Industry and Technology

The House of Commons Industry and Technology Committee met to study the state of the Canadian automotive sector, hearing from Huw Williams (National Spokesperson, Canadian Automobile Dealers Association), Brian Kingston (President & CEO, Canadian Vehicle Manufacturers' Association), David Adams (President & CEO, Global Automakers of Canada), and Charles Bernard (Chief Economist, Canadian Automobile Dealers Association).

Huw Williams described the dealer network as a major employer and contributor to Canada's GDP, and argued that the current trade uncertainty is creating an affordability crisis for consumers, with average monthly payments far exceeding expectations. He called for the elimination of the federal electric vehicle (EV) mandate, the removal of the luxury tax, and harmonization of regulations with free trade partners, and noted that dealers have been reimbursed for a federal EV subsidy program that had run out of funds.

Brian Kingston stated that U.S. tariffs are the primary threat to the industry, making it more cost-effective to build vehicles outside North America, and that the top priority is removing those tariffs and renewing CUSMA. He urged the government to eliminate the EV mandate, calling it a punitive regulation that will cost the industry billions and is driving investment away, and argued that Canada must become ultracompetitive to counter U.S. protectionism.

David Adams emphasized the need for a comprehensive, long-term strategy for the automotive sector, including developing critical minerals and leveraging strengths in connectivity and cybersecurity. He proposed a royal commission similar to the 1961 Bladen Commission to create a new framework for the industry, and stressed that Canada must expand trade horizons beyond the U.S. while also addressing regulatory duplication and slow mine approvals.

Charles Bernard noted that while lower interest rates have helped dealer operations, consumers still face high vehicle prices due to trade tensions and domestic policies. He agreed that tariffs act as a tax on consumers and that additional tariffs would worsen affordability.

During questioning, Kingston confirmed that Stellantis has executed most of its commitments in Canada and that the Brampton plant is not closed, but that trade certainty is needed for future investment. Adams and Kingston disagreed with the notion that Canada has lost credibility as an investment partner, instead blaming U.S. tariffs for instability. Williams argued that the EV mandate effectively subsidizes Tesla at the expense of Canadian dealers and consumers, a point Kingston reinforced by noting that EV sales have declined for seven months and that charging infrastructure is far behind what is needed to meet mandated targets. The witnesses broadly agreed that a trade deal with the U.S. is critical for the sector's survival, and that the federal government should act quickly to improve competitiveness through regulatory and tax reforms.