{"id":80734,"date":"2026-02-06T08:00:36","date_gmt":"2026-02-06T13:00:36","guid":{"rendered":"https:\/\/wawa-news.com\/?p=80734"},"modified":"2026-02-06T07:26:15","modified_gmt":"2026-02-06T12:26:15","slug":"carney-launches-new-strategy-to-transform-canadas-auto-industry","status":"publish","type":"post","link":"https:\/\/wawa-news.com\/index.php\/2026\/02\/06\/carney-launches-new-strategy-to-transform-canadas-auto-industry\/","title":{"rendered":"Carney launches new strategy to transform Canada\u2019s auto industry"},"content":{"rendered":"<p>February 5, 2026<br \/>\nVaughan, Ontario<\/p>\n<p><a href=\"https:\/\/wawa-news.com\/wp-content\/uploads\/2024\/09\/Canada.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-69448\" src=\"https:\/\/wawa-news.com\/wp-content\/uploads\/2024\/09\/Canada.png\" alt=\"\" width=\"300\" height=\"401\" srcset=\"https:\/\/wawa-news.com\/wp-content\/uploads\/2024\/09\/Canada.png 300w, https:\/\/wawa-news.com\/wp-content\/uploads\/2024\/09\/Canada-224x300.png 224w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>The world is changing rapidly, fundamentally reshaping trade relationships and leaving economies, businesses, and workers under a cloud of uncertainty. Canada\u2019s automotive industry is on the frontline of this shift, with more than 90% of Canadian-made vehicles and 60% of Canadian-made auto parts currently exported to the U.S.<\/p>\n<p>Canada\u2019s new government is focused on what we can control \u2013 implementing a\u00a0<a href=\"https:\/\/www.pm.gc.ca\/en\/news\/news-releases\/2025\/09\/05\/prime-minister-carney-launches-new-measures-protect-building\">new industrial strategy<\/a>. We are transforming our economy from one that is reliant on a single trade partner to one that is more resilient to global shocks \u2013 a stronger, more sustainable, more independent economy built on the solid foundation of strong Canadian industries and bolstered by diverse international trade partners. In parallel, the government is launching a national electricity strategy to leverage our energy advantage to provide clean, affordable, and reliable power to Canadians.<\/p>\n<p>These shifts present a unique opportunity to transform Canada\u2019s auto industry. To that end, the government is introducing a new auto strategy that rewards the production of made-in-Canada vehicles and harnesses our world-class capabilities in artificial intelligence and technology expertise to build the cars of the future. This is a strategy that positions Canada to become a global leader in electric vehicle (EV) production.<\/p>\n<p>Today, the Prime Minister, Mark Carney, announced the following new measures:<\/p>\n<ol>\n<li><strong>To accelerate investment in Canada\u2019s auto manufacturing sector, Canada\u2019s new government will:<\/strong>\n<ul>\n<li>Allocate $3\u00a0billion from the\u00a0Strategic Response Fund and up to $100\u00a0million from the\u00a0Regional Tariff Response Initiative to help the auto industry adapt, grow, and diversify to new markets.<\/li>\n<li>Harness the\u00a0Productivity Super-Deduction and reduced corporate tax rates for zero-emission technology manufacturers to encourage investment in clean technologies and EVs.<\/li>\n<\/ul>\n<\/li>\n<li><strong>To rationalise emissions reduction policies to focus on outcomes that matter to Canadians, Canada\u2019s new government will:<\/strong>\n<ul>\n<li>Introduce stronger <strong>greenhouse gas emission standards<\/strong> that\u00a0put Canada on a path to achieve a goal of 75% EV sales by 2035 and 90% EV sales by 2040 \u2013 reducing our carbon footprint and securing Canada\u2019s global leadership in clean energy.<\/li>\n<li>These more stringent emissions standards will enable the Government of Canada to repeal the Electric Vehicle Accessibility Standard. This approach will allow manufacturers to use a wide array of technologies to meet the standards and respond to consumer preferences in the near-term, while driving EV adoption over time.<\/li>\n<\/ul>\n<\/li>\n<li><strong>To strengthen domestic demand by making EVs more affordable and reliable for Canadians, Canada\u2019s new government will:<\/strong>\n<ul>\n<li>Launch a <strong>five-year EV Affordability Program<\/strong> to lower the cost of EVs for Canadians and create a stronger domestic consumer market.\n<ul class=\"bulletOutline\">\n<li>The new $2.3\u00a0billion program will offer individuals and businesses purchase or lease incentives of up to $5,000 for battery electric and fuel EVs, and up to $2,500 for plug-in hybrids (PHEVs) with a final transaction value of up to $50,000 on cars made by countries Canada has free trade agreements with. To support the Canadian automotive industry, this $50,000 cap will not apply to Canadian-made EVs and PHEVs.<\/li>\n<\/ul>\n<\/li>\n<li>Enhance <strong>our national EV charging network<\/strong> through investments of $1.5\u00a0billion through the Canada Infrastructure Bank\u2019s\u00a0Charging and Hydrogen Refueling Infrastructure Initiative, making it easier and more convenient for drivers to charge their EVs across the country.<\/li>\n<\/ul>\n<\/li>\n<li><strong>To establish a comprehensive trade regime that strengthens the competitiveness of the auto sector, Canada\u2019s new government will:<\/strong>\n<ul>\n<li>Strengthen <strong>Canada\u2019s automotive remission framework<\/strong> to reward companies that produce and invest in Canada.<\/li>\n<li>Maintain <strong>counter-tariffs on auto imports from the United States<\/strong> to ensure a level playing field for Canadian automotive manufacturers in the domestic market.<\/li>\n<li>Canada recently deepened its strategic partnership with the Republic of Korea by signing a memorandum of understanding (MOU) to strengthen Canada-Korea industrial collaboration for future mobility. This builds on other MOUs that Canada has signed with global automakers to promote cooperation.<\/li>\n<li>Canada has also agreed to a new strategic partnership with China, a global leader in EV manufacturing, to further diversify trade and catalyse new investment in the automotive sector. The recently announced partnership will look to drive new Chinese joint venture investment in Canada and allow for a fixed volume of Chinese EV imports into the Canadian market.<\/li>\n<\/ul>\n<\/li>\n<li><strong>To protect Canadian auto workers and businesses from immediate pressures while helping them bridge them to the future, Canada\u2019s new government will:<\/strong>\n<ul>\n<li>Provide support to employees through <strong>a new Work-Sharing<\/strong> <strong>grant\u00a0<\/strong>\u2013 preventing layoffs and supporting worker retention so businesses can plan for the future.<\/li>\n<li>Establish <strong>a new workforce alliance<\/strong> of industry, labour, and training partners to address bottlenecks and catalyse private investment.<\/li>\n<li>Provide employment assistance and reskilling supports for up to 66,000 workers across Canada, including for displaced auto workers, with a $570\u00a0million investment.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p>Canada\u2019s new government will leverage our new and existing trade agreements \u2013 including our\u00a0<a href=\"https:\/\/www.pm.gc.ca\/en\/news\/news-releases\/2026\/01\/16\/prime-minister-carney-forges-new-strategic-partnership-peoples\">recent EV arrangement with China<\/a> \u2013 to catalyse massive new investment in the sector, diversify Canada\u2019s auto export markets, and position Canada as a global leader in EVs. Canadian workers and industries are well equipped to seize this opportunity, and our government is making generational investments in critical minerals, including those essential for batteries, to secure our place in the world\u2019s most important supply chains.<\/p>\n<p>The choices we make now will shape the Canadian auto industry for decades to come. By protecting the industry and incentivising automakers to build here, we can transform Canada\u2019s workers and businesses to compete and win in this new global environment.<\/p>\n<p>Today\u2019s measures build on previously announced initiatives to\u00a0help transform strategic Canadian\u00a0industries, including\u00a0<a href=\"https:\/\/www.pm.gc.ca\/en\/news\/news-releases\/2025\/07\/16\/prime-minister-carney-announces-new-measures-protect-and-strength\">steel<\/a>\u00a0and\u00a0softwood lumber. Together, they form an ambitious industrial strategy that will build a stronger, more resilient, more independent Canadian economy, and ensure workers and industries can bridge to that future and seize its opportunities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>February 5, 2026 Vaughan, Ontario The world is changing rapidly, fundamentally reshaping trade relationships and leaving economies, businesses, and workers under a cloud of uncertainty. Canada\u2019s automotive industry is on the frontline of this shift, with more than 90% of Canadian-made vehicles and 60% of Canadian-made auto parts currently exported to the U.S. Canada\u2019s new &#8230;<\/p>\n","protected":false},"author":61,"featured_media":73751,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[],"class_list":["post-80734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal"],"publishpress_future_action":{"enabled":false,"date":"2026-04-27 12:38:50","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/posts\/80734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/comments?post=80734"}],"version-history":[{"count":1,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/posts\/80734\/revisions"}],"predecessor-version":[{"id":80735,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/posts\/80734\/revisions\/80735"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/media\/73751"}],"wp:attachment":[{"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/media?parent=80734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/categories?post=80734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/tags?post=80734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}