Dealers’ five-point plan to tackle vehicle affordability

The Canadian Automobile Dealers Association (CADA) recently announced the Canadian “Automotive Competitive Framework,” outlining steps for the next federal government to ensure the auto industry remains competitive and addresses the looming consumer affordability crisis.

The federal Liberals were elected with the most seats in Ottawa, though unable to obtain a majority government. This plan was released in Ottawa ahead of the election,

“CADA’s Automotive Competitiveness Framework outlines concrete regulatory actions we urge the next Canadian Federal Government to take in order to protect consumers, small business auto dealers and the economy,” said Tim Reuss, CEO of CADA. CADA represents about three thousand two hundred dealers across Canada, employing one hundred seventy-eight thousand people.

Reuss highlighted the turmoil in the Canadian automotive sector due to US tariffs and praised the Canadian government’s measured response. However, he warned of an approaching consumer affordability crisis.

The framework proposes five key actions:

End Canada’s EV mandates:

While Canada has increased the number of electric vehicles on the road, the buildup of charging infrastructure has lagged, and purchase incentives have been reduced.

Expand Canada’s automotive regulatory framework

CADA suggests accepting vehicle compliance certificates from Japan, Korea, and the European Union to expand trade horizons and avoid retaliation against US activities.

Prevent big banks from competing with small businesses

CADA urges the government not to allow big banks to lease vehicles to consumers, as this would create unfair competition for small business auto dealers.

Scrap the luxury tax on vehicles:

Administering this tax through a new system and process instead of through existing mechanisms such as HST/GST has been costly to the government, manufacturers and dealers, CADA outlined. With the problems and inconsistencies seen, that CRA has been forced to issue countless clarifications an CADA is urging its removal.

Pay the debt owed to car dealers for IZEV incentives:

CADA said its dealers fronted about $10 million dollars on behalf of the Canadian government to consumers at the time they bought an EV.  “This is unacceptable and the government must pay dealers what they are owed,” the group said.