OTTAWA — The leaders of five major automakers have urgently requested Prime Minister Mark Carney to repeal the federal mandate requiring zero-emission vehicle sales. They warn that failure to do so could have serious repercussions for the automotive industry. This appeal comes less than two weeks after the new Liberal cabinet was sworn in.

Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers’ Association, expressed growing frustration over the lack of government response since the letter was sent on May 26. The association represents major companies including Ford, General Motors, and Stellantis.

The letter was signed by the CEOs of Ford Canada, General Motors Canada, Honda Canada, Stellantis Canada, and Toyota Canada. It states, "If the mandate is not urgently repealed, it will inflict serious damage on automakers, the dealership network, and the hundreds of thousands of Canadians employed in the sector." Kingston noted the significance of all five CEOs uniting on this issue, emphasizing the urgency of their concerns regarding the electric vehicle (EV) mandate.

As of now, there has been no response from the Prime Minister’s Office. In July, Carney met with several auto executives to discuss the ongoing trade tensions with the U.S., where tariffs have been imposed on the auto industry. During that meeting, the executives reiterated their call to revoke the EV mandate.

The automakers' letter outlines their commitments to electrification and highlights the "tens of billions" of dollars invested in Canada. They noted that Canadians currently have access to over 100 types of zero-emission vehicles, with Transport Canada reporting that availability meets or exceeds consumer demand.

Despite these efforts, electric vehicle sales have significantly declined. Statistics Canada reported that in March, EV sales accounted for only 6.5 percent of total vehicle sales. In the first quarter of this year, zero-emission vehicle sales represented 8.7 percent of new vehicle registrations, a 23 percent decrease from the previous year. The CEOs attributed this decline to the federal and provincial governments weakening or eliminating purchase incentive programs that previously supported demand.

The federal program was ended in January, while Quebec has since introduced a new rebate. Flavio Nienow, a spokesman for Transport Canada, acknowledged that the higher purchase price of electric vehicles remains a significant barrier to widespread adoption. Laura Scaffidi, a spokeswoman for Transport Minister Chrystia Freeland, indicated that the government is exploring options to reintroduce a rebate of up to $5,000, although no timeline has been provided.

In their letter, the CEOs expressed skepticism about the effectiveness of a new rebate in boosting EV sales, citing challenges such as natural consumer demand, insufficient infrastructure, and slow adoption rates among commercial and government sectors. They argued that these factors render the current sales targets unrealistic and unattainable.

The letter calls for the repeal of the mandate, stating there is "no longer a pathway" to achieve the initial target of 20 percent of new vehicle sales being zero-emission vehicles by 2026. The federal mandate, formalized in 2023, sets escalating sales targets for automakers, starting with 20 percent in 2026 and increasing to 100 percent by 2035.

The letter warns that the mandate could lead to reduced vehicle sales, job losses in the sector, and higher prices for consumers. It states, "This will undermine consumer affordability and choice at a time of rising costs, limited demand, and growing uncertainty about infrastructure readiness."

The automakers argue that existing greenhouse gas emissions regulations could effectively drive the transition to electric vehicles while providing more flexibility. Environment Minister Julie Dabrusin and other officials have been meeting with industry representatives to address these concerns. Dabrusin's office has indicated that they are exploring options for flexibility in the mandate.

Kingston, who met with Dabrusin last month, noted that the minister seems committed to the current policy. However, he mentioned that some officials at Environment Canada have been resistant to acknowledging the urgency of the situation. He stated, "We need a clear public signal that it will be repealed, or automakers are going to continue to have to make disastrous choices, which is restricting vehicle sales and buying credits from Tesla."