Canadian Auto Manufacturers Urge Scrapping EV Mandate Amid 44% Sales Drop and Unrealistic 2026 Target

The Canadian auto industry is facing a tough road ahead. With electric vehicle sales dropping and ambitious government targets looming, there's a growing call to rethink the current EV mandate. It seems like a lot of things need to line up perfectly for these goals to be met, and right now, that's just not happening. This article looks at why car makers are worried, what's happening with EVs in other places, and how these mandates could impact everyone involved.

Key Takeaways

• Canadian car makers are asking the government to drop the EV sales mandate because sales are down a lot, and the 2026 target seems impossible.

• Rules about electric vehicles in North America might not work out because people don't always want EVs, and getting the right minerals for batteries takes a really long time.

• It's probably a good idea to get rid of these strict EV rules. They're making things hard for Canadians, EVs don't work well in cold weather, and a lot of money is being spent without clear results.

• These EV rules could really hurt the Canadian car industry financially and might make things worse for regular people who buy cars.

• Many EV owners actually want to go back to regular gas cars, which shows that the push for EVs might be moving too fast for what people actually want or need.

Canadian Auto Manufacturers Urge Scrapping EV Mandate, Citing Unrealistic 20% Sales Target for 2026 Amid 44% Sales Drop

Canadian auto manufacturers are pushing back hard against the federal government's EV mandate. They're saying the targets are just not realistic, especially the one aiming for 20% of all new vehicle sales to be electric by 2026. Recent sales figures show a significant drop, making that goal seem way out of reach. It's a tough situation, and the industry is worried about the impact on their businesses and consumers.

The Electric Vehicle Availability Standard

The Electric Vehicle Availability Standard, released by Environment and Climate Change Canada, sets targets for zero-emission vehicle (ZEV) sales. These targets start at 20% in 2026, jump to 60% in 2030, and aim for 100% by 2035. ZEVs include battery electric vehicles, plug-in hybrids (with a decent battery range), and fuel-cell vehicles. The government believes this will ensure enough ZEV supply to meet demand, give consumers more choices, and cut down on wait times. They're also counting on tech improvements to help bridge the charging infrastructure gap, especially for those in rural areas.

Doubt Cast on ZEV Supply Needs

There's growing skepticism about whether we even need more ZEV supply. Some reports indicate that EV inventories are growing, and the Canadian standard might not align well with vehicle regulations in the US. It's a complex issue, and there are concerns about whether the demand is really there to justify such aggressive mandates. The industry is worried about being forced to sell EVs that consumers don't necessarily want.

Conditions for 100% ZEV Sales by 2035

Achieving 100% ZEV sales by 2035 requires a lot of things to go right. Here are some of them:

• No changes in government (i.e., no Conservative governments).

• Significant decrease in battery prices.

• Development of solid-state batteries.

• Expansion of charging stations.

• Effective battery recycling programs.

• Increased EV adoption in the prairie provinces.

• Reintroduction of ZEV subsidies by Ontario, and continuation of federal subsidies.

It's a long list, and any one of these factors could derail the entire plan. The auto manufacturers are arguing that the government is being overly optimistic and not taking into account the real-world challenges of transitioning to an all-electric vehicle market. The climate change policy is a mandate from the Justin Trudeau era, and requires carmakers to achieve 20 percent EV sales by 2026 or purchase credits. The 20% EV sales target by late 2026 is looking increasingly difficult to achieve.

North American EV Mandates Destined to Fail

Consumer Preferences Overlooked

It's pretty clear that governments pushing EV mandates might be missing a key point: people buy what they want. You can't just tell everyone to switch to electric and expect them to happily comply. Consumer preferences are a big deal, and forcing EVs on people who aren't interested is a recipe for disaster. People like what they like, and that's not always easy to change with top-down rules.

Unrealistic Mineral Acquisition Timelines

Getting all the minerals needed for EV batteries is a huge challenge. It takes a long time to open new mines and refine those materials. The International Energy Agency says we'd need a ton of new mines to meet EV goals by 2030. For some perspective, it can take anywhere from 6 to 18 years to get a new mine up and running. It's a slow process, and the current timelines for EV mandates might be way too optimistic.

The Need for New Mines

To meet the demand for EVs, we need a lot more mining. It's not just about digging stuff up; it's about doing it responsibly and sustainably. The current number of mines just isn't enough to support the planned EV transition. We need to find new sources and develop them quickly, but that's easier said than done. The whole supply chain needs a major overhaul to keep up with the electric vehicle mandates.

The push for EVs is running into some serious roadblocks. It's not just about making the cars; it's about getting the materials to build them. Without a massive increase in mining, these mandates are going to be tough to achieve. It's a complex problem with no easy solutions.

It's Time to Abandon Reckless EV Mandates

It's becoming increasingly clear that Canada's aggressive push for electric vehicle adoption needs a serious re-evaluation. The current approach, driven by mandates and subsidies, is not only proving to be economically unsound but also out of touch with the realities faced by everyday Canadians. Continuing down this path risks significant harm to our economy and way of life.

Societal Re-engineering Harms Canadians

Pouring billions of tax dollars into EV initiatives without proper accountability is essentially a social experiment at the expense of Canadian families. This is especially true for those living in rural areas, who often rely on vehicles for work and daily life. The current EV push disproportionately affects these communities, forcing them into a transition that isn't practical or affordable.

EVs Unreliable in Winter Climates

Let's face it: EVs, with current technology, aren't exactly reliable in Canada's harsh winter climate. Cold weather significantly reduces battery range, making long trips risky and charging infrastructure even more critical. For many Canadians, especially those in colder regions, EVs simply aren't a viable option right now. The Liberal government needs to consider this.

Billions Handed Out Without Accountability

The amount of money being thrown at EV companies is staggering, and there's little to no accountability for how these funds are used. It's time to ask tough questions about where this money is going and whether it's actually benefiting Canadians. We need transparency and oversight to ensure that taxpayer dollars are being used wisely, not just funneled into projects that may never deliver on their promises.

The current EV mandate feels like a top-down imposition that ignores the needs and preferences of ordinary Canadians. It's time for a more balanced and realistic approach that considers the economic realities and practical challenges of transitioning to electric vehicles.

Here's a quick look at the potential costs:

Year	Projected Losses (Auto Sector)
2025-2050	$1.3 Trillion
Abatement Costs (2030)	$2,800/t

It's time to abandon these reckless EV mandates and adopt a more sensible approach that prioritizes affordability, reliability, and the needs of all Canadians. The Canadian auto industry is at stake.

The Economic Impact of EV Mandates on the Canadian Auto Industry

Projected Losses for the Auto Sector

It's no secret that the Canadian auto industry is facing some serious headwinds. The EV mandate, with its aggressive targets, is adding fuel to the fire. One analysis suggests that if a mandate is needed to push consumers toward EVs, it could really hurt the industry. The losses could be permanent unless EV production costs drop significantly. It's a big gamble, and the stakes are high.

Abatement Costs of Greenhouse Gas Emissions

Okay, so the idea is to cut greenhouse gas emissions, right? But at what cost? Some models show that even if we hit those emission reduction targets, the cost per ton of abatement could be pretty steep. We're talking thousands of dollars per ton by 2030. Is it worth it? That's the question everyone's asking. The EV mandate might not be the most efficient way to reach our climate goals.

Mandates Make Consumers Worse Off

Here's the thing: people buy stuff because they think it's worth the money. Cars, computers, whatever. But if the government has to force people to buy EVs, that means they don't see the value. And if people are being forced to buy something they don't want, that's not good for anyone. It's like, if the government has to step in and say, "You have to buy this," then something's probably wrong. The recent drop in zero-emission vehicle sales is a worrying sign.

It's a tough situation. On one hand, we want to reduce emissions and fight climate change. On the other hand, we don't want to destroy the auto industry or make consumers worse off. Finding the right balance is going to be tricky.

Here's a quick look at some potential outcomes:

• Higher prices for traditional cars.

• Manufacturers losing money on EVs.

• Consumers stuck with vehicles they don't really want.

And here's a table showing potential losses:

Timeframe	Projected Losses
2025-2050	$1.3 Trillion
By 2030	$140 Billion

It's a complex issue with no easy answers. The 20% EV sales target by 2026 seems increasingly unrealistic.

Automakers to Trump: Please Require Us to Sell Electric Vehicles

It sounds wild, right? Automakers begging Trump to keep EV mandates? But that's the gist of it. After sinking billions into electric vehicle development, some manufacturers are worried about being undercut by cheaper, gas-powered cars if mandates disappear. It's a weird situation where regulations are actually providing a safety net for massive investments.

Industry Strategy to Maintain Mandates

So, what's the play here? Word on the street is that some of the big players – Ford, GM, Stellantis – are working together to convince Trump to keep the federal mandates in place. They've already invested a ton in the EV transition, and without those mandates, they fear they'll be stuck selling EVs at a loss. It's like they're saying, "Please, make us sell these things!"

Automakers' Investment in EV Transition

We're talking serious money here. Automakers have poured over $160 billion into the EV transition. That's a huge gamble, and they need some assurance that there will be a market for these vehicles. The mandates provide that assurance, even if it means forcing consumers to buy EVs. It's a high-stakes game, and they're trying to protect their investments. Ford even delayed production of electric SUVs at its Oakville, Ontario plant, from 2025 to 2027. Tied to this production was a $1.8 billion investment, including some $590 million in government subsidies. Meanwhile, Ford will keep the Oakville plant busy producing 100,000 gas and diesel-powered Super Duty trucks. The company insists that it is still committed to EVs.

Tesla's Position on Tax Credits

Tesla is in a different boat. They only make EVs, so they've been raking in cash selling emissions credits to other automakers. Elon Musk, who might be heading up the Department of Government Efficiency, isn't too worried about the $7,500 tax credit for EV buyers. He figures getting rid of it would hurt his competitors more than it hurts Tesla. It's all about playing the game to stay on top. He is more focused on getting government approval for his self-driving cars.

It's a strange situation where automakers are essentially asking the government to force them to do something they've already committed to. It highlights the complexities and uncertainties of the EV transition, and the lengths to which companies will go to protect their investments.

The core issue is that these companies have bet big on EVs and now need the government to ensure that bet pays off.

Unloved EVs In Europe

Plunging Sales in Germany and France

It looks like the EV revolution might be hitting a snag in Europe. Sales figures are showing a pretty significant drop in some of the biggest markets. In August 2024, Germany saw new battery-powered EV sales plummet by almost 70%, landing at just 27,024 units. France, the second-largest EV market in the EU, wasn't doing much better, with a 33% decrease to 13,143 sales. It's a worrying trend that has a lot of people wondering what's going on with electric car sales over there.

Manufacturers at Risk of Fines

This sales slump isn't just bad news for the environment; it's also putting automakers in a tough spot. The European Automobile Manufacturers Association (ACEA) is worried that this "continued downward trajectory" could mean manufacturers face massive fines – we're talking billions of euros – for not meeting vehicle emissions targets. Some big names like Volkswagen, BMW, and Renault have already suggested the EU needs to push back those targets. It's a high-stakes situation where EV sales in Western and Central Europe are crucial for avoiding penalties.

Slowdown in Used EV Demand

It's not just new EVs that are struggling; the used market is also feeling the pinch. In the UK, demand for used EVs has slowed down so much that leasing companies are taking unexpected losses. The "residual value" of these cars at the end of their lease has dropped from around 60% to just 35%. This is terrible news for anyone who bought a new EV privately, because they'll not only pay more upfront, but they'll also get way less when they trade it in. Some people are blaming the UK government's decision to delay the ban on new gas and diesel cars, along with a lack of incentives for used EVs. Others think it's because older EVs have poorer battery performance.

What Happened to EVs?

It feels like just yesterday everyone was talking about how EVs were the future, and now? The conversation has definitely changed. What exactly happened to slow down the electric vehicle revolution?

Slowdown in Adoption Rate

The initial surge in EV adoption seems to have hit a wall. It's not that people hate EVs, but the rate at which new drivers are switching over has slowed considerably. Several factors are at play here. For one, the early adopters – the tech enthusiasts and environmental advocates – have already made the switch. Now, convincing the average consumer is proving to be a tougher sell. The Canadian electric vehicle industry experienced a significant decline in Q1 2025, with EV registrations dropping over 56.1% compared to Q4 2024.

Insufficient Charging Infrastructure

One of the biggest hurdles is still the lack of convenient and reliable charging infrastructure. Imagine planning a road trip and constantly worrying about where you'll find the next charger, and if it will even be working when you get there. It's a real concern for many potential EV buyers.

• Limited availability of charging stations, especially in rural areas.

• Concerns about charger reliability and maintenance.

• Long charging times compared to filling up a gas tank.

Lack of Affordable EV Options

While EV prices have come down somewhat, they're still generally more expensive than comparable gasoline-powered cars. For many families, the upfront cost is simply too high, even with government incentives. Plus, the used EV market is still developing, making it harder to find affordable options. Fewer Canadians are considering electric vehicles, partly due to a decline in available incentives, such as the federal incentive program reaching its cap.

The reality is that EVs need to be more accessible and practical for the average person. Until the price comes down, the charging infrastructure improves, and the range anxiety disappears, the mass adoption of EVs will continue to face challenges. It's not about whether EVs are a good idea in theory, but whether they work in practice for everyday Canadians. Electric vehicle sales in Canada have declined for three consecutive years due to consumer concerns about reduced government incentives, inadequate charging infrastructure, and high costs.

EV Hell Continues

It seems like the electric vehicle dream is hitting some serious bumps in the road. From charger network shakeups to plummeting resale values and even safety concerns, the EV landscape is looking a bit grim.

Tesla Charger Team Fired

Just a couple of months after Tesla's charging system was hailed as the new industry standard, Elon Musk decided to give the entire EV charging team the boot. What does this mean for the future of charging infrastructure? It's anyone's guess, but it definitely doesn't inspire confidence.

Hertz Offloads More Electric Cars

Hertz is continuing to reduce its EV fleet. After initially dumping 20,000 electric cars earlier this year, they're now planning to sell off another 10,000. It seems they're realizing that EVs aren't the rental goldmine they thought they would be. This move raises questions about the true demand for EVs in the rental market and beyond. Maybe Hertz's EV strategy wasn't so great after all.

Ford's EV Unit Losses

Ford's EV division is bleeding money. In the first quarter, they lost a staggering $1.3 billion, which translates to $132,000 for every EV sold. And sales are down 20% compared to last year. Ford is bracing for EV losses of around $5 billion for the year. The hope is that one day, they'll be able to sell EVs for enough to cover production costs, let alone recoup development expenses.

It's becoming increasingly clear that the EV transition isn't as smooth as some had hoped. Challenges related to infrastructure, consumer demand, and profitability are creating a perfect storm of problems for automakers and consumers alike.

Canada Launches New Offensive in EV Manufacturing Subsidy War

Canada is really trying to get ahead in the EV game, and it looks like they're pulling out all the stops. The government is throwing its hat in the ring with new tax credits aimed squarely at boosting EV production. It's all part of a bigger plan to compete with the U.S. and their Inflation Reduction Act production plant, which has been luring investments south of the border. But will it work?

New Tax Credit for EV Production

The proposed 2024 budget includes a new tax credit that gives manufacturers a 10% subsidy on the capital cost of buildings used for key parts of EV production. This is on top of an existing tax credit from 2023, which already subsidizes 30% of EV makers’ equipment costs. The idea is to make Canada a more attractive place to build EVs.

Targeted Subsidies for Auto Manufacturers

Unlike the 2023 tax credit, this new one is specifically for auto manufacturers who are serious about building an EV supply chain in Canada. To qualify, manufacturers need to have existing investments in three key areas:

• Cathode active material manufacturing

• Battery cell production

• EV assembly

Commitment to Building an EV Supply Chain

These tax credits are a direct response to the U.S. Inflation Reduction Act, which ties subsidies for EVs and batteries to domestic sourcing. While the IRA has been successful in attracting investments in U.S. battery facilities, it hasn't done as well in getting the cars themselves made there. Canada is hoping that with both the 30% equipment tax credit and the new 10% tax credit, they can gain a competitive edge over the U.S. when it comes to making EVs.

It's a bold move, but it's also a risky one. If there's a change in government, these subsidies could disappear. The leader of Canada’s Official Opposition has already said he's against corporate handouts and believes businesses should make money, not take money. So, the future of these subsidies is far from certain.

It's a bit of a gamble, but Canada is clearly serious about becoming a major player in the EV market. Whether these subsidies will be enough to achieve that goal remains to be seen. It's a complex situation, and there are a lot of factors at play. For example, a new law in Canada has significantly reduced tax incentives for electric vehicles and renewable energy.

Huge Percentage of EV Owners Want to Go Back to Normal Cars, Study Finds

It seems the electric vehicle revolution might be hitting a snag. A recent study indicates a significant portion of EV owners are experiencing buyer's remorse. The numbers suggest that the transition to electric isn't as smooth as some might have hoped.

46% of Americans Want to Revert to Standard Vehicles

According to a study by McKinsey and Co., nearly half of American EV owners are considering switching back to gasoline-powered cars for their next vehicle purchase. This suggests that the initial enthusiasm for EVs might be waning as owners encounter real-world challenges. It's a pretty big deal when almost half the people who made the switch are thinking about going back.

Postponing EV Switch

Beyond those who actively want to switch back, a large percentage of people are delaying their plans to buy an EV. The study also found that 58% of Americans are likely to keep their current cars for longer, and 44% are likely to postpone a possible switch to an EV. This hesitation could be due to a number of factors, including concerns about charging infrastructure, battery life, or the overall cost of ownership. People are holding onto their current rides, and that says something.

Biden Administration's EV Sales Goals

The Biden Administration has set an ambitious goal to have EVs make up 50% of all new car sales by 2030. The EPA issued new regulations in March that force manufacturers to ensure that up to 56% of light-duty vehicles are EVs by 2032. But with a large percentage of current EV owners wanting to switch back to gasoline cars, and many more delaying their EV purchase, achieving this target could be a major challenge. It's like trying to fill a bucket with a hole in the bottom. The administration's EV sales goals might need a serious reality check.

It's important to consider that early adopters of any new technology often have different experiences and expectations than the general population. The initial wave of EV buyers might have been more tolerant of the limitations and inconveniences associated with electric vehicles. As EVs become more mainstream, the expectations of buyers will likely change, and manufacturers will need to address these concerns to maintain sales momentum. Maybe the honeymoon is over, and now it's time for the real work to begin.

Study: World Would Need 55% More Copper Mines to Meet EV Transition Goals

It's no secret that electric vehicles need a lot of copper. Way more than your average gas-guzzler. And a recent study is highlighting just how much more we'll need if we're serious about this whole EV revolution. Basically, we're talking about needing a whole bunch of new copper mines, and fast.

Projected Copper Supply and Demand

So, how much copper are we actually talking about? Well, according to a report by the International Energy Forum, just to keep up with current trends, we need to mine 115% more copper in the next 30 years than we have in all of history up to now. That's a crazy amount. But if we want to electrify the world's car fleet? Forget about it. The demand skyrockets.

Increased Mining for Vehicle Electrification

To make the EV dream a reality, the study says we'd need to bring 55% more new copper mines into production than we would otherwise. Think about that for a second. That's a massive increase in mining activity, and it comes with all sorts of environmental and social implications. It's not as simple as just digging more holes in the ground.

Copper Production Cannot Keep Pace

Here's the kicker: it's not clear that copper production can actually keep up with this kind of demand. EVs require about 83 kg of copper per car, while a regular ICE vehicle needs only 23 kg. That's a huge difference. And with everyone and their mother trying to switch to EVs, the pressure on copper supplies is only going to increase. It's a potential bottleneck that could seriously slow down the EV transition.

The big question is, where is all this copper going to come from? Opening new mines takes time, money, and often faces significant opposition from environmental groups and local communities. Plus, there's the whole issue of whether we can even extract that much copper without causing serious damage to the planet. It's a complex problem with no easy answers.

So, What's Next for EVs in Canada?

It's pretty clear that pushing electric vehicles so hard, so fast, isn't really working out. The numbers don't lie – sales are down, and it seems like a lot of folks who tried an EV are thinking about going back to gas. Plus, the whole idea of getting enough materials and building all the charging stations we'd need? That's a huge mountain to climb. Maybe it's time for the government to take a step back and look at what's actually happening on the ground, instead of sticking to these super ambitious goals. We all want a cleaner future, but it has to be something that makes sense for everyday Canadians, not just a dream that costs a ton and doesn't quite fit with reality.

Frequently Asked Questions

What is Canada's EV mandate?

The Canadian government's Electric Vehicle Availability Standard requires that 20% of new vehicle sales in 2026 be zero-emission vehicles (ZEVs), increasing to 60% by 2030 and 100% by 2035. This includes battery electric, plug-in hybrid, and fuel-cell vehicles.

Why are some people saying EV mandates will fail?

Many experts believe these mandates are unrealistic because consumer preferences aren't easily changed, and getting enough minerals for EV batteries takes a very long time. For example, meeting 2030 EV goals would need many new mines, which take years to develop.

Are EVs practical for Canadian winters?

EVs, especially with current technology, can struggle in Canada's cold winters, affecting battery range and performance. Also, the charging infrastructure isn't widespread enough, particularly in rural and northern areas.

Why do some automakers want EV mandates to continue?

Automakers have invested billions in EV technology and fear that without mandates, they'd lose money to cheaper gas cars. They want the rules to stay so they can keep selling EVs and recover their investments.

What's happening with EV sales in Europe?

In Europe, EV sales have dropped significantly in countries like Germany and France. This slowdown is making manufacturers worried about facing big fines if they don't meet emissions targets, and it's also hurting the value of used EVs.

Why has the adoption of EVs slowed down?

The main reasons for the slowdown include not enough charging stations, EVs still being too expensive compared to gas cars, and the fact that many new EVs are large, which isn't always environmentally or economically smart.

Do EV owners like their cars?

A recent study found that nearly half of American EV owners want to go back to regular gas cars for their next purchase. Many people are also choosing to keep their current cars longer or delay switching to an EV.

What's the problem with getting enough materials for EVs?

Meeting EV goals would require a huge increase in copper mining. One study suggests the world would need 55% more copper mines than currently planned just to electrify vehicles, which is a massive challenge given how long it takes to open new mines.