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Globe and Mail
06-07-2025
- Automotive
- Globe and Mail
Environment group warns against repealing federal EV mandate
An environmental think tank is warning the federal government against repealing its electric vehicle mandate, instead suggesting that politicians should be helping to put more EVs on the road. In a statement published Friday, Clean Energy Canada gave three recommendations to the federal government to help deliver affordable EVs to Canadians for less than $40,000. The group, based out of Simon Fraser University in British Columbia, said Ottawa should retool its EV mandate by revisiting its near-term targets to help the auto sector 'weather this temporary storm' of slumping EV sales. 'Any additional flexibility added in the regulation should be designed to achieve other EV-related goals, such as delivering more affordable EVs and building out Canada's charging network,' says the statement by executive director Rachel Doran and director of public affairs Joanna Kyriazis. The plea comes on the heels of auto manufacturing leaders meeting with Prime Minister Mark Carney last week, in which the CEOs repeated their calls for the mandate to be repealed. Starting next year, the mandate would require 20 per cent of all new light-duty vehicles sold in Canada to be zero-emission vehicles. Those also include plug-in hybrid electric vehicles. The target rises annually to 100 per cent by 2035. Recent data from Statistics Canada suggests EVs accounted for 7.53 per cent of all new vehicles sold in April. Following the meeting, the head of an organization representing Ford Canada, GM Canada and Stellantis said he was 'cautiously optimistic' the government would take action on the mandate. Clean Energy Canada also called on Ottawa to re-fund the EV incentive program, but to be clearer as to when the program will be phased out. The government launched the Incentives for Zero-Emission Vehicles program in 2019, which gave car buyers up to $5,000 toward the cost of an electric vehicle. The program was abruptly suspended back in January when its funding ran out. It has left many dealerships on the hook for the rebate if they hadn't already sent in their claim before the program ended. The federal government put nearly $3 billion into the program during its lifespan. 'The rebate should start at $5,000 and decline by $1,000 each year, providing consumers and automakers with a well-communicated phaseout that avoids periods of artificially lowered EV sales as buyers await the return of rebates or at least clarity,' Clean Energy Canada says. A similar policy is in place in Quebec. Federal ministers have said in recent months that the government was working toward bringing back consumer incentives on EVs. Opinion: Ottawa, bring back Canada's EV incentive program Those promises faced criticism from automakers themselves because, without implementing a rebate, EV sales are slumping further, as buyers wait for the rebates to come back. Clean Energy Canada also called on the federal government to reconsider its approach to cheaper EVs from China, which are subject to a 100 per cent tariff which took effect in October. Ottawa is scheduled to review the measure later this year. 'Allowing in a limited quota of these affordable vehicles while also recognizing EU-approved vehicles … would open Canada's vehicle market to fill important market gaps, drive innovation and ultimately make our auto sector more competitive,' the group says.
Globe and Mail
06-07-2025
- Automotive
- Globe and Mail
Carney drops digital services tax, LNG Canada starts exports to Asia and auto CEOs ask for EV mandate changes: Business and investing stories for the week of July 6
Getting caught up on a week that got away? Here's your weekly digest of The Globe's most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more. Prime Minister Mark Carney briskly walked back Canada's digital services tax (DST) on foreign tech giants after U.S. President Donald Trump ended trade talks. The White House said that Mr. Carney 'caved' during a Sunday phone call with Mr. Trump and negotiations would resume between the two countries. Speaking to reporters in Ottawa, Mr. Carney declined to explain what Canada received in return for scrapping the tax, but said Canada and the U.S. aim to have a deal by July 21. The digital services tax would have imposed a 3-per-cent levy on Canadian revenue exceeding $20-million earned by major tech companies such as Amazon, Google parent Alphabet, Meta, Uber and Airbnb with at least $1.1-billion in global revenue. This would have included revenue from search engines, social-media platforms and online marketplaces. The tax was enacted by Canada last year with the first payments due to be collected June 30, mere hours before Mr. Carney scrapped it. This week, Prime Minister Mark Carney met with auto sector chief executives from Ford Canada, Stellantis Canada and General Motors of Canada as the Canadian and U.S. governments try to reach a trade deal that might end auto tariffs, among other levies. The CEOs are urging Ottawa to repeal federal regulations that require one in five vehicles (20 per cent) sold starting in 2026 to be zero-emission models. This rises to 60 per cent by 2030 and 100 per cent by 2035. As Steven Chase and Eric Atkins report, automakers warn that electric-vehicle sales in Canada are waning this year and it would be impossible to reach the zero-emission vehicle (ZEV) mandate targets, especially with federal EV incentives for car buyers on pause. The automakers also say they won't be able to meet next year's target, and that consumers – not government – should decide what is available on the car lots. Canada is grappling with Mr. Trump's 50-per-cent tariffs on steel and aluminum, and a 25-per-cent tariff on autos. Canada's trade deficit with the world narrowed in May, falling to $5.9-billion from a record $7.6-billion in April, according to Statistics Canada data. Tariffs continued to weigh on exports to the United States, Nojoud Al Mallees reports, already slowing down the Canadian economy. Forecasters expect the economy shrank in the second quarter, and for the trade challenges to continue exerting upward pressure on the jobless rate. Still, the only thing that shimmered in Statistics Canada's latest release of trade numbers was soaring exports of unwrought gold, silver and platinum. The rise in prices for the shiny metals has increasingly skewed Canada's trade numbers. In fact, the country's trade deficit widened to $10.3-billion after stripping out imports and exports of the gold category. Jason Kirby takes a closer look at the numbers in this week's Decoder series. A ship carrying the first load of liquefied natural gas from Canada's first LNG export terminal left for Asia earlier this week. The GasLog Glasgow departed from Kitimat, B.C., on Monday, embarking on a journey across the Pacific Ocean nearly seven years after the export terminal's construction began. As Brent Jang reports, this moment ushers a new era in energy exports at a time when Canada seeks to diversify markets away from the United States. Once the Kitimat terminal's first phase is in full swing, there will be about 170 vessels a year transporting LNG to Asian markets. LNG Canada, whose largest partner is Shell with a 40-per-cent stake, is mulling expanding operations that could double the plant's capacity to 28 million tonnes a year. In contrast, the first LNG export facility in the U.S. mainland began operating in 2016, and another seven U.S. sites have opened since then. Climate activists and environmental think tanks say the world needs to focus on renewable energy, not on fossil fuels such as LNG. The Southeast is booming. The region has been growing faster than the rest of the U.S. for quite some time, and its outperformance has ramped up since 2019, according to the Federal Reserve Bank of Atlanta. This power shift is highly relevant for Canadians, because while states close to the border might suffer from a trade war with Canada, all the growth in the Southeast could help the United States offset any tariff trauma. The boom in the Southeast has become a secret weapon in Trump's trade war, and it allows the White House to push the limits. Tim Kiladze took a road trip through the region that has quietly become America's economic engine. He drove 500 kilometres through the U.S. Southeast – from Charlotte, to Charleston, to Savannah – talking to small business owners, bankers, industrial chief executive officers and everyday people. Get the rest of the questions from the weekly business and investing news quiz here, and prepare for the week ahead with The Globe's investing calendar.
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.
Global News
04-07-2025
- Automotive
- Global News
Automakers ‘cautiously optimistic' after meeting Carney over EV mandates
The head of an organization representing automakers said he's 'cautiously optimistic' after meeting with Prime Minister Mark Carney to urge him to repeal the electric vehicle sales mandate. Canadian Vehicle Manufacturers' Association CEO Brian Kingston joined the CEOs of Ford Canada, Stellantis Canada and GM Canada in a meeting with the prime minister on Wednesday in Ottawa. Along with discussing the impact of U.S. tariffs — the primary focus of the meeting — the automakers told Carney there's no way the industry can meet the targets set out in the EV mandate. The industry has long argued the mandate is unnecessary since Canada already has other policies to meet its emissions-reduction targets. 'Why would you put an EV mandate on top of your existing (greenhouse gas) regulations? It makes absolutely no sense,' Kingston told The Canadian Press. Story continues below advertisement 'Now, what's changed since it was designed and came into force is that we've had this collapse in EV sales.' 4:09 Trump reverses California EV mandate, says 100% electric cars would be a 'disaster for the country' The EV sales mandate requires that 20 per cent of all new light-duty vehicles sold in Canada next year be zero-emission. The target rises annually to 100 per cent by 2035. The most recent data from Statistics Canada shows EVs accounted for just 7.53 per cent of all new vehicles sold in Canada in April. EV sales peaked at 18.29 per cent in December, the last month before funding ran out of the popular Zero-Emission Vehicles rebate program. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Known as iZev, the rebates offered up to $5,000 off the cost of a new electric vehicle, but the program was suspended in January and that month sales dipped to 11.95 per cent. Story continues below advertisement Sales further fell to 6.8 per cent in February with the loss of the federal rebate program, and 6.53 per cent in March. They climbed slightly in April after Quebec reintroduced its own provincial rebate, which will be gradually phased out by January 2027. 'If we are going to hit the 2026 mandated target of 20 per cent EV sales, you would have to grow ZEV sales by 180,000 units,' Kingston said. 'There is simply no way that that can occur on such a short timeline, given all of the current market forces at play.' 2:24 BIV: EV sales in Canada plummet over last year While the government has indicated it plans to bring back some form of consumer rebate for electric vehicles, Kingston said making such a promise without a firm timeline for implementation promises to undermine EV sales even further. Story continues below advertisement Industry Minister Mélanie Joly said in May the government was looking at bringing back 'support programs' for EVs. Last month, Environment Minister Julie Dabrusin told The Canadian Press that Ottawa is working on bringing back a rebate program. The Liberal party's election platform promised to look at ways to 'reintroduce a purchase incentive worth up to $5,000.' 'Comments from ministers in the public suggesting that an EV incentive is coming back are extremely damaging,' Kingston said. 'If the government is going to bring it back, they've got to be clear about that with the plan and the timeline. And it has to be quick because if you tell people it's going to be in three months, then no one will purchase an EV for the next three months.' 5:14 Why EV Sales are suddenly slowing down Transport Canada is holding consultations on the rebate program. Hyundai Canada CEO Steve Flamand, who has called for the rebate to return, is meeting with department officials to discuss it next week. Story continues below advertisement 'For us, the program worked quite well,' Flamand told The Canadian Press. He added the sudden end of the iZEV program disrupted his company's supply chains. 'Obviously, it needs to be predictable, it needs to be stable, because our business does not shift in a matter of a couple of days,' he said. 'It pivots in a matter of six-month tranches.' Flamand said his company isn't opposed to the EV mandate, as long as it aligns with market demand. 'We believe in the cause, but right now I think 20 per cent… it's just not realistic. Nobody's going to do that,' he said. 'So having an unrealistic mandate without the natural market demand for it is a recipe for a disaster.' Kingston said bringing back the rebate program wouldn't be enough on its own to meet the EV mandate. 'Just to give you a sense of what the cost would be if you were to try and put in place a $5,000 incentive and increase sales by an additional 180,000 vehicles to meet the 2026 target, you'd be talking about nearly a billion dollars in spending,' he said. 'That is not a sustainable policy.' The government spent nearly $3 billion in five years on its EV rebates program.
National Observer
03-07-2025
- Automotive
- National Observer
Automakers hopeful that Carney will repeal EV sales mandate
The head of an organization representing automakers said he's "cautiously optimistic" after meeting with Prime Minister Mark Carney to urge him to repeal the electric vehicle sales mandate. Canadian Vehicle Manufacturers' Association CEO Brian Kingston joined the CEOs of Ford Canada, Stellantis Canada and GM Canada in a meeting with the prime minister on Wednesday in Ottawa. Along with discussing the impact of U.S. tariffs — the primary focus of the meeting — the automakers told Carney there's no way the industry can meet the targets set out in the EV mandate. The industry has long argued the mandate is unnecessary since Canada already has other policies to meet its emissions-reduction targets. "Why would you put an EV mandate on top of your existing (greenhouse gas) regulations? It makes absolutely no sense," Kingston told The Canadian Press. "Now, what's changed since it was designed and came into force is that we've had this collapse in EV sales." The EV sales mandate requires that 20 per cent of all new light-duty vehicles sold in Canada next year be zero-emission. The target rises annually to 100 per cent by 2035. The head of an organization representing automakers said he's "cautiously optimistic" after meeting with Prime Minister Mark Carney to urge him to repeal the electric vehicle sales mandate. The most recent data from Statistics Canada shows EVs accounted for just 7.53 per cent of all new vehicles sold in Canada in April. EV sales peaked at 18.29 per cent in December, the last month before funding ran out of the popular Zero-Emission Vehicles rebate program. Known as iZev, the rebates offered up to $5,000 off the cost of a new electric vehicle, but the program was suspended in January and that month sales dipped to 11.95 per cent. Sales further fell to 6.8 per cent in February with the loss of the federal rebate program, and 6.53 per cent in March. They climbed slightly in April after Quebec reintroduced its own provincial rebate, which will be gradually phased out by January 2027. "If we are going to hit the 2026 mandated target of 20 per cent EV sales, you would have to grow ZEV sales by 180,000 units," Kingston said. "There is simply no way that that can occur on such a short timeline, given all of the current market forces at play." While the government has indicated it plans to bring back some form of consumer rebate for electric vehicles, Kingston said making such a promise without a firm timeline for implementation promises to undermine EV sales even further. Industry Minister Mélanie Joly said in May the government was looking at bringing back "support programs" for EVs. Last month, Environment Minister Julie Dabrusin told The Canadian Press that Ottawa is working on bringing back a rebate program. The Liberal party's election platform promised to look at ways to "reintroduce a purchase incentive worth up to $5,000." "Comments from ministers in the public suggesting that an EV incentive is coming back are extremely damaging," Kingston said. 'If the government is going to bring it back, they've got to be clear about that with the plan and the timeline. And it has to be quick because if you tell people it's going to be in three months, then no one will purchase an EV for the next three months.' Transport Canada is holding consultations on the rebate program. Hyundai Canada CEO Steve Flamand, who has called for the rebate to return, is meeting with department officials to discuss it next week. "For us, the program worked quite well," Flamand told The Canadian Press. He added the sudden end of the iZEV program disrupted his company's supply chains. "Obviously, it needs to be predictable, it needs to be stable, because our business does not shift in a matter of a couple of days," he said. "It pivots in a matter of six-month tranches." Flamand said his company isn't opposed to the EV mandate, as long as it aligns with market demand. "We believe in the cause, but right now I think 20 per cent... it's just not realistic. Nobody's going to do that," he said. "So having an unrealistic mandate without the natural market demand for it is a recipe for a disaster." Kingston said bringing back the rebate program wouldn't be enough on its own to meet the EV mandate. "Just to give you a sense of what the cost would be if you were to try and put in place a $5,000 incentive and increase sales by an additional 180,000 vehicles to meet the 2026 target, you'd be talking about nearly a billion dollars in spending," he said. "That is not a sustainable policy." T
