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 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."
The government spent nearly $3 billion in five years on its EV rebates program.
Comments
The big three automakers death spiral will continue if they continue to resist EV sales and sales mandates. The automakers only have themselves to blame for not moving forward with affordable EVs on their own. It won't take long before the big three sales will be taken over by other auto manufacturers that are more progressive and accept global trends, especially with BYD EVs sweeping the globe.
So sure, they have produced some EV models and sales are slow, but the big three can only blame themselves. Producing EV vehicles that the average family won't buy says it all. What they have done so far, was destined to fail when not targeting the average consumer, but a niche boy-toy market only.
YES. If the big three can't bilk the public, their business model might be in the toilet.
But even with the higher price, what you save in gasoline costs and repairs, over the life of the vehicle, actually makes EV's cheaper than gas guzzlers.
Neoliberal capitalism has to have us laser focused on the short term...less than a week quite often....for us to continue imagining EV's are too expensive.
For the future of our society and the health of the planet.....its internal combustion engines that are the economic albatrosses.
So proponents of our old ICE gas guzzlers are all in about ending the EV mandate.
Figures.
When they should be pushing the transition to electric themselves, they decide to stall and join the conservative rear guard action to keep polluting, inefficient vehicles on the road.
I suppose, when China leads the world in EV sales, and more North Americans see the advantages countries who've adopted them have.........
Big Fossil Climate killing fools will gin up a war with China.
Anything to keep gasoline allies raking in profits.........and the people paying the long term extra expenses that come with ICE cars. We should all know what the Hyundi salesman told us when we bought our EV Kona.
ICE dealerships don't make the big money on new car sales. Its selling those warranties that keep you coming back for repair of all those hundreds of moveable parts, NOT COVERED BY THE WARRANTY...that rakes in their profits.
Over 2000 moveable parts google says. EV's can have as low as 20....and in over 5 years of driving our Kona...only the 12 volt battery needed replacing.
A job any owner can do for herself....at a cost significantly lower than the dealership would ask.
What's not to love??
Hmm, impossible to meet. Having worked in large corporations, i know that there is no impossible to meet when it comes to sales targets. These companies simply do not want to shift their business model because it is harder to do than the status quo. With the lost revenue from maintenance of ICE vehicles, they are facing a new reality.
Perhaps they could start by buying into the end to end lifecycle of an EV. Offer programs to install chargers, setup their own onsite charging stations with exclusive use to their own customers. and in the future figure out ways to get involved with and monetize battery recycling. These are just a few ideas off the top of my head.
When i bought my EV, I felt it was a half hearted effort at a sale. Almost like they didn't want it to happen, but because i was set on buying an EV they went along. I am sure anyone who is on the fence is steered towards an ICE vehicle because that is what they know.
Change is hard, but not impossible.
Lead the way big 3, instead of showing how stagnant you are.