Thank you, Madam Chair and members of the committee.
It's my pleasure to appear today to discuss the Government of Canada's actions to support the automotive sector and the workers who are the foundation of this industry.
For over a century, Canada's auto industry and its dedicated workforce have been a pillar of the Canadian economy.
In 2025, the sector contributed over $17 billion to Canada’s gross domestic product and supported more than 120,000 direct jobs across the country. It remains, of course, one of Canada’s largest export industries.
Earlier this year, the government launched Canada’s automotive strategy to protect the industry in the face of trade disruptions and to position it to become a global leader in next-generation vehicle manufacturing. ISED is mainly responsible for the strategic response fund component of the auto strategy, so I can summarize the strategy in my remarks, but I suggest that specific questions related to each element be directed to the appropriate departments.
This strategy charts a course for a sector that is electrifying and becoming increasingly competitive on a global scale. It aims to protect manufacturers operating in Canada and their supply chains, while attracting new investments.
The Government of Canada announced an allocation of up to $3 billion through the strategic response fund and up to $100 million through the regional tariff response initiative to support large-scale projects and small and medium-sized enterprises across the automotive supply chain.
The government is also seeking to strengthen the automotive duty remission framework to better align trade policy with industrial objectives, while maintaining countertariffs on U.S. vehicle imports for as long as necessary to protect Canadian workers and manufacturers.
At the heart of the strategy is the long-term certainty it provides regarding projections for reducing emissions from light-duty vehicles, which is particularly relevant to this committee.
The Government of Canada will introduce new Canada-specific greenhouse gas emissions standards for light-duty vehicles for model years 2027 to 2032, and will repeal the electric vehicle availability standard in order to provide a more flexible, outcome-based approach that supports emissions reductions in a technology-neutral manner, enabling industry to adapt to market conditions and consumer demand.
To support electric vehicle adoption, the Government of Canada has launched a new five-year electric vehicle affordability program. This program provides up to $5,000 for battery electric and fuel cell vehicles and up to $2,500 for plug-in hybrid vehicles to help make zero-emission vehicles more accessible to Canadian families and businesses.
In parallel, the Government of Canada will develop a national charging infrastructure strategy supported by a $1.5-billion investment through the Canada Infrastructure Bank. This initiative seeks to accelerate the deployment of charging infrastructure, leverage private sector investment and ensure that Canadians have reliable access to charging across the country. Taken together, these measures are aiming to support an automotive sector that is competitive, resilient and aligned with Canada’s environmental and economic objectives.
Thank you. I look forward to your questions.