Ottawa, Ontario--(Newsfile Corp. - April 22, 2025) - Today, on Parliament Hill, the Canadian Automobile Dealers Association (CADA) announced the Canadian "Automotive Competitive Framework". The Framework outlines the steps the next federal government will need to take for Canada and the auto industry to remain competitive in the future. The framework also serves as a guide for government to address the approaching consumers' affordability crisis.
"CADA's Automotive Competitiveness Framework outlines concrete regulatory actions we urge the next Canadian Federal Government to take in order to protect consumers, small business auto dealers and the economy," said Tim Reuss, CEO of CADA. CADA represents some 3,200 dealers in nearly every community in Canada and collectively employs 178,000 people across the country, more than any other sector in the new car supply chain.
"The Canadian automotive sector is in turmoil as a result of the US tariffs and, while we applaud the Canadian Government on its measured response to not make this situation worse, it is clear that we are fast approaching a consumer affordability crisis," added Reuss. Faced with this, CADA's "Automotive Competitiveness Framework" outlines five concrete actions that the next Federal Government can take on behalf of consumers and industry:
1) End Canada's Electric Vehicle Mandates - Canada has been very successful in increasing the number of Electric Vehicles on the road over the last years as consumer demand, charging infrastructure and purchase incentives were aligned. Most recently, however, the buildup of charging infrastructure has not kept pace and both Federal and Provincial purchase incentives have been curtailed and partially eliminated.
2) Expand Canada's Automotive Regulatory Framework - For far too long, Canada has been beholden to the US-defined environmental and safety standards for vehicles, at the exclusion of all others. This means that Canadians only get those vehicles and brands that Americans consider attractive and affordable because Canada's volume alone doesn't justify the costs involved in making the vehicles compliant to the North American standards.
CADA is proposing the Canadian Government accept the vehicle compliance certificates of Japan, Korea and the European Union. This measure would represent an expansion of Canada's trade horizons, that is supported by almost all manufacturers - including American ones - and would not be seen as a retaliation for any US activities.
3) Do Not Allow Big Banks to Compete with the Small Businesses they Finance - Canada's "Bank Act" is up for its regular review and the big banks are once again trying to muscle their way into being able to lease vehicles to consumers. This would mean that the same banks that provide floor plan financing for our dealer members and therefore have ALL relevant financial information from them and have a tremendous lever over them, would now be competing with them for the same customer. During the Financial Crisis of 2008, Canada's Banks panicked and pulled out of the retail vehicle finance market. CADA therefore urges the Canadian Government NOT to expand the business power of big banks into leasing.
4) Scrap the Inefficient Luxury Tax on Vehicles - Since its inception a few years ago, the vehicle luxury tax has been an unmitigated disaster and a clear example of an inefficient tax, even the Parliamentary Budget Office correctly predicted that it would never have its intended effect as consumers would adjust their behaviour and "buy-around" this tax. The administration of this tax through a completely new system and process, instead of through existing mechanisms such as HST/GST, is very costly to the Government, manufacturers and dealers and is so fraught with problems and inconsistencies, that CRA has been forced to issue countless clarifications. It is time for this inefficient tax to be eliminated.
5) Pay the Debt Owed to Car Dealers for the IZEV Incentives - In January 2025, Transport Canada announced on a Friday that the Federal EV incentive program "might" be running out of money in the coming weeks. It then allowed one US company - that has minimum investments in Canada, to submit claims for over 8000 vehicles totalling over 48 million dollars over that weekend and the program then shut down on Monday. Our dealers fronted some ten million dollars on behalf of the Canadian government to consumers at the time they bought an EV. This is unacceptable and the government must pay dealers what they are owed.
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About the Canadian Automobile Dealers Association
The Canadian Automobile Dealers Association (CADA) is the national association representing new car and truck dealers. Our 3,200 members are represented in nearly every community and collectively employ 178,000 people across the country.
For more information, please contact:
Malka Silverman Canadian Automobile Dealers Association (CADA) - cada.ca
malka@cada.ca cell: 604-366-2533
Huw Williams Canadian Automobile Dealers Association (CADA) - cada.ca
Huw@cada.ca cell: 613-797-9583
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249370
SOURCE: Canadian Auto Dealers Association
