This Election, have your voice heard.
Canada’s auto dealers are small business leaders who contribute to their local communities and help drive Canada’s economy forward. This election, let’s make our voices heard and ensure that Canada’s retail auto sector is supported and that North America’s standards remain harmonized.
Our industry has two issues of interest for the Federal Election.
Continental Emission Rules for a Continental Economy
CADA and the vehicle manufacturer associations are united in our continued recommendation for a unified set of fuel economy rules across the North American continent
Today’s new vehicles are cleaner, less polluting, and more fuel efficient than they ever have been. This is a result of the twin forces of consumer demand (fuel efficiency is at or near the top of most consumers’ wish lists) and government regulation. The industry is moving in the direction of environmental sustainability already, and there is a great deal of excitement for the technology that will continue to improve fuel efficiency for traditional internal combustion engines, and for the continued proliferation of non-traditional propulsion technologies such as electric and hybrid vehicles.
No matter the direction of government of Canada regulation following the rollbacks by the Trump administration on emission standards, these investments will continue to take place and fuel economy gains will continue to be made by automotive manufacturers. There exists in Canada, North America, and around the world a powerful market force in favour of continued gains in fuel economy, and these gains will continue to be achieved.
CADA and the vehicle manufacturer associations are united in our continued recommendation for a unified set of fuel economy rules across the North American continent.
The industry is so integrated on a continental basis, with America being by far the largest component of the continental market, and Canada is not in a position to successfully strike out on its own in terms of fuel economy regulations for new vehicles. Should Canada pursue a different and stricter set of rules than the standard set by the United States, the result will be increased costs for dealers and consumers in Canada, and reduced product choice. Manufacturers will not build vehicles specific to the Canadian market because we are too small. We will be forced to bear higher costs and live with reduced product choice if we don’t align along the continental model for fuel economy regulation, and the environmental benefit will be minimal if non-existent. Given the highly integrated nature of our industry across North America, regulations that govern the way cars are manufactured must be equally integrated between the governments of Canada and the United States.
Consumer demand for fuel-efficient vehicles is high.
Government can implement continental fuel-economy regulations.
Together this can lead to cleaner vehicles.
ELECTION ISSUE: ZERO-EMISSION VEHICLES
Encouraging the Proliferation of Zero-Emission Vehicles (ZEVs)
Consumers demand for Zero Emission Vehicles (ZEVs) have increased significantly over the past few years. Recent data shows that Canada have reached the threshold of 100k electric vehicles (EVs) on the road. Auto makers are adjusting and restructuring their production to meet the ever increasing consumers demand for fuel efficient vehicles. However, there are still many barriers that limit demand for ZEVs in the Canadian marketplace including higher upfront cost, the dearth of charging infrastructure across the country and consumer awareness.
We are encouraged by the government new national rebate program for ZEVs (iZEV) and funding to develop a network of charging stations across the country. These investments will make ZEVs more affordable for Canadians and increase demand. The uptake in the program has been quite strong so far, with significant registrations from dealerships across the country.
According to the information provided by Transport Canada, close to 14k ZEVs were purchased in Canada since the implementation of the program in May. At this pace, consumers will burn through the $300 million allocated over 3 years for the incentive program. Evidence suggests a strong correlation between government incentive and demand of zero-emission vehicles. Upfront costs still represent a key impediment to adoption. As it was the case in Ontario, demand has stalled when the incentive program was canceled by the provincial government. The federal government needs to allocate additional funding to the program and develop a national public awareness campaign to ensure continued success of the iZEV program and accelerate adoption in Canada.
How each Federal Platform has responded to our Industry's needs
Canada’s auto dealers will be analyzing the various party platforms as they are released to ensure that our industry remains supported.
Check back here for updates!