Statement from Dennis Darby, President and CEO, Canadian Manufacturers & Exporters regarding the measures announced in Canada’s automotive strategy

OTTAWA, February 5, 2026 –“The federal government’s new national automotive strategy is a necessary course correction that better reflects market realities and the intense trade pressures facing Canada’s auto sector. 

Moving away from rigid EV sales mandates is the right decision. The previous targets did not align with consumer demand, supply chain capacity, or the current cost environment, particularly as ongoing and threatened U.S. trade actions and tariffs continue to raise costs and undermine the competitiveness of Canadian-built vehicles and parts. 

Canadian auto manufacturing operates in a fully integrated North American market. Imposing inflexible EV requirements while facing heightened U.S. trade risk would have put jobs, investment, and domestic production at risk. This more flexible approach recognizes those realities and gives manufacturers the ability to invest and transition as demand evolves. 

CME supports policies that focus on incentives, infrastructure, and affordability — measures that actually drive lower emission and electric vehicle adoption without jeopardizing Canada’s manufacturing base. We look forward to working with the government to ensure this strategy strengthens competitiveness, protects workers, and secures the future of auto manufacturing in Canada.”