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Pressure building on Liberals to rethink electric vehicle mandate
Pressure building on Liberals to rethink electric vehicle mandate

National Post

time3 days ago

  • Automotive
  • National Post

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 The goal is to reduce the country's emissions, taking direct aim at the transportation sector, which is among the top emitters. 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. '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. 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 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.

Canadian automotive executives call for greater ambition amid Trump threats
Canadian automotive executives call for greater ambition amid Trump threats

Winnipeg Free Press

time21-05-2025

  • Automotive
  • Winnipeg Free Press

Canadian automotive executives call for greater ambition amid Trump threats

TORONTO – Canadian auto industry leaders say the country has to use the Trump-induced industrial crisis to build bigger at home. 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. Volpe says Canada has all the ingredients needed to build a domestic champion that could help boost the industry and show what the country is capable of, just as countries like Vietnam, Turkey and Mexico are already doing. He says there are certainly challenges, but given the shake-up going on from Trump's tariffs, it's important to be ambitious in exploring alternatives. Martinrea International executive chairman Robert Wildeboer said at the event that the rupture in the trade relationship with the U.S. is a wake-up call, and a tremendous opportunity. He says that Canada's domestic industry is challenged in part because critical skills like die making are in short supply, but that by working with North American partners, the industry could be producing millions more vehicles to supply local markets. Monday Mornings The latest local business news and a lookahead to the coming week. This report by The Canadian Press was first published May 21, 2025. Companies in this story: (TSX:MRE)

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