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 – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
Companies in this story: (TSX:ROOT)
The Canadian Press. All rights reserved.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
The Canadian Press. All rights reserved.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Companies in this story: (TSX:TRZ)
The Canadian Press. All rights reserved.
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