VAUGHAN, ON — Prime Minister Mark Carney today announced a sweeping new strategy for Canada’s automotive sector, aimed at protecting domestic jobs
VAUGHAN, ON — Prime Minister Mark Carney today announced a sweeping new strategy for Canada’s automotive sector, aimed at protecting domestic jobs while aggressively scaling up the country’s electric vehicle (EV) infrastructure.
Speaking from an auto-parts plant in Woodbridge, the Prime Minister framed the plan as a “sovereign path” for Canada. The strategy moves away from strict sales mandates in favor of rigorous greenhouse gas emissions standards, while injecting billions into manufacturing and consumer affordability.
“We’re building a stronger auto industry that has more affordable EVs and good jobs here at home,” Carney stated. “This plan is about protecting Canadian jobs while driving the future of mobility.”
Key Pillars of the National Automotive Strategy
The announcement outlines a five-point plan to modernize the industry and support the workforce through the transition:
| Feature | Details |
| Manufacturing Investment | $3 Billion from the Strategic Response Fund to help plants adapt and diversify. |
| Worker Support | Reskilling and employment assistance for up to 66,000 workers. |
| EV Affordability | New rebates of up to $5,000 for battery-electric and $2,500 for plug-in hybrids. |
| Charging Network | $1.5 Billion investment through the Canada Infrastructure Bank to expand national charging. |
| Emissions Standards | Replacing the “EV mandate” with tighter GHG standards for 2027–2032 models. |
Supporting the Workforce
A central component of the announcement is the protection of the 500,000 Canadians currently employed in the sector. With $570 million dedicated specifically to worker transition, the government is launching a new “Work-Sharing” grant to prevent layoffs and a “Workforce Alliance” to bridge the gap between industry needs and labor training.
A New Approach to Emissions
In a significant policy shift, the government is repealing the previous “Electric Vehicle Availability Standard.” Instead, Carney’s administration will use a “grams-per-mile” model to double the stringency of greenhouse gas (GHG) emission standards. The goal is to achieve 75% EV sales by 2035 and 90% by 2040 by giving manufacturers the flexibility to use various technologies—including high-efficiency internal combustion engines and hybrids—to meet the targets.
Trade and Competitiveness
To combat external trade pressures, the plan maintains a 25% counter-tariff on auto imports from the United States to ensure a level playing field. Notably, the $50,000 price cap for EV rebates will be waived for Canadian-made vehicles, providing a direct competitive advantage to domestic manufacturers.
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