‘The EV plan was always a mirage’: The Roundtable on the uncertain future of Canada’s auto sector
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Episode Description
The Carney government’s recent announcement of a major automotive industry package has sparked debate about the future of car manufacturing in Canada and the viability of electric vehicle policies inherited from the previous administration. The multi-billion dollar initiative attempts to balance competing pressures while navigating an increasingly complex North American trade environment.
The new policy represents a partial retreat from aggressive electric vehicle mandates that required all new vehicles to be electric within a decade. However, the government remains committed to substantial emissions reductions from the transportation sector, maintaining targets that call for the vast majority of new vehicle sales to be electric by the mid-2030s. This balancing act reflects concerns that completely abandoning electric vehicle goals would expose significant gaps in Canada’s overall climate commitments.
A key driver behind the policy appears to be anticipated American trade measures that could fundamentally reshape continental automotive trade. Expected quota systems would likely link the number of vehicles imported into Canada with export privileges to the United States on a manufacturer-by-manufacturer basis. This structure would particularly impact Japanese automakers with significant Canadian operations, as they import relatively few vehicles from American plants while exporting substantial numbers southward.
The policy shift comes as the broader electric vehicle industry faces mounting challenges. Major automakers have recently acknowledged overestimating consumer demand for electric vehicles, with market forces proving resistant to government-engineered transitions. The disconnect between policy ambitions and market realities has created an industry landscape heavily dependent on subsidies, mandates, and regulatory interventions rather than organic consumer demand.
This summary was prepared by NewsBox AI. Please check against delivery.
Rudyard Griffiths and Sean Speer discuss the Carney government’s multi-billion dollar auto industry strategy, and its attempt to walk back unrealistic EV mandates while preserving Ottawa’s climate commitments. They critique how the policy will create a captive market that will lead to less consumer choice and higher prices.
In the second half, they discuss major developments this week in the world of artificial intelligence and what it means for different industries and workers, including the so-called “laptop class.”
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Comments (1)
While the criticism is appreciated, it’s a little bit dishonest to keep this particular economic discussion siloed. As though this is an aberrant dirigiste diversion in an otherwise market oriented approach to the economy. This is just another plank in a remarkably consistent policy platform. EV protectionism and paternalism looks right at home along side similar incoming measures for the steel industry, an opaque and politicized major projects office, a smoke and mirrors repeal of the carbon tax, state-built homes and an Energy MOU more concerned with cutting up and parceling out the pipeline “pie” than actually getting it baked.
It was dishonest when you said the Conservatives and Liberals were in agreement about the economy in April 2025. And it’s dishonest now to play this off as something of an isolated incident. We’re now a year into Carney-ism. It’s time for people to face up and admit, “This is it. Vibes based policy is all the guy stands for.”