Toronto, Ontario -- During a press conference held in Ottawa on Monday, Tim Reuss, president and chief executive officer of the Canadian Automobile Dealers Association, unveiled a series of regulatory proposals his organization believes could prevent an affordability crisis in Canada.
“Today, we are launching CADA’s automotive competitiveness framework which outlines concrete regulatory actions we urge the next Canadian government to take in order to protect consumers, small business auto dealers and the economy,” he said. “The Canadian automotive sector is in turmoil thanks as a result of the U.S. tariffs, and, while we applaud the Canadian government for its measured approach to not make things worse, it is clear we are fast approaching a consumer affordability crisis.”
The regulatory changes he proposes include ending federal electric vehicle sales mandates, expanding acceptance of global vehicle standards, preventing major banks from entering the vehicle leasing market, removing the federal luxury vehicle tax and reimbursing dealers for unrepaid EV incentives. According to CADA, this framework is a roadmap for policymakers to restore stability and improve affordability in a sector facing significant economic headwinds.
During the press event, Reuss said the recommendations are aimed at addressing market strain and regulatory uncertainty. He argued that Canada’s EV rollout has slowed because of inadequate infrastructure development and declining government purchase incentives. While interest in EVs remains high, officials at the organization says the regulatory landscape is not keeping up with consumer demand.
Reuss also called for recognition of vehicle compliance standards from the E.U., Japan and South Korea to increase the availability of vehicle models in Canada and help offset market volatility triggered by U.S. trade actions.
He also raised concerns about potential changes to Canadian law that could allow federally regulated banks to lease vehicles directly to consumers. This could disrupt dealer financing relationships and create conflicts of interest in the retail automotive market.
Additionally, the association is urging the federal government to eliminate the luxury vehicle tax, claiming it is ineffective, expensive to administer, and increasingly being avoided by consumers through tax planning strategies.
CADA is also requesting repayment of approximately $10 million in incentives that dealers fronted under the now-suspended federal iZEV program. The rebate initiative, which supported zero-emission vehicle sales, was halted earlier this year.
