Local mayors push for realistic EV sales targets to support automakers and protect jobs

Vehicles move along the Chevrolet Bolt EV and EUV assembly line. (AP Photo/Carlos Osorio, File)

The newly formed Simcoe County Auto Mayors Association is calling on the federal government to adopt more realistic electric vehicle (EV) sales targets and expand Canada’s Zero-Emission Vehicle (ZEV) mandate to include non-plug-in hybrid vehicles - a move it says would support Canadian auto manufacturers and protect local jobs.

The call comes after Prime Minister Mark Carney met with the automotive sector CEOs Wednesday morning to discuss U.S. tariffs and ways to protect Canadian supply chains from the trade war with the United States.

A recent slowdown in electric vehicle (EV) sales, along with the imposed U.S. tariffs, is having an impact locally. Communities in Simcoe County are feeling the pinch after Honda’s decision to delay construction of its $15 billion EV and battery plant in Alliston by at least two years.

• Automakers ‘cautiously optimistic’ on EV mandate changes after meeting with Carney
• Honda hits pause on plans for $15B EV expansion in Alliston, Ont.

The auto industry is warning the government that current EV sales targets are too ambitious and not realistic, asking for a more practical approach to growing the market.

To maximize their goals, local mayors met with auto sector leaders and sent a formal letter to the prime minister and honourable ministers to revise the ZEV sales goals. In the letter, they ask that non-plug-in hybrids to be included in the ZEV mandate and given full credit toward meeting the targets. Non-plug-in hybrids combine a gasoline engine with an electric motor and battery and do not require external charging.

“The Non‐Plug in Hybrids should earn a full compliance credit and should not be treated differently from the other eligible vehicles under the mandate," the letter states. “This will support Canadian auto manufacturers while providing Canadian consumers an ‘on‐ramp’ away from traditional gas‐powered vehicles and would serve as a critical bridge to the long‐term goal of full electrification for Non‐Plug in Hybrids as fully eligible vehicles towards achieving the targets."

Honda has been a major employer in Simcoe County for decades, employing about 4,200 people directly and supporting another 30,000 jobs across the chain. Its impact extends throughout Simcoe County supporting local parts suppliers, infrastructure projects, and workforce training.

“Allowing non-plug-in hybrids to be part of the ZEV mandate will help stabilize local economies, protect jobs, and strengthen Canada’s automotive industry during this difficult time,” the mayors wrote in the letter.

Most ZEV-qualified vehicles today are imported. The auto mayors association states that as the targets increase, Canadian-made vehicles risk being pushed out of the market. That means a missed opportunity to grow manufacturing here at home. “With the increasing targets, the mandate is expected to further displace Canadian made vehicles, which the local association says could miss key opportunities to bolster domestic manufacturing,” the letter continued.

Local mayors say they have heard from auto suppliers with ties to U.S. companies that production is already shifting from Canada to the U.S., resulting in job losses and fewer investments here at home.

Many Canadian auto plants already make non-plug-in hybrids or could do so with minimal changes, according to the association. If these vehicles aren’t included in the ZEV mandate, members of the Simcoe County Auto Mayors Association feel it could hurt the competitiveness of Canada’s auto industry at a time when it’s already facing challenges.

“By supporting non-plug-in hybrid production in Canada, the government can protect jobs, strengthen the economy, and help build a more resilient, self-sufficient auto sector,” the mayors stated in closing.

The Simcoe County Auto Mayors Association consists of municipal leaders including New Tecumseth Mayor Richard Norcross, Midland Mayor Bill Gordon, Penetanguishene Mayor Doug Rawson, Bradford Mayor James Leduc, Clearview Mayor Doug Measures, Ramara Mayor Basil Clarke, Collingwood Mayor Yvonne Hamilton, and Innisfil Mayor Lynn Dollin.