Goodbye EV sales mandate, hello purchase rebates. Carney shakes up Canada’s auto industry

Posted by IHateTrains123

3 Comments

  1. IHateTrains123 on

    SS: Carney’s automobile strategy was released this morning, and as the leaks predicted he scrapped the EV mandate in exchange for stronger greenhouse gas emission standards and other measures. The [news release from the PMO’s office](https://www.pm.gc.ca/en/news/news-releases/2026/02/05/prime-minister-carney-launches-new-strategy-transform-canadas-auto) says the new measures include:

    **To accelerate investment in Canada’s auto manufacturing sector, Canada’s new government will:**

    * Allocate $3 billion from the [Strategic Response Fund](https://ised-isde.canada.ca/site/ised/en/programs-and-initiatives/strategic-response-fund) and up to $100 million from the [Regional Tariff Response Initiative](https://www.canada.ca/en/atlantic-canada-opportunities/services/regional-tariff-response-initiative/rtri-rda.html) to help the auto industry adapt, grow, and diversify to new markets.

    * Harness the [Productivity Super-Deduction](https://budget.canada.ca/2025/report-rapport/chap1-en.html#a6) and reduced corporate tax rates for zero-emission technology manufacturers to encourage investment in clean technologies and EVs.

    **To rationalise emissions reduction policies to focus on outcomes that matter to Canadians, Canada’s new government will:**

    * Introduce stronger **greenhouse gas emission standards** that put Canada on a path to achieve a goal of 75% EV sales by 2035 and 90% EV sales by 2040 – reducing our carbon footprint and securing Canada’s global leadership in clean energy.

    * These more stringent emissions standards will enable the Government of Canada to repeal the Electric Vehicle Availability Standard. This approach will allow manufacturers to use a wide array of technologies to meet the standards and respond to consumer preferences in the near-term, while driving EV adoption over time.

    **To strengthen domestic demand by making EVs more affordable and reliable for Canadians, Canada’s new government will:**

    * Launch a **five-year EV Affordability Program** to lower the cost of EVs for Canadians and create a stronger domestic consumer market.

    * The new $2.3 billion program will offer individuals and businesses purchase or lease incentives of up to $5,000 for battery electric and fuel cell EVs, and up to $2,500 for plug-in hybrids (PHEVs) with a final transaction value of up to $50,000 on cars made by countries Canada has free trade agreements with. To support the Canadian automotive industry, this $50,000 cap will not apply to Canadian-made EVs and PHEVs.

    * Enhance **our national EV charging network** through investments of $1.5 billion through the Canada Infrastructure Bank’s [Charging and Hydrogen Refueling Infrastructure Initiative](https://cib-bic.ca/en/charging-and-hydrogen-refuelling-infrastructure-initiative/), making it easier and more convenient for drivers to charge their EVs across the country.

    **To establish a comprehensive trade regime that strengthens the competitiveness of the auto sector, Canada’s new government will:**

    * Strengthen **Canada’s automotive remission framework** to reward companies that produce and invest in Canada.

    * Maintain **counter-tariffs on auto imports from the United States** to ensure a level playing field for Canadian automotive manufacturers in the domestic market.

    * Canada recently deepened its strategic partnership with the Republic of Korea by signing a memorandum of understanding (MOU) to strengthen Canada-Korea industrial collaboration for future mobility. This builds on other MOUs that Canada has signed with global automakers to promote cooperation.

    * Canada has also agreed to a new strategic partnership with China, a global leader in EV manufacturing, to further diversify trade and catalyse new investment in the automotive sector. The recently announced partnership will look to drive new Chinese joint venture investment in Canada and allow for a fixed volume of Chinese EV imports into the Canadian market.

    **To protect Canadian auto workers and businesses from immediate pressures while helping them bridge them to the future, Canada’s new government will:**

    * Provide support to employees through **a new Work-Sharing grant** – preventing layoffs and supporting worker retention so businesses can plan for the future.

    * Establish **a new workforce alliance** of industry, labour, and training partners to address bottlenecks and catalyse private investment.

    * Provide employment assistance and reskilling supports for up to 66,000 workers across Canada, including for displaced auto workers, with a $570 million investment.

    !ping Can

  2. ScythianUnborne on

    All of this is pretty much worthless and does nothing for anybody. We need to get cars off the road, reduce their burden on infrastructure, and get rid of dealerships and their financing. Only loans of up to four years with little to no interest, and taxes on weight, size, and utility, to get most new trucks and SUVs off the road too. We could and should have had a plethora of European and Japanese small car manufacturers and models in this country, without arcane import laws. Scrap them too, and bring their factories here.

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