COLUMN: On Parliament Hill – EV mandate cancelled and subsidizing U.S. cars

The Liberal government finally came around this week to announce their plans to reverse the EV mandate, something the Conservatives had been pushing since last year. Recently, Brian Kingston, President and CEO of the Canadian Vehicle Manufacturers’ Association called lifting this mandate the number one priority and the legislation itself “inexplicable.”

Despite the Liberal pause on the EV mandate in the fall, waiting on this long decision has created immediate and permanent damage. The resulting market ambiguity delayed long-term investment decisions.

It was the market uncertainty that resulted in car manufacturers laying off Canadian workers. To date, 5,500 Canadian auto sector direct jobs have been lost, including 3,000 at Stellantis, 1,200 at GM’s plant in Oshawa and 725 at Paccar. Sadly, the once very vibrant industry is in sharp decline.

Looking back at 2016, 2.3 million cars were assembled in Canada. Last year, that number was reduced to 1.2 million cars that were assembled in Canada.

Upon his return from Washington D.C., where he met with the president and vice president, MP for Bowmanville—Oshawa North, Jamil Jivani, reflected in the National Post about what things used to be like in his riding: “The GM plant in Oshawa often feels like a mythical place. Long-time residents in the region tell stories of a time when it was a hub of prosperity for tens of thousands of families. They say, when shifts would end, there were so many GM employees that some roads would become one-way streets so workers could drive home in an orderly fashion.” Life used to look very different for this manufacturing community.

Conservatives have been relentless in speaking up for auto workers during the last 10 years of Liberal government leadership. Despite the effort, production was still reduced by half. The Liberal EV mandate has been especially problematic for the industry because it dictates that 100 percent of new vehicle sales are electric by 2035. Conservatives knew this was unattainable with only 10 percent of cars in the third quarter of 2025 registered as zero-emission vehicles and demand falling to eight percent of new vehicle sales. The mandate was out of step with the Canadian market. Flavio Volpe, President of the Automotive Parts Manufacturer’s Association called the EV mandate “unachievable, unworkable, and not based in reality”.

Canadians are not flocking to purchase EVs. And it’s little surprise why. With the average cost of a new EV at $66,891, it represents a significant expense in the middle of the Liberal affordability crisis.

But there are other reasons.

Industry Minister Melanie Joly was recently asked in committee by Conservative MP Vincent Ho whether she would personally drive a Chinese-made EV. Her response: “I’m willing to drive a great Canadian-made vehicle.” Given that the government’s recent trip to China required burner phones for operational security reasons, her response was not surprising. When the minister was questioned how many Made-In-Canada EVs would qualify for the new subsidy, she acknowledged only one.

Canada has committed $53 billion in agreements to create a domestic EV supply chain, yet the majority of cars manufactured in Canada are gas-powered. As a result, critics argue that other countries could benefit most from this announcement. In fact, the rebate will now subsidize American EV producers, some that have relocated to the U.S. from Canada because of American tariffs. As MP Kyle Seeback asked recently during industry committee, why wouldn’t the government remove the American EVs from the subsidy funded by Canadian taxpayers? The prospect that up to $2.3 billion in taxpayer dollars will subsidize the American auto industry offers little assurance regardless of how noble the goal is for supporting workers.

This recent move is not about bringing hope to an industry that created buzz in their communities, provision for their families, and opportunity for generations—but about workers facing layoffs. Highly taxed lump-sum severance payouts are not offering much relief to the 1,200 former employees who are striving to meet mortgages, groceries and family expenses. Because bulk severances are taxed at a higher rate by the government up front, they will have to wait until next tax season to be reimbursed. To offer some immediate assistance, Conservative Leader Pierre Poilievre has already reached out to Minister Francois-Philippe Champagne requesting fairer taxation to allow workers faster access to their funds.

The cost of inaction and delays is hitting families hard.

It is encouraging that Mark Carney has admitted that Conservative concerns were correct all along by cancelling the EV mandate. Now, the focus should shift to supporting our workers, communities, and the long-term success of the auto industry in Canada.