The greatest threat to the Canadian auto industry, the roughly
half-million jobs it supports, the $38-billion in exports it generates annually, and the billions in foreign direct investment it accounts for, is not U.S. President Donald Trump. His threat of automotive tariffs is
expected to disappear when Canadian-U.S. trade negotiations conclude.
The existential threat to Canada’s auto industry is our electric-vehicle mandate that mimics California’s.
What is now obvious to legacy U.S. automakers, if not others such as
Honda Motor Co., is that the California-driven zero-emission vehicle (ZEV) mandate from 2022, prohibiting the sale of internal combustion engine vehicles (ICEV) by 2035, will bankrupt them.
General Motors Co., which has invested heavily in ZEVs, is admitting slow progress and saying aloud that the 2035 ZEV mandate will compromise its business and cost jobs, a fate it is working to avoid through its all-out lobbying to stop it. GM has allies among Republicans and Democrats in the U.S. House of Representatives, which recently and decisively
voted 246-164 to support a resolution to revoke the California mandate.
The 2035 ZEV mandate is a policy that Justin Trudeau‘s Liberals adopted, and that the party doubled down on under Mark Carney,
pledging in its election platform to go further and “work with industry, labour and other stakeholders to develop a regulated sales requirement that at least 50 per cent of all new light duty vehicle sales be zero emissions vehicles in 2030.” This would include most autos Canadians rely on for their daily commutes, such as cars, minivans, SUVs and pickup trucks.
U.S. senators voted Wednesday evening to kill the electric-vehicle mandate that California and 11 other states wanted to impose in 2035
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Maybe that’s the goal though? Automobiles only for the wealthy? Let them eat cake?
The wealthy have already purchased their toys (with subsidies from all), and here we are?