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Automotive

Carney’s exercise in stupidity

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CAE Logo By Dan McTeague

This past Tuesday, the Conservative Party put forward a motion in parliament calling on the Liberal government to immediately end their ban on gas-and-diesel driven Internal Combustion Engine (ICE) vehicles, which will take full effect in 2035.

Arguing for the motion, Melissa Lantsman rightly said, “Nobody is denying people the choice to drive an electric car. There is nothing wrong with that. What is wrong is the government mandating that everybody drive an electric car.”

Unfortunately for all of us, MPs voted 194-141 to keep the EV mandate in place.

The vote itself is unsurprising, since, despite Mark Carney’s campaign-long insistence that he shouldn’t have to answer for the policies of his predecessor, he was a Trudeau advisor and confidant for years, and there is virtually no daylight between their governments on any major issue.

Yes, even on the carbon tax.

Still, this will be the first time that many Canadians even hear about the ICE ban, the implementation of which begins in earnest on January 1st, just about six months from now. At that time, the government will mandate that 20 per cent of all new light-duty vehicles (passenger cars, SUVs, and pickups) must be classified as “zero-emisson,” or Electric Vehicles (EVs).

How, you might ask, does the government expect automakers to ensure that, come January, one-out-of-five car-buying Canadians will choose to purchase an Electric Vehicle? Especially since consumers have been skeptical of EVs thus far, with just 13.7 per cent sold in Canada last year.

(And, as Tristin Hopper recently pointed out, even that number is misleading. “These sales are disproportionately concentrated in a single province…. Of the 81,205 zero-emission vehicles sold in Canada in the last quarter of 2024, 49,357 were sold in Quebec.” That’s 60 per cent!)

Well, the answer to that question is that manufacturers will be required to submit annual reports to the Ministry of Environment and Climate Change, detailing their compliance with the government’s EV targets. If they don’t meet their EV sales quota, they will face significant financial penalties.

To avoid those penalties, automakers will be forced into one option. As Conservative MP Cheryl Gallant explained, “How will carmakers ensure they sell enough electric vehicles? They will do it by drastically raising the price of internal combustion vehicles!”

That’s right, their only option will be to start increasing the price of the cars and trucks Canadians want to buy, in order to force us to buy ones we don’t want to buy.

This is madness.

To reiterate what I’ve said over and over and over again, the Liberals’ EV mandate is bad policy.

It forces Canadians to buy a product that is expensive. EVs cost more than ICE vehicles, even factoring in the government subsidies on which the EV industry has perpetually relied. Ottawa’s $5,000-per-EV rebate program ran out of money six months ago and was discontinued, at which time EV numbers really began to fall off, which is why the Liberals stated desire to toss more tax dollars at bringing it back.

And it forces us to buy a product that is poorly suited for Canada. EV batteries are bad at holding a charge in the cold, and are just generally less reliable.

We don’t have the infrastructure to support this EV transition. Our electrical grid is already strained, and doesn’t have the capacity to support millions of EVs being plugged in nightly, especially as the Trudeau/Carney Liberals progressively push us to replace reliable energy sources, like oil and natural gas, with unreliable “renewables.”

On top of all that, where do they think we’re going to get all of these glorified golf carts they’re trying to force on the Canadian public? Even with the estimated $52 billion that the Trudeau and Ford governments have thrown at the industry to subsidize the manufacture of EVs in Canada, we don’t make anywhere near enough EVs to support a full-transition.

That’s likely why left-leaning outlets have started calling on Mark Carney to lift the tariff on Chinese EVs. Taking advantage of EV mandates might be smart business for China — flood the markets of gullible nations with EVs which are cheaper than what domestic manufacturers can produce, and then jack up the price once the mandates are fully implemented and they have no competition from either traditional vehicles or other EV companies.

But us going along with that scheme is the definition of bad business. Which is probably why our automakers have started to admit that the mandates are unrealistic and call for them to be repealed.

Tuesday’s vote went the wrong way for Canadians, but kudos to the Conservatives for bringing this motion forward in the first place. I only wish they had started talking about this sooner. A national campaign would have been the perfect time to call the country’s attention to a policy which people are only vaguely aware of and which, if enacted, will make all of our lives harder and more expensive.

But there’s no time like the present. The more Canadians hear about these EV mandates, the more they hate them. If we make enough noise about this, we might just be able to change course and avert disaster.

Here’s hoping.

Dan McTeague is President of Canadians for Affordable Energy.

An 18 year veteran of the House of Commons, Dan is widely known in both official languages for his tireless work on energy pricing and saving Canadians money through accurate price forecasts. His Parliamentary initiatives, aimed at helping Canadians cope with affordable energy costs, led to providing Canadians heating fuel rebates on at least two occasions. Widely sought for his extensive work and knowledge in energy pricing, Dan continues to provide valuable insights to North American media and policy makers. He brings three decades of experience and proven efforts on behalf of consumers in both the private and public spheres. Dan is committed to improving energy affordability for Canadians and promoting the benefits we all share in having a strong and robust energy sector.

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Automotive

Michigan could be a winner as companies pull back from EVs

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From The Center Square

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Federal deregulation and tax credit cuts are reshaping the auto industry, as Ford Motor Co. and General Motors Co. scale back electric vehicle production and redirect billions into hybrids and traditional gas-powered cars.

Yet, the Michigan automotive industry could see increased investments from those same companies as they reallocate that funding.

While both Ford and GM previously announced ambitious targets to expand electric vehicle fleets over the next decade, they are now cutting back on electric vehicle production.

That comes in response to federal deregulation of gas-powered vehicles, tax credit cuts, and the prospect of slowing consumer demand.

In August, Ford stated it was canceling plans to build a new electric three-row SUV. Instead, it is turning its focus to hybrid vehicles, including a massive $5 billon investment into a new “affordable” hybrid truck.

GM announced similar plans earlier this month. It will be cutting back electric vehicle production at Kansas and Tennessee plants, anticipating a decline in demand once federal tax credits end Sept. 30.

This all could have a real impact on the electric vehicle industry across the nation and experts are already anticipating that.

A new forecast by Ernst & Young Global Limited now predicts a five-year delay in electric vehicles making up 50% of the new car marketshare. While previous forecasts predicted America would reach that mark by 2034, the new forecast pushed that back to 2039.

“The U.S. faces policy uncertainty, high costs, and infrastructure gaps,” said Constantin M. Gall, the company’s global aerospace defense and mobility leader.

Clean energy advocacy groups are decrying this move away from electric vehicle initiatives, largely blaming the Trump administration.

“The transition to electric vehicles now faces significant roadblocks,” said Ecology Center in an April report. “The Trump administration has rolled back key policies supporting clean transportation.”

It also pointed to a nationwide deregulation of the gas-powered vehicle industry for allowing those to remain “dominant” over electric vehicles.

“These actions prioritize fossil fuels over clean energy, threatening progress toward a sustainable transportation future,” the report stated.

While bad news for electric vehicle supporters, the Michigan automotive industry could be a winner as companies re-shift focus back to gas-powered and hybrid vehicles.

With billions of dollars previously allocated to federal pollution fines and electric vehicle costs now available for investment, GM now plans to increase production at a Detroit-area plant by 2027.

The Michigan-based company also recently announced plans to invest billions into another Michigan plant in Lake Orion Township.

For similar reasons, Ford’s CEO Jim Farley told analysts that the company anticipates monetary savings “has the potential to unlock a multibillion-dollar opportunity over the next two years.”

While Gov. Gretchen Whitmer has long been a proponent for the electric vehicle industry, she did recently emphasize her support for all Michigan-based manufacturing, no matter the type.

“We don’t care what you drive – gas, diesel, hybrid, or electric – as long as it’s made in Michigan,” she said following the GM Orion announcement. “Together, let’s keep bringing manufacturing home, growing the middle class, and making more stuff in Michigan.”

Elyse Apel is a reporter for The Center Square covering Colorado and Michigan. A graduate of Hillsdale College, Elyse’s writing has been published in a wide variety of national publications from the Washington Examiner to The American Spectator and The Daily Wire.

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Automotive

Canadians rejecting Liberal’s EV mandates because consumers are rational

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From Resource Works

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Bad policy, not misinformation, is to blame for the decline in EV sales

It was a clever move for federal minister Gregor Robertson to stand in Victoria and blame the oil and auto industries for spreading “misinformation” about electric vehicles.

If people don’t follow a government order, then someone else must have lied to them.

But the truth is simpler, and more uncomfortable for Ottawa and Victoria: Canadians are against aggressive EV mandates because the policies behind them are not based on reality.

Politicians have been pushing electric vehicles (EVs) as a cornerstone of the fight against climate change for years, promising a cleaner future through ambitious mandates and generous rebates.

All of this effort looked good on paper:  passing laws, handing out thousands (millions, billions) in subsidies, paving the way for Canada’s transition to an electric future.

But, in real life, it’s just not working out this way.

Why?  Because instead of crafting long-term rules based on the realities of infrastructure, cost, and consumer choice, Ottawa rushed ahead with policies that ignored market signals.

They assumed subsidies would keep EV sales flowing indefinitely, only to be shocked when sales plummeted once the rebates dried up.

Canadians are responding rationally to high prices, unreliable charging networks, and impractical mandates.

Not long ago, Ottawa set ambitious, unattainable targets: 20 percent zero-emission vehicle sales by 2026, 60 percent by 2030, and 100 percent by 2035.

British Columbia went further, aiming for 26 percent by 2026, 90 percent by 2030, and 100 percent by 2035.

In theory, it looked achievable. In practice, it’s been a wake-up call.

The numbers tell the story. Statistics Canada reported that EVs accounted for 18.29 percent of new vehicle sales in December 2024. Just four months later, when Ottawa’s iZEV program ran out of funds and provincial rebates ended, that figure crashed to 7.53 percent.

In British Columbia, once a leader in EV adoption, the market share dropped from nearly 25 percent in mid-2024 to 15 percent a year later.

Quebec, long the most EV-friendly province, saw a similar decline when its $7,000 subsidy was slashed nearly in half.

Why? Canadians have been very clear.

Cost is the biggest barrier, according to polls like this one from Ipsos in 2025. But this isn’t the only issue.

Ipsos found 56 percent of British Columbians oppose EV mandates, with even higher resistance among older households and those outside Metro Vancouver. People resent being told they must buy expensive cars they can’t easily charge or fully trust in harsh winters.

Subsidies made high sticker prices tolerable for middle-class families, but when the rebates vanished while mandates and fines remained, buyers walked away.

Barry Penner of the Energy Futures Institute put it bluntly: governments “put the cart before the horse,” demanding widespread adoption before ensuring affordability or infrastructure.

The financial penalties for automakers are steep. Missing federal targets by 10 percent could mean hundreds of millions in fines.

In British Columbia, dealers face $20,000 penalties for every gas-powered car sold over the mandated ratio. Those who can’t comply often buy credits—frequently from Tesla, a California-based company that benefits while Canadian businesses foot the bill. These rules aren’t just hitting “Big Oil”; they’re straining local dealers and sending money abroad.

Infrastructure is another glaring issue. Ottawa estimates Canada has 33,700 chargers today but needs 679,000 by 2040—an average of 40,000 new chargers annually for 15 years, a pace experts call unrealistic.

In British Columbia, Penner notes the province has just 5,000 chargers now and needs 40,000 more by 2030. Meeting the 2035 mandate would also require electricity equivalent to two additional Site C dams, even as B.C. relies on 20 to 25 percent of its power from external sources, often fossil fuels.

Canadians aren’t against cleaner technology—they’re against being forced into choices that don’t fit their lives. The frustration stems from policies that feel disconnected from the realities of cost, convenience, and infrastructure. More blame or moralizing won’t fix this.

Penner has urged governments to “take our foot off the gas and realign our policies with reality.”

That could mean reinstating rebates if mandates persist, investing heavily in charging networks, or setting broader emissions targets that give consumers real choices instead of rigid quotas.

The EV dream will keep stalling unless that happens. It’s not because Canadians don’t know what’s going on; it’s because governments made decisions based on wishful thinking.

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