed by academics and EV advocates has been to scrap tariffs on Chinese cars, which sell for as little as $13,000 Cdn overseas. Zhang acknowledged, "In the case where cheaper EVs are available to consumers, the EV mandate may not be as impactful."
Yahoo
03-07-2025
- Automotive
- Yahoo
Automakers 'cautiously optimistic' on EV mandate changes after meeting with PM
OTTAWA — The head of the Canadian Vehicle Manufacturers' Association says he's "cautiously optimistic" the federal government will repeal its electric vehicle sales mandate. Brian Kingston was among several auto industry executives who met with Prime Minister Mark Carney yesterday in Ottawa. Along with discussing the impact of U.S. tariffs, the automakers urged Carney to get rid of the EV mandate, saying there's no way the industry can meet the targets it sets out. The mandate policy states that, as of next year, 20 per cent of all new light-duty vehicles sold in Canada must be zero-emission, and that target rises annually to 100 per cent by 2035. Kingston said if automakers can't meet the 2026 target, they'll have to pull about one million gas-powered vehicles from the market in order to comply with the sales mandate. The most recent data from Statistics Canada shows EV sales in Canada dropped to 7.5 per cent in April. This report by The Canadian Press was first published July 3, 2025. Nick Murray, The Canadian Press 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
03-07-2025
- Automotive
- Yahoo
Readout - Prime Minister Carney meets with the Canadian Vehicle Manufacturers' Association
OTTAWA, ON, July 2, 2025 /CNW/ - Today, the Prime Minister, Mark Carney, met with the leadership of the Canadian Vehicle Manufacturers' Association and member CEOs. Prime Minister Carney and the leaders discussed ongoing negotiations with the United States, and the work to pursue a deal by July 21, 2025. They discussed the impacts on the sector and the need to build up a made-in-Canada supply chain as well as diversify our trading partners. The Prime Minister underscored the federal measures to safeguard Canadian auto workers and businesses from unjust tariffs, and the adjustment of counter-tariffs on July 21 based on the state of negotiations. Prime Minister Carney affirmed that the government's focus remains on securing the best deal for Canadian workers and industries. The leaders also discussed opportunities to make Canada's auto sector more sustainable and competitive in the face of shifting trade relationships, market conditions, and supply chains. This document is also available at SOURCE Prime Minister's Office View original content: 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
Globe and Mail
05-06-2025
- Automotive
- Globe and Mail
Plunge in automotive exports leads record Canadian trade deficit
Canada's exports of automobiles to the U.S. fell by 23 per cent in April as vehicle makers cut production in the first month that President Donald Trump's tariffs kicked in. Combined with parts, automotive shipments to Canada's largest trading partner plunged by more than 17 per cent in value from the previous month, the largest sectoral drop in merchandise trade shipments reported by Statistics Canada on Thursday. Carmakers based in Ontario have responded to the tariffs by slashing production, idling assembly lines and laying off workers. 'The tariff impacts are significant, and it makes it very challenging to build a vehicle in Canada and export it to the U.S. in the face of a 25-per-cent tariff,' said Brian Kingston, president of the Canadian Vehicle Manufacturers' Association, which represents Ford Motor Co., General Motors and Stellantis NV in Canada. The U.S. and Canadian auto industries are highly integrated, an efficient system built on decades of free trade. The U.S. is the buyer of almost all of Ontario's auto production, Mr. Kingston noted by phone. Mr. Trump says his rollout of tariffs on most trading partners is intended to bring home manufacturing and spur countries to stop the flow fentanyl and illegal migration while balancing trade. His tariff policies have changed repeatedly, leading to chaos in the auto industry and other sectors. The U.S. auto industry has called the tariffs inflationary and bad for sales and production. It takes years and billions of dollars to move supply lines and factories, industry members and experts say. 'This data just underlines the importance of getting to an agreement with the Americans as quickly as possible, removing these tariffs and returning to North American automotive production,' Mr. Kingston said. Canadian-assembled vehicles are subject to a 25-per-cent tariff, reduced by the amount of U.S. content, which is typically about 50 per cent. Canadian parts enter the U.S. tariff-free but are subject to duties when attached to a Canadian-made car. Canadian auto-parts factories depend on vehicle assembly plants for about half of their sales. Ahead of the tariffs, Canadian vehicle exports rose by 21 per cent, Statistics Canada said, as U.S. importers rushed to beat the duties. Flavio Volpe, head of the Automotive Parts Manufacturers' Association and represents Canadian suppliers, said the tariffs are hurting companies in Canada and the U.S. He noted three of Ontario's vehicle exporters are Detroit-based. 'We're so intertwined, half of that effect is being borne by American balance sheets,' Mr. Volpe said, calling the drop in shipments a 'self-inflicted wound.' Ontario is home to a Stellantis NV minivan and Dodge Charger plant in Windsor; a General Motors pickup truck plant in Oshawa and a parcel van factory in Ingersoll; a Honda factory in Aliston; and Toyota plants in Cambridge and Woodstock. Two other sites are closed and awaiting retooling for new vehicles: Ford Motor Co. in Oakville and Stellantis in Brampton. Since the tariffs kicked in, GM and Stellantis have announced layoffs, production reductions or delays and periodic shutdowns of assembly lines. Honda has delayed a massive electric vehicle project.
CTV News
14-05-2025
- Automotive
- CTV News
Looking at the future of EV after Honda delays Ontario project
Watch Brian Kingston of the Canadian Vehicle Manufacturers' Association speaks about the EV market and what's behind the decline of sales.
