Prime Minister Carney Unveils Strategy to Revolutionize Canada’s Auto Industry
The Canadian automotive industry is entering a transformative phase as Prime Minister Mark Carney unveils a comprehensive strategy to revolutionize the sector. This initiative aims to reshape Canada’s auto manufacturing landscape, focusing on electric vehicles (EVs) and sustainability.
Government Strategy Overview
With over 90% of Canadian-made vehicles and 60% of auto parts exported to the United States, Canada’s economy is heavily influenced by a single trading partner. The government is pivoting to diversify its trade relationships and strengthen domestic industries. This new approach emphasizes building a resilient and sustainable economy with a robust auto sector at its core.
Key Measures Announced
- Investment Acceleration: Introduction of a $2.3 billion EV Affordability Program to lower costs for consumers, providing incentives up to $5,000 for battery electric and fuel cell EVs.
- Emissions Standards: Stricter greenhouse gas emission standards aimed at achieving 75% EV sales by 2035 and 90% by 2040.
- Charging Infrastructure: $1.5 billion investment to enhance the national EV charging network, making charging accessible across Canada.
- Workforce Support: A new Work-Sharing grant program to prevent layoffs and retain employees in the auto sector, along with reskilling support for over 66,000 workers, funded by a $570 million investment.
Strategic Partnerships and Trade Agreements
To further bolster the automotive industry, Canada has deepened its global partnerships. A memorandum of understanding (MOU) with South Korea aims to enhance collaboration in future mobility. A new partnership with China is also poised to attract direct investment in EV manufacturing while allowing a fixed volume of EV imports.
Impact on Canadian Workers
Canada’s strategy emphasizes protecting workers as the industry evolves. By supporting training and reskilling, the government seeks to prepare the workforce for the advancements in automotive technology and production. With a commitment to high standards and innovation, the goal is to position Canada as a global leader in the automotive sector.
Quick Facts
- Over 500,000 Canadian workers are employed in the auto sector.
- The automotive industry contributes more than $16 billion annually to Canada’s GDP.
- In 2025, Canada produced over 1.2 million passenger vehicles.
- Current U.S. tariffs impact Canadian-made vehicles and parts, threatening 125,000 direct jobs.
- EV sales are projected to constitute nearly 40% of global car sales within five years.
Prime Minister Carney’s forward-thinking approach aims not only to strengthen the auto industry but also to pave the way for a sustainable and competitive future. By investing in clean technologies and encouraging domestic manufacturing, Canada is on track to build a dynamic automotive sector that meets both local and global demands.
