Automotive News Canada - March 2024 - 6

6
* MARCH 2024
Diverging EV paths
Does the U.S.
government's
potential softening
of EV adoption mean
Canada should slow
down? Regardless,
Ottawa has aligned with
California and other
states with their more
aggressive goals
By TODD HUMBER
T ORONTO CORRESPONDENT
WITH WORD THE U.S. GOVERN
-ment is planning to pump the
brakes on the transition to electric
vehicles, some hand wringing
has begun about Canada's targets
on zero-emission
vehicles (ZEVs).
" The targets
are too aggressive,
and the government
is not
showing any
willingness to
change the targets, "
said David
Adams, president
of Global
Automakers of
Canada, which
represents import
auto brands.
The U.S.
Adams: The
United States,
which has
significantly
more
investment
in charging
infrastructure
than Canada,
is considering
slowing the
transition to
EVs.
FILE PHOTO
Environmental
Protection
Agency (EPA) is
expected to back
off a requirement
that 60 per cent
of vehicle production
be EVs
by 2030, according to U.S. media
reports, with an announcement
expected in March.
" The automotive market
is a North American
market. It's not just a
Canadian market, " Adams
said. " Products that are
built in Canada, 85 per
cent of those go to the U.S.
Likewise, vehicles that are
built in the U.S. come into
Canada. "
But that harmony is
cracking, with Ottawa and
Washington differing on
the pace of change from
internal combustion to
ZEVs, he said.
In December, the
Canadian government
finalized legislation that
requires ZEVs to account
for an escalating percentage
of light-duty vehicle
sales every year, arriving
at 100 per cent in 2035.
That Canada has its
own rules layered
on top of U.S.
legislation provides
a policy to ensure
that regulations
aren't changed
or rolled back by
leaders Canadians
didn't vote for, said
Joanna Kyriazis,
director of public
affairs at Clean
Energy Canada.
ILLUSTRATION:
AUTOMOTIVE NEWS
CANADA/iSTOCK
rules were written to mirror those
in the United States. That changed
with the federal mandate, said
Joanna Kyriazis, director of public
affairs at Clean Energy Canada,
based Ottawa.
" I think they were more ambitious
than the industry was expecting, "
Kyriazis said.
She's not surprised to see the
pressure build on U.S. President
Joe Biden on multiple fronts,
including automakers and the
United Auto Workers (UAW) -
considering it's a presidential election
year.
" All of the stars are aligning for
weaker regulations in the U.S., "
Kyriazis said.
That Canada has its own rules
layered on top of the U.S. legislation
provides a policy to ensure
regulations aren't changed or
rolled back by leaders Canadians
didn't vote for, she said.
'ALREADY BIFURCATED'
Kyriazis said that having
Kyriazis:
Given that
this is a
presidential
election year,
it stands to
reason that
" the stars are
aligning for
weaker [EV]
regulations in
the U.S. "
PHOTO:
LINKEDIN
AMERICANS 'AREN'T QUITE READY'
At the same time, the United
States has made " significantly
more investment in charging infrastructure "
to support EV adoption,
Adams said.
" Now, they're sort of considering
maybe that's not enough, and
maybe Americans aren't quite
ready to adopt the technology at
the pace with which the government
had originally laid out. "
Historically, Canadian emissions
different sets of regulations
on different sides of the border
isn't a problem.
" The reality is that the
U.S. market is already
bifurcated. [There are]
clean-car states and nonclean-car
states, " she
said. " You'll also see them
referred to as Section 177
states. They're the states
that have decided to adopt
California's clean-car rules,
including California's ZEV
mandate. "
In total, 17 states representing
almost 40 per cent
of the U.S. car market have
embraced that California
model, she said.
" Canada is already forced to pick
a lane here, and we've chosen to
align with the 17 U.S. states that
have EV ambitions similar to our
own, " Kyriazis said.
Plus, she points to the significant
investment being made in the
industry in Canada; $37 billion in
EV and battery-related projects
over the past three years.
" We just dethroned China as
the top-ranking country in the
world for our EV and battery supply-chain
potential, according to
Bloomberg New Energy Finance, "
Kyriazis said. " I know there are
concerns about how fast we're
going, but our auto sector and supply
chains are ramping up fast, and
I'm positive we'll be able to meet
our EV goals. "
RULES MEAN STABILITY
Jeff Turner, director of mobility
at Montreal's Dunsky Energy
+ Climate Advisors, said the
Canadian rules are providing stability
for the industry, compared
with what he called a " volatile
landscape " in the
United States.
" That volatility
is really challenging
for a number
of the stakeholders
who are
looking to play
an important role
in this space, " he
said. For example,
they work closely
with utilities
across Canada
that are preparing
their power grids
for EV adoption.
" It's really helpPayne:
U.S.
and Canadian
automotive
rules " have
long been
harmonized. "
FILE PHOTO
ful for them to have targets that are
set in place so that they can plan
around, " Turner said. " If we then
layer in, on top of that, that utilities
in Canada also have to anticipate
changing winds south of the
border as well when they're making
investment decisions? It's going
to get pretty tricky for everybody
working on this file. "
Unifor, which represents
autoworkers in Canada, is urging
Ottawa to take a flexible approach
toward EV adoption.
" Canada's own tailpipe emissions
standards have long been
harmonized with these same U.S.
EPA standards, and that's precisely
to ensure regulatory consistency
across an integrated vehicle market, "
said Lana Payne, the union's
national president.
" The only way to ensure a successful
transition is for governments
to carefully balance their policy
ambition with regulatory flexibility
for the benefit of all stakeholders,
including autoworkers, " she
said. - ANC
TRENDING
STORIES
automotivenews.ca
ONGOING WEB COVERAGE
SPRING SELLING SEASON
Dealers are gearing up for the spring selling season - the first since the
COVID-19 pandemic with solid inventory levels and demand - and are
coming off a record February. It could be a banner spring for dealers.
AUTO THEFT
The federal government in February made two funding announcements
in the fight against auto theft, but the industry still wants more. It will take
some time to see if the millions of dollars pledged to help will make a dent.
DEAL GIVES FORD ACCESS TO TESLA CHARGERS
FORD MOTOR CO. ON FEB. 29 OPENED THE REGISTRATION
process for owners of its electric vehicles to reserve free adapters
allowing the use of more than 15,000 Tesla Superchargers across
the United States and Canada. Owners of 2021-24 Mustang Mach-E
crossovers and F-150 Lightning pickups can complete a short process
online to receive one free adapter per vehicle through June 30.
Customers who purchase a Ford EV during that window also would
have to reserve a free adapter, a spokesperson said. Ford and Tesla
announced their partnership in May 2023.
GR COROLLA CARBON-CAPTURE TEST BED
TOYOTA MOTOR CORP.'S GR COROLLA RACE CAR, EQUIPPED
with a hydrogen-burning engine, emits only trace amounts of carbon
dioxide, making it carbon neutral. And
a new filtering device removes the
greenhouse gas from the atmosphere
with every lap. " This type of technology
to capture carbon dioxide in the
atmosphere is advancing rapidly in the
infrastructure industry, " said Naoaki Ito,
project general manager of GR vehicle
PHOTO: TOYOTA
development. " But as far as we know, Toyota is the first company to
test this technology in a vehicle. "
ENGINEER SAYS CYBERTRUCKS ARE NOT RUSTING
CONTRARY TO WHAT SOME CUSTOMERS ARE SAYING ONLINE,
Tesla Cybertrucks are not rusting,
according to Wes Morrill, Cybertruck
lead engineer and director of reliability,
test and analysis. Morrill said on his X
account that the stainless-steel exterior
panels are drawing surface contamination
that's rusting. " Stainless steel is
reactive and free iron that sits on it will rust, " Morrill said. " It's surface
contamination only and can be cleaned off easily. "
PHOTO: TESLA
ELECTRIC EQUINOX PRICING ANNOUNCED
THE 2024 CHEVROLET EQUINOX EV WILL START AT $51,498,
including shipping but not government rebates. The base price is
$16,498 above the " about-a-$35,000
MSRP, " former GM Canada VicePresident
of Sales Sandor Piszar
pledged during an Automotive News
Canada Podcast in 2022. The Equinox
EV will come in 2LT front wheel drive,
starting at $51,498 (all prices include
shipping); 2RS FWD, starting at $53,298; 3LT FWD, starting at
$54,198; and 3RS FWD starting at $55,698. All are expected to
arrive in mid-2024.
PHOTO: CHEVROLET
EV CREDITS WON'T BE USED AS A CRUTCH
STELLANTIS CEO CARLOS TAVARES WILL NOT ALLOW THE
purchase of regulatory credits, said Tim Kuniskis, CEO of the Dodge
and Ram brands, in late February. The practice was a relic of the Fiat
Chrysler Automobiles era when the automaker was a regular buyer of
Tesla credits. " It's not even a topic of discussion, " Kuniskis said. " Not
having that mental safety blanket really forces you to self-regulate, it
forces you to make the tough calls, and we literally adjust our plans on
a monthly basis based on where we see the trajectory of compliance. "
- ANC
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Automotive News Canada - March 2024

Table of Contents for the Digital Edition of Automotive News Canada - March 2024

Automotive News Canada - March 2024 - Intro
Automotive News Canada - March 2024 - 1
Automotive News Canada - March 2024 - 2
Automotive News Canada - March 2024 - 3
Automotive News Canada - March 2024 - 4
Automotive News Canada - March 2024 - 5
Automotive News Canada - March 2024 - 6
Automotive News Canada - March 2024 - 7
Automotive News Canada - March 2024 - 8
Automotive News Canada - March 2024 - 9
Automotive News Canada - March 2024 - 10
Automotive News Canada - March 2024 - I1
Automotive News Canada - March 2024 - I2
Automotive News Canada - March 2024 - 11
Automotive News Canada - March 2024 - 12
Automotive News Canada - March 2024 - 13
Automotive News Canada - March 2024 - 14
Automotive News Canada - March 2024 - 15
Automotive News Canada - March 2024 - 16
Automotive News Canada - March 2024 - 17
Automotive News Canada - March 2024 - 18
Automotive News Canada - March 2024 - 19
Automotive News Canada - March 2024 - 20
Automotive News Canada - March 2024 - 21
Automotive News Canada - March 2024 - 22
Automotive News Canada - March 2024 - 23
Automotive News Canada - March 2024 - 24
Automotive News Canada - March 2024 - 25
Automotive News Canada - March 2024 - 26
Automotive News Canada - March 2024 - 27
Automotive News Canada - March 2024 - 28
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