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Automotive

It’s Time To Abandon Reckless EV Mandates

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From Canadians for Affordable Energy

Dan McTeague

Written By Dan McTeague

Already, billions of tax dollars have been handed out in subsidies to companies that have no accountability to the Canadian taxpayer. This experiment in societal re-engineering will disproportionately harm Canadian workers and families, especially those who live in rural communities.

And it will surely fail

Canada is not nearly ready for the wholesale adoption of electric vehicles (EVs).

That was the message of the letter I sent to every member of Parliament recently, urging them to drop the “Electric Vehicle Availability Standard” introduced by the Trudeau government late last year. That’s the policy that mandates that all new vehicles sold in Canada must be electric by 2035. There is no way, considering the economic, technological and infrastructural realities of our country — and our world — where this is possible.

Stubbornly attempting to achieve this goal would do serious damage to our economy, leaving Canadian taxpayers on the hook for generations to come. Already, billions of tax dollars have been handed out in subsidies to companies that have no accountability to the Canadian taxpayer. This experiment in societal re-engineering will disproportionately harm Canadian workers and families, especially those who live in rural communities.

And it will surely fail. In my letter I highlight a few of the central reasons why staying the course on EV mandates by 2035 is extremely reckless. Right off the bat, the technology is simply not there for electric vehicles to be a reliable source of transportation in Canada’s climate. The batteries cannot hold their charge in frigid temperatures. Forcing Canadians to rely on vehicles that can’t handle our winters is irresponsible and dangerous.

Electric vehicles’ cost is another issue. Right now, the EV market relies heavily on government subsidies. These subsidies can’t last forever. But without them EVs are prohibitively expensive. Even with them, the costs of maintaining an EV are high. Replacing a damaged battery, for example, can cost upwards of $20,000. Mandating that people buy vehicles they can’t afford to either purchase in the first place or maintain if they do buy them is political malpractice.

A fact long ignored by decision-makers in Ottawa is that our electrical grid isn’t ready for the excess demand that would come with widespread EV adoption. These mandates, paired with the government’s goal of fully decarbonizing the grid by 2035, put us on a collision course with the reality of unreliable power. A grid powered, not by reliable fossil fuels, but by spotty wind and solar energy would be further burdened with millions of cars relying exclusively on electricity.

Beyond the electricity itself, the EV mandates will require additional transmission and distribution capacity. But there are no signs any plan is in place to expand our transmission capacity to meet the 2035 target.

The sheer number of new charging stations required by wholesale adoption of EVs will strain our distribution networks. Natural Resources Canada projections show that Canada will need between 442,000 and 469,000 public charging ports by 2035. At the moment, we have roughly 28,000. And that doesn’t include the private charging stations people will need to install at home. Closing that gap in such a tight time frame is almost certainly impossible.

All of those considerations aside, at a fundamental level the government’s push for electric vehicles encroaches on the operation of the free market, all in the name of emissions reductions. The Canadian economy is founded on the market principle that the consumer drives the economy (no pun intended). Thousands of times over, it has been shown that if there is enough demand for a product, supply soon follows. In the case of EVs, however, the federal government is operating under the assumption that if you somehow create a supply, that will inspire a demand.

This hasn’t worked in any of the countries where it’s been attempted, which is why nations around the world have started to tap the brakes on EV mandates. Decision-makers in Ottawa need to follow suit and abandon these reckless and costly mandates. Let the market decide when EVs are ready for prime time. In other words, let Canadians decide.

Dan McTeague is President of Canadians for Affordable Energy

Automotive

Trump announces 25% tariff on foreign automobiles as reciprocal tariffs loom

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From The Center Square

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President Donald Trump announced a permanent 25% tariff on automobiles made in other countries that will go into effect on April 2.

Trump made the announcement Wednesday in the Oval Office. He also hinted that the reciprocal tariffs he plans to announce on April 2 could be more lenient, suggesting the tariffs would be less than fully reciprocal.

“What we’re going to be doing is a 25% tariff on all cars not made in the U.S.,” the president said.

Asked if any changes could avert the auto tariffs, Trump said they would be “permanent.”

“This will continue to spur growth like you haven’t seen before,” Trump said.

Trump said the tariffs will be good news for auto companies that already build products in the U.S. He also said carmakers that don’t build in the U.S. are looking to do so.

“We’re signing an executive order today that’s going to lead to tremendous growth in the automobile industry,” Trump said.

The White House said it expects the auto tariffs on cars and light-duty trucks will generate up to $100 billion in federal revenue. Trump said eventually he hopes to bring in $600 billion to $1 trillion in tariff revenue in the next year or two.

Trump also said the tariffs would lead to a manufacturing boom in the U.S., with auto companies building new plants, expanding existing plants and adding jobs.

Trump also urged House Speaker Mike Johnson to approve a measure that would allow car buyers to deduct the interest on loans for cars that are made in America. Trump said that such a plan would make cars nearly free for buyers.

“So when you get a loan to buy a car … I think it’s going to pay for itself, I don’t think there’s any cost,” he said.

Trump also said the reciprocal tariffs he plans to unveil on April 2 would be fair.

“We’re going to be very nice actually,” he said. “It’ll be, in many cases, less than the tariff they’ve been charging us for decades.”

European Commission President Ursula von der Leyen said tariffs would hurt businesses and consumers.

“I deeply regret the U.S. decision to impose tariffs on European automotive exports,” she said. “Tariffs are taxes – bad for businesses, worse for consumers, in the U.S. and the EU.”

Business groups, including the U.S. Chamber of Commerce and American Farm Bureau Federation, have urged Trump to back off tariff threats.

Trump has promised that his tariffs would shift the tax burden away from Americans and onto foreign countries, but tariffs are generally paid by the people who import the products. Those importers then have a choice: absorb the loss or pass it on to consumers through higher prices. He also promised tariffs would make America “rich as hell.” Trump has also used tariffs as a negotiating tactic to tighten border security.

Tariffs are taxes charged on imported products. The company importing the products pays the tariffs and can either try to absorb the loss or pass the additional costs on to consumers.

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Automotive

Nissan, Honda scrap $60B merger talks amid growing tensions

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MxM News

Quick Hit:

Nissan is reportedly abandoning merger talks with Honda, scrapping a $60 billion deal that would have created the world’s third-largest automaker. The collapse raises questions about Nissan’s turnaround strategy as it faces challenges from electric vehicle competitors and potential U.S. tariffs.

Key Details:

  • Nissan shares dropped over 4% following the news, while Honda’s stock surged more than 8%, signaling investor relief.
  • Honda reportedly proposed making Nissan a subsidiary, a move Nissan rejected as it was initially framed as a merger of equals.
  • Nissan is struggling with financial challenges and the transition to EVs, still reeling from the 2018 scandal involving former chairman Carlos Ghosn.

Diving Deeper:

Merger talks between Nissan and Honda have collapsed, according to sources, after months of negotiations to form an auto giant capable of competing with Chinese EV makers like BYD. The proposed deal, valued at over $60 billion, would have created the world’s third-largest automaker. However, differences in strategy and control ultimately derailed the discussions.

Reports indicate that Honda, Japan’s second-largest automaker, wanted Nissan to become a subsidiary rather than an equal merger partner. Nissan balked at the idea, leading to the collapse of negotiations. Honda’s market valuation of approximately $51.9 billion dwarfs Nissan’s, which may have fueled concerns about control. The failure of talks sent Nissan’s stock tumbling more than 4% in Tokyo, while Honda’s shares rose over 8%, reflecting investor confidence in Honda’s independent strategy.

Nissan, already in the midst of a turnaround plan involving 9,000 job cuts and a 20% reduction in global capacity, now faces mounting pressure to restructure on its own. Analysts warn that the failed merger raises uncertainty about Nissan’s ability to compete in an industry rapidly shifting toward EVs. “Investors may get concerned about Nissan’s future [and] turnaround,” Morningstar analyst Vincent Sun said.

Complicating matters further, Nissan faces heightened risks from U.S. tariffs under President Donald Trump’s trade policies. Potential tariffs on vehicles manufactured in Mexico could hit Nissan harder than competitors like Honda and Toyota. The stalled deal also impacts Nissan’s existing alliance with Renault, which had expressed openness to the merger. Renault holds a 36% stake in Nissan, including 18.7% through a French trust.

While both Nissan and Honda have stated they will finalize a direction by mid-February, the collapse of this deal signals deep divisions in Japan’s auto industry. With Nissan’s financial struggles and the growing dominance of Chinese EV makers, the company must now navigate an increasingly challenging market without external support.

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