Zero-emission vehicles must by 60 per cent of new sales by 2030, 100 per cent by 2035
OTTAWA – New rules for zero-emission vehicle sales in Canada will give big bonuses to foreign automakers, at the expense of companies that make cars here said one industry expert on Tuesday.
Flavio Volpe, President of the Automotive Parts Manufacturers’ Association, said the rules the Canadian government announced will undercut the domestic industry after the federal government spent billions to attract new battery plants and other facilities.
Environment Minister Steven Guilbeault released the new rules at a press conference in Toronto. The rules also set targets for car makers, mandating that 20 per cent of their sales are electric or plug-in-hybrid vehicles vehicles by 2026, 60 per cent by 2030 and 100 per cent by 2035. The rules apply to light-duty vehicles like cars and SUVs, as well as some pick-up trucks.
Automakers who miss their targets will face financial penalties, but can avoid them by buying credits from other automakers. They can also receive credits for building electric vehicle chargers and can earn credits for sales that come in advance of the new rules coming into place in 2026.
The latest numbers from Statistics Canada show that electric vehicles or hybrids made up about 10 per cent of sales so far this year. Quebec and British Columbia, where there are significant provincial rebates, are above the 20 per cent threshold.
“For the life of me, I can’t find the Tesla manufacturing plant in Canada, but we’re going to bonus them because they sell us EVs,” he said. “They’re going to hand them credits for nothing. They didn’t invest a dollar in Canada.”
For every $20,000 companies spend on charging infrastructure they will get a credit equal to a vehicle that should have been part of their EV sales target. Volpe said for major automakers that could amount to millions of dollars in spending.
Guilbeault announced the draft rules a year ago. He said by getting out ahead with final regulations Canada will get more electric vehicles, eliminating some of the long delays consumers have faced.
“We will do this by ensuring more electric cars come to the Canadian market, instead of the US or other markets that have similar targets,” he said. “The new electric vehicle availability standard now includes an early credit system to help automakers comply by encouraging them to get more EVs on the market as early as possible and even next year, and to build more charging infrastructure.”
“The electricity you buy to power your electric vehicle is much cheaper than gasoline and not subject to the volatility of international oil prices and the maintenance cost of EVs are a fraction of internal combustion cars,” he said.
Volpe said Canadian automakers will likely have to bring in cars from other places around the world to meet these targets.
“Those companies that make those cars here in Canada also make electric vehicles and other places they’ll likely just import vehicles made somewhere else to meet the targets. If you do that, you’re undercutting your local value proposition,” he said. “We absolutely need to decarbonize the transportation sector, but we shouldn’t do it by driving business to our biggest competitors.
David Adams, president and CEO of Global Automakers of Canada, said his members, which include major companies like Toyota, BMW, Mazda and Honda, want to reach these goals but many factors outside their control will make it difficult.
Adams said the federal government has to be at the table to work through the issues that will arise.
“We need a dedicated forum for the federal government to come together with key stakeholders to ensure that we are focused on the objective of the greenhouse gas emissions reductions expected.”
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:GOOS)
The Canadian Press. All rights reserved.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
The Canadian Press. All rights reserved.
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:TD)
The Canadian Press. All rights reserved.
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