0:00
/
0:00
Sept. 26 2025 | The week’s top stories and CVMA CEO Brian Kingston on ZEV sales mandates, EV incentives, tariffs
Sept. 26 2025 | The week’s top stories and CVMA CEO Brian Kingston on ZEV sales mandates, EV incentives, tariffs
0:00
0:00
0:00
0:00
About this episode
Brian Kingston, CEO of the Canadian Vehicle Manufacturers Association, discusses the recent pause on Canada's zero-emission vehicle sales mandate and its implications for the automotive industry. He highlights the challenges posed by EV sales targets, the need for incentives, and the impact of tariffs on manufacturing costs. Kingston emphasizes the importance of establishing a stable trade relationship with the U.S. and the potential consequences of removing tariffs on Chinese-made EVs. The conversation also touches on the future of electrification in Canada and the need for improved charging infrastructure.
Topics:
zero-emission vehicle sales mandate
EV incentives
tariffs
trade agreements
electrification future
charging infrastructure
Chinese EV tariffs
automotive industry challenges
Cars:
BrightDrop Zevo
U.S. tariff collection spikes; Vip Palladino dies; 13 Porches damaged. Plus, Canadian Vehicle Manufacturers’ Association CEO Brain Kingston talks about the federal ZEV sales mandate, the potential return of the iZEV program, tariffs, and more.
Filter:
|
Technical
Too Afraid to Ask
Car
Zevo Bright Drop
"electric vans in Ingersoll Ontario for a bright drop of GM a Chevy brand there"
Select text to request an explanation
Relationships are at the heart of everything we do,
and we pride ourselves on providing you
with the award-winning satisfaction
you've come to expect from us.
Thank you for rating TD Auto Finance number one
in dealer satisfaction among non-captive,
non-prime lenders with retail credit
for the eighth year in a row.
Contact us today at 1-855-TD-Auto-1
to learn more about our award-winning satisfaction.
For JD Power 2025 award information,
visit jdpower.com slash awards.
Hi everyone, and welcome to the September 26th,
2025 episode of the Automotive News Canada podcast.
I'm your host, Greg Lason,
the digital and mobile editor at Automotive News Canada,
coming to you from just outside Windsor, Ontario,
the automotive capital of Canada.
Today on the show,
I speak with Canadian Vehicle Manufacturers Association
CEO, Brian Kingston.
He represents the interests of the Detroit three in Canada
and he's here to talk electric vehicle sales mandates,
EV incentives, trade and tariffs and more.
But first, a look at some of the top Canadian
automotive stories of the week.
The United States in July collected
about 380 million US dollars in auto tariffs.
That's a steep increase from the previous three months.
US customs had been allowing automakers
to claim exemptions for most vehicles
and parts under the United States,
Mexico, Canada agreement.
Anderson Economic Group says that practice
likely ended in July, says Anderson CEO Patrick Anderson.
We can expect that these costs will become embedded
into the prices consumers are paying
in the very near future.
In retail news, Canada's dealership community
lost another mogul this week.
Vincenzo Vip Palladino died September 23rd
at the age of 95.
He was a fixture of the Ontario auto retail industry
for more than 60 years.
Palladino in 1960 opened the first of three
used vehicle dealerships in Sudbury
that would become known collectively as Vips Car Land.
Today, the group has seven franchise stores
in three Ontario cities.
And finally, a Vancouver Porsche dealership
has filed suit after 13 vehicles were damaged
by a flying tent.
Porsche of Vancouver and its owner
Delari Group of Companies, a legend BC Supreme Court
that the vehicles were damaged when a tent
and its concrete anchor blocks were swept up by the wind
and landed on the vehicles.
The suit alleges the tent was being used
by a nearby film crew.
The plaintiffs claim Kelly's film services,
bright light pictures and lighthouse pictures
were negligent in securing the tent
and failing to check the weather forecast.
None of the claims has been proven in court.
And that's a look at some of the top Canadian
automotive stories of the week
coming up by Speak with Canadian Vehicle Manufacturers
Association CEO Brian Kingston.
Flexible, full spectrum and focused on the future
of this great industry
with over one million customers served
in relationships with over 6,100 dealers nationwide.
We pride ourselves on our competitive programs,
digital solutions and award-winning satisfaction.
We're committed to making it easy to finance a vehicle
and grow your business anywhere, anytime.
Thank you for rating TD Auto Finance number one
in dealer satisfaction among non-captive,
non-prime lenders with retail credit, eight years in a row.
With your continued support,
we were also recognized as number one
in dealer satisfaction among non-captive,
prime lenders with retail credit
in the JD Power 2025 Canada Dealer Financing Satisfaction
Study.
Contact us today at 1-855-TD-AUTO-1
to find out how we can support you
every step of the vehicle buying journey.
For JD Power 2025 award information,
visit jdpower.com slash awards.
Welcome back to the Automotive News Canada Podcast.
I'm your host, Greg Lason,
and I'm now joined by Canadian Vehicle
Manufacturers Association CEO, Brian Kingston.
Brian, thanks for joining me on the podcast this week.
Hey, thanks for having me on. I appreciate it.
Yeah, it's great to have you.
There is a ton to talk about
in the Canadian automotive industry.
You know, let's just start with electric vehicles.
The federal government has paused
its zero emission vehicle sales mandate,
and it's undertaking a 60-day review of that legislation.
What are your thoughts on this early?
Well, first of all, this was the right move.
We've been asking for the government to repeal the mandate
because of the damage it's doing to the automotive industry.
They have recognized that this is not working.
The pause is encouraging, but it's not enough.
This mandate has to go.
There is no other path forward.
We just saw the sales data for July
that is six months in a row of declines of EV sales,
sitting at 7.7 percent,
getting to 20 percent in 2026 and 60 percent in 2030
is not going to happen.
The demand is not there,
and as a result, manufacturers are having to restrict
gas-powered vehicle sales and purchase credits
from companies like Tesla.
It makes no sense. It has to go,
so it's a good first step,
but there's a lot more work to do here.
You mentioned damage.
Can you explain that in layman's terms?
How is this hurting the automotive industry
if there is an electric vehicle sales mandate in Canada?
The way it works is that companies have to
achieve this arbitrary sales ratio
that the government has established.
What will happen is,
if sales don't reach the level
that has been established
for a particular model of years,
20 percent in 2026 and then on to 60 in 2030,
they have to comply
through either restricting gas sales in Canada.
That means that if a dealer wants a certain amount
of gas-powered vehicles
because that's what their local market demands,
they can't receive them
because the company has to meet that sales ratio.
The other compliance avenue is to buy credits
from an automaker that has surplus credits.
The main one, of course, is Tesla.
We're estimating that in excess of $3 billion
will be spent on credits from Tesla
to comply with this regulation.
Completely illogical,
we have an automotive manufacturing industry
here in Canada employing Canadians
and this policy is requiring these companies
to spend money on a company
that has very little footprint
in the Canadian economy.
That's what the mandate does.
It's very damaging.
If the objective is reducing emissions,
we have existing regulations in place to do that.
Let's focus on the barriers to adoption.
Let's not mandate the technology.
We know what you and the automakers
that you represent want to see happen.
What do you think actually happens?
Do we still see a mandate of some sort
with lower percentages
and longer-term goals
rather than 100% by 2035?
Do we see 80% by 2050?
Do you have a sense of where this is going?
One way or another this mandate will be repealed.
If it doesn't happen in the next 60 days,
it will happen at a later date.
It's a policy that doesn't work
and it is extremely duplicative.
We have existing regulations.
I don't see a world in which this remains
in place over the long term.
The question is the timeline.
I think the government recognizes
the industry is under a great deal of pressure.
We have US tariffs.
We have the whole situation with China.
You cannot put self-inflicted damage
into this industry at this time.
I think we'll get to the right place.
Hopefully, it's at the end of the 60-day period.
If not, I will be repealed at some point.
There's another piece to the electric vehicle market
in Canada when it comes to the government.
That is the incentives
for zero-emissions vehicle rebate program
that offered up to $5,000
on the purchase of qualifying electric vehicles.
What's happening to that program?
It's been paused since the beginning of the year.
The federal government has said
it will come back in some way, shape, or form.
What is your sense there?
Does this work hand-in-hand with the sales mandate
or is this something separate?
What do you expect to see from that program moving forward?
It's still uncertain.
Part of the reason we've seen this disruption
in the EV market is because
we had the provincial governments,
BC, and Quebec withdraw their incentives.
Then, of course, the federal government
got rid of the ISEP program
virtually overnight.
Then, to make matters worse,
we had ministers continuing to say
that the program is going to come back.
If you're a Canadian
considering buying an EV
and you're hearing those messages,
you're seeing those articles and incentives
going to come back, but you don't know when,
what happens is those buyers sit on their hands.
They wait for a federal incentive.
We expected one
to potentially come back this year
just based on what the government said
during the election campaign.
We also hear the Prime Minister talking
about an austerity budget.
Record deficits being run
in Ottawa, major spending
commitments on defense.
Our estimates are that an ISEP program
that would put enough
stimulus into the market
to get to the mandated government targets
would cost at least
$900 million in one
fiscal year.
I'm not convinced they're going to bring it back
because I don't know if they have
the capacity to do so,
so we're going to have to work with what we have,
the existing market demand,
and we're really insisting with government
that let's focus and work together on charging infrastructure.
We know that's an ongoing challenge.
Let's get that right.
We'll get more Canadians and EVs.
Okay, so there's no sales mandate.
There might not be incentives.
What is the future for electrification?
Does one exist?
I know I'm putting you on the spot,
but it is the question
outside in that they only exist
because there are incentives
and they're only sold because they're forced to sell them.
Is electrification
the future for automotive?
The future is not
in question.
Electrification is happening.
The only question mark is on what timeline.
Early
forecasts about how quickly
this transition would take place
were very, very optimistic,
and now we're seeing that it's just not
occurring at the pace that was anticipated.
The industry has put
massive investments into this technology,
and I can tell you,
someone who's driving an EV for the past two years,
it is a fantastic technology.
When people make the move,
they make the switch,
they don't go back.
So this is the future,
but we've got to get the preconditions right,
and the main component there
is making sure that people can charge their vehicle
conveniently.
I can tell you that from experience.
If we get that right,
you will see more and more people in EVs.
I think the one other factor here
that's really important to note is that
the government set this target of 100%
EV sales.
That doesn't make sense in Canada.
There are certain use cases
where this technology simply
cannot be applied.
Maybe that will change in time as battery technology
advances, but if you live
in a remote community that's
electricity grid is off a diesel
generator, if you do a lot of towing
in a rural community, you name the example,
maybe an EV isn't going to work for you
right away. So I think we also have to realize
that, but we're going to get to very high levels
of electrification. The question is
how quickly?
It's safe to say that
investments in electrification in Canada,
and you represent the Detroit
3, and so obviously I'm talking about
what's happening in Windsor, for example,
where there is a battery plant
that is fully constructed and
making batteries to some extent
and an assembly plant there that
does make electric vehicles to some extent.
Those are safe,
would you say? They're not
going to shut those down or
turn them or convert them into
something else. It's just going to take longer
before we see them at capacity.
Is that the best assessment? Exactly.
It's just going to take longer.
All you have to do is look around
the world at what's happening in other markets.
This is the future electrification
is happening. There are some unique conditions
in North America that I think make it
challenging to move as quickly to full
electric, namely driving distances
and weather conditions.
But we're going to get there.
That is absolutely going to happen.
In Canada, as you and I have discussed
on a number of occasions, Canada is
perfectly placed as the U.S.
is engaged in this effort
to decouple its economy
from China, from the Chinese
EV supply chain, which
China has significant control of
the global battery supply chain.
Canada is the only jurisdiction
in the whole western hemisphere that has
all of these minerals. So the opportunity
remains significant. Again, the question
is how quickly can we move
and actually make that transition happen.
You talked about North America. You talked
about the global economy, the global
marketplace. We have to talk
about the trade front.
Canada, the United States and Mexico,
all started or said they plan to start
public consultations on the renegotiation
of the United States-Mexico-Canada
agreement or USMCA.
In the layman's terms, what does that
mean for the deal right now
and for auto right now? I know
it's consultations, but kind
of explain to me what this
first step means.
Well, this agreement is all about
one thing and that is
certainty. We need
certainty in the automotive industry and
the broader Canadian economy because we
are so highly integrated
with the United States.
There is no other option. Well, I
appreciate efforts to diversify to other
markets. If we do not have
a stable certain relationship
with the US, the Canadian economy is
in big trouble. So as we start
into this review of the agreement
the objective needs to be
to address any issues that any
of the parties have and to reaffirm
that we're going to keep
Kuzma agreement in place.
That gives companies the certainty
to continue with investments
in Canada, the US and Mexico because
we know the rules of the game. The challenge
we're facing right now is tariff
policy emanating out of the United States
is changing rapidly and sometimes
almost daily. Really hard
for a business like automotive that has
a long-term planning horizon.
So that's what the goal needs to be here. Let's
get through this, address these issues
and continue to work together in
the North American integrated economy.
So in the short term though
there are still US and Canadian
tariffs on autos, it's on critical
metals such as steel,
aluminum, things that are needed in the auto
industry. What happens in the short
term as these consultations start
and these tariffs remain in place
where do we go from here
quarter by quarter? What do you see playing
out until there is a new USMCA?
Well, first of all the costs
are mounting. So the longer we do not
get to some sort of agreement
understanding with the Americans on the
auto tariffs and steel and aluminum
you're going to see the costs mounting
for auto manufacturers. I mean through the
first two quarters of this year
auto companies have posted
12 billion US dollars in
tariff hits. I mean this is
unsustainable. It does not
make for a competitive industry.
So we have to get to some sort
of understanding with the US
ideally before
this whole review process of the
Kusma is underway. That would be the objective
can we secure some sort of agreement
we've heard the Prime Minister talk about
these smaller agreements negotiated with
the US. That should be the objective
let's get these tariffs removed and then
we can focus on some of the more
systematic elements of the trade
agreement that we have in place. But that should be
the objective if not the costs
incurred are just going to continue
to mount and that ultimately means prices
are going up and we have a less competitive
industry. This next
question could have fell on EVs it could
have fell in tariffs it's geopolitical
it's divided the country
explain to
listeners why the
auto industry believes that
removing tariffs on Chinese
made EVs and it's a hundred
percent tariff in fact I think it's a hundred
six point five percent when everything is
calculated. Why removing
that tariff is a bad
idea and what it could potentially
do to the North American auto industry.
Well there's two reasons
first is
China is not playing fair
we can compete with any
other manufacturer any other jurisdiction
if the playing field
is level. But if you look
at what China has done through their
industrial policy state directed
investments and subsidies into their
automotive industry have exceeded
two hundred thirty billion US dollars
from two thousand nine to twenty twenty
three that's probably a low ball
the estimates are likely
even higher when you look at the support
that has gone into the sector and now
what we're seeing is massive over
capacity in the Chinese market
and then these vehicles are dumped into
other markets around the world they flood
the market they take market share and
ultimately displace the domestic industry
so just to give you an example of what
happened in Mexico this year
one of every three new cars sold
in Mexico will be built in China
that's up for just four percent market
share in twenty twenty if you don't
get on top of this early
and keep those vehicles out they will
undermine your domestic industry
and of course China has
very weak labor standards
very weak environment
regulations and as a result
they can produce these vehicles at price
points that are completely below
anything you would see in North America
so that's reason one number two
we're trying to get a deal done with the Americans
the Americans are pivoting away
from China if we suddenly said
you know what we're going to drop the tariff
we're going to work with China have a closer
relationship I can guarantee
you what the response will be from the United States
and it will not be good so for those
two reasons we have to maintain
this policy and we have to
make sure that these vehicles are kept out of the market
so let me play devil's advocate
here and say but we don't make EVs
in Ontario so what's the big deal
and in a sense we don't we make
electrified muscle cars if you will
in Windsor we make commercial
electric vans in Ingersoll
Ontario for a bright drop of GM
a Chevy brand there
but nowhere else really makes
electric vehicles so the
the folks saying
drop the tariffs are saying there is no
EV industry in Ontario what do you say to that
couple things first of all we're creating
an EV industry and if you look at
what we've invested over the past five years
we're up 46 billion
dollars in investment
in Canada largely
in the EV supply chain
and EV manufacturing but it's early days
so we have to give the industry
time to stand up there's no doubt that the
Chinese are ahead because they've been working
on this since 2015
as part of their made in China
industrial policy so we cannot
allow them to come in well the industry is still
very much in its infancy
that's the main reason but again
the US reaction to this
would be extremely concerning
and it would make it very difficult
for us to continue forward
on securing a deal look at what Mexico just
announced they put in place a 50%
tariff on all Chinese
manufactured vehicles because they know
that the North American relationship
is most important last
topic the US
is moving closer to accepting European
safety regulations and safety standards
on European built cars that's
been in discussion over the last month
or so there's been a push to do the same
in Canada where we at
in terms of that accepting
cars that are built in Europe
as is without
sort of needing to hit Canadian
standards it would open up the market
to more choice to more vehicles but are we
close to getting to that and should
Canada harmonize with the United
States when it comes to that matter
yeah so a couple things first of all we've always harmonized
with the US because that's just the basis
of the industry and over 90%
of our production goes into the US
so it made sense and continues to make sense
to have harmonized regs with
the United States now the
US has secured agreements with Japan
Korea and the EU
where they've said that they intend
to recognize each other's
vehicle safety standards
I think we have to watch that play out
will there be a process for that
to happen our negotiations
underway our senses right now
there isn't a great deal of activity
there's an intention to do that
so I think we have to watch what the US does
and work with our American partners
as they approach different
regulatory recognition
agreements with other jurisdictions
but at this stage I'm not seeing a huge amount
of activity on the US side so I think
we have to keep an eye on that and make sure
that we're working together in that approach
Brian always great to have you on the show
I appreciate it thanks for having me
I'd like to thank Brian for his time
if you'd like to be a guest have a suggestion
or simply want to comment
email me at glasenatautonews.com
and remember you can listen to all our
previous podcasts on Spotify, iTunes,
Google Play or on our website
automotivenews.ca
just scroll to the podcast hub
in the middle of our homepage
and don't forget you can follow
Automotive News Canada on X
where we're at
Auto News Canada
and you can find me there too under
at glasen
Finally look for us on LinkedIn
just search Automotive News Canada
that does it for this episode of the
Automotive News Canada podcast
we hope you'll join us next time
so long everybody
Request an explanation for:
1 cars
1 cars featured
Request an Explanation
Heard something you'd like explained? We'll add it to this episode.
Sign in to request explanations for terms you heard.
Want to learn more?
Browse our glossary for plain-English explanations of automotive terms, jargon, and concepts.
Help improve this episode
See something that's not quite right? Our annotations are AI-generated and can sometimes miss the mark. Click the flag icon on any annotation to suggest a correction.
Report incorrect info
Suggest better explanations
Flag missing cars
More from Automotive News Canada Podcast
June 5, 2026 | The week’s top stories and Hyundai Canada’s Steve Flamand on sales, EVs, more
Jun 5, 2026
May 29, 2026 | The week’s top stories and Lexus Canada’s Martin Gilbert talks luxury sales
May 29, 2026
May 22, 2026 | The week’s top stories and the AMPA’s Flavio Volpe on the Gordie Howe bridge
May 22, 2026
May 15, 2026 | The week’s top stories and Mazda’s Jennifer Morrison on vehicle safety
May 15, 2026