An employee works on the chassis of an electric truck at a factory in Quebec on March 15, 2023. Derrick Cakpo/AFP via Getty Images
Conservative Leader Pierre Poilievre is once again calling for Ottawa to overturn its electric vehicle (EV) mandate, echoing a letter five automobile CEOs sent to the prime minister in May that was recently released.
“Automakers have warned Mr. Carney of the job losses and rising costs from his ban on gas-powered vehicles. We must allow people the freedom to choose,” the Tory leader said on Aug. 7.
The letter, which was acquired via an Access to Information Request by the National Post, was sent by five automakers to Prime Minister Mark Carney shortly after he won the federal election. The letter was signed by the CEOs of Ford Canada, General Motors Canada, Honda Canada, Stellantis Canada, and Toyota Canada.
The May 26 letter warned that if Ottawa’s EV mandate was not overturned, it would inflict “serious damage” on automakers, vehicle dealers, and Canadians employed in the automotive sector. The letter says that despite Canadians having access to more than 100 types of zero-emission vehicles, sales have plummeted 23 percent since 2024.
Ottawa’s EV mandate, introduced in 2023 to reduce greenhouse gas emissions, states that at least 20 percent of new light-duty vehicles offered for sale in 2026 must be zero-emission, with the share rising each year until it reaches 100 percent in 2035. Automakers unable to meet the 2026 target can purchase compliance credits from competitors without a manufacturing footprint in Canada and limit sales of internal combustion vehicles.
The CEOs said this drop in sales was a result of the federal and provincial governments “weakening or eliminating” EV incentive programs that had been propping up demand. Ottawa ended its EV program in January, but has said it will come back in some form, while Quebec has ended its program and has since introduced a rebate.
The letter also said the mandate is forcing automakers to either limit traditional combustion engine and hybrid vehicle sales in Canada, or purchase credits from automakers like Tesla “that do not produce vehicles in Canada.” The CEOs warned that the EV mandate would ultimately result in lower vehicle sales, fewer auto sector jobs, and higher prices for vehicles.
The CEOs of the Canadian subsidiaries of Ford, Stellantis, and GM, as well as the Canadian Vehicle Manufacturers’ Association (CVMA), also met with Carney at his office on July 2. While the Prime Minister’s Office said the conversation was around U.S. tariffs on automobiles and auto parts, CVMA CEO Brian Kingston told reporters before the meeting that Ottawa’s EV mandate was “not sustainable.”
The Conservative Party has also opposed the EV mandate, arguing that Canada does not have the electrical infrastructure or charging stations for it to be viable. The Tories put forward a non-binding motion in the House of Commons on June 17 to overturn the federal EV mandate, but the motion failed thanks to the Liberals, New Democrats, and Bloc Québécois.
A group of 48 municipal leaders in Ontario also recently released a letter calling for Ottawa to get rid of the EV mandate, warning that it could do “irreversible damage” to the auto sector and dealerships.
The federal government says its zero-emission vehicle sales targets are needed to “decarbonize the transportation sector.”
“Canada is committed to decarbonizing the country’s transportation sector and becoming a global leader in zero-emission vehicles (ZEVs),” Transport Canada says in a statement.
“The Government of Canada is also investing to make zero-emission vehicles more affordable and charging stations more accessible, which will also help support meeting these ambitious ZEV sales targets.”