Canadian PM Mark Carney is reportedly considering scrapping the EV mandate in favor of revised fuel economy standards.
New Fuel Economy Standards
Ottawa is considering scrapping its current EV mandate, which outlines 60% of all new car sales should be electric by 2030, in favor of revised standards targeting fuel efficiency and credits, CBC reported on Wednesday, citing anonymous sources familiar with the matter. Carney is expected to make an announcement about the new standards on Thursday, according to the report.
The report also suggests that automotive industry stakeholders were consulted about ways to improve Canada's tailpipe emission rules, which dictate vehicle emissions.
While the new standards could still focus heavily on EVs, automakers will also earn credits for making EVs and can transfer previously earned credits into the new system, the report says.
EV Rebates To Return?
EV rebates could be making a comeback in Canada after the country's iZEV program was scrapped. The program offered rebates up to CA$5,000 (approximately $3,650) on a CA$50,000 (approximately $36,500) vehicle. Charging stations could also see more investment.
The return of the rebates could stand to benefit automakers like General Motors Co. (NYSE:GM), as well as Ford Motor Co. (NYSE:F), both of which offer EVs under $CA50,000 in the market. The revised standards could also push manufacturers towards Hybrid vehicles. The Canadian auto industry has been heavily impacted by the tariffs imposed by the White House.
Trump Decries EV Mandate, Canada Signs China Deal
The news comes as President Donald Trump, who recently rolled back Corporate Average Fuel Economy (CAFE) standards in the U.S., had criticized the previous Joe Biden administration's "ridiculous" fuel economy standards, as well as the EV mandate during Biden's time in the White House.
Meanwhile, Trump has also criticized Canada's agreement with China, which would see Canada allow up to 49,000 Chinese-made EVs to be imported into the country at a reduced tariff rate.
Trump called the deal one of the worst deals in history and warned that Canada was destroying itself by allowing Chinese-made EVs into the country. He also threatened Canada with 100% tariffs.
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