The feds want more electric cars. Automakers want more people to actually buy them. Right now, neither side is getting what it wants.
What happened: After meeting with Prime Minister Mark Carney this week, the CEOs of Ford Canada, GM Canada, and Stellantis Canada are calling on Ottawa to axe its zero-emission vehicle (ZEV) mandate — a policy that will force automakers to make 20% of their new vehicles ZEVs by next year.
- That number jumps to 60% by 2030 and 100% by 2035. Automakers say hitting those targets is next to impossible right now, especially with federal EV rebates for buyers on pause.
Why it matters: Zero-emission vehicles made up just 6.5% of new auto sales in March. With U.S. tariffs already putting major pressure on the sector, automakers say forcing them to build more EVs than there’s demand for will worsen the crisis already hitting Canada’s auto industry.
- GM recently paused production at its electric van plant in Ontario and laid off half of its 1,200 workers — a move that the automaker says wasn’t a response to U.S. tariffs, but rather low demand for its EVs.
Big picture: A trade deal with the U.S. still seems like the only development that will truly move the needle for Canada’s auto sector. Still, given Trump’s insistence that the U.S. doesn’t need Canadian-built cars, it’s no sure thing auto tariffs will completely disappear even with a new deal.—LA