Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news for car manufacturers, parts suppliers, car dealers, and others in the automotive industry. Every Monday, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Automotive? Don’t miss this week’s updates in Manufacturing and Oil & Gas.

Dates: 2025-08-24 to 2025-08-30

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News
• 📚 What We're Reading This Week

Canadian Federal GR News

Canada Invests $22.7 Million to Expand Electric Vehicle Charging Infrastructure in British Columbia

On August 27, the Honourable Gregor Robertson announced nearly $22.7 million in federal funding for eight projects designed to boost electric vehicle (EV) charging capacity across British Columbia. This initiative, delivered through Natural Resources Canada's Zero Emission Vehicle Infrastructure Program, targets main travel routes, public workplaces, and multi-unit residential buildings. British Columbia Hydro and Power Authority is the principal recipient for several allocations, with projects including installation of more than 480 fast chargers in high-demand corridor and community locations. The City of Victoria and District of Saanich will also deploy Level 2 and high-capacity chargers to support fleet electrification and on-road municipal vehicles. These installations are intended to increase charging station availability and address barriers associated with range anxiety for new and existing EV owners in the province.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca

Regional Tariff Response Initiative Launches in Southern Ontario with Focus on Auto and Steel

The Federal Economic Development Agency for Southern Ontario opened applications August 26 under the national $450-million Regional Tariff Response Initiative (RTRI). Minister Evan Solomon stated that nearly $160 million is allocated to southern Ontario over three years, offering targeted assistance to local steel and automotive businesses affected by trade disruptions. The program aims to help eligible manufacturers improve productivity, diversify export markets, and reinforce supply chain resilience. The funding mechanism responds to recent tariff uncertainty and is available for firms contending with barriers in cross-border manufacturing and supply networks. Eligible businesses include those in automotive component and assembly subsectors, with support directed at strategic adaptation and market competitiveness efforts.

Sources: Announcements: www.canada.ca

Federal Support Announced for Innovation within Manitoba’s Manufacturing Sector

Prairies Economic Development Canada will announce significant federal investment on August 28 at Winnipeg’s National Research Council Advanced Manufacturing Research Facility. Minister Eleanor Olszewski, responsible for the Prairies portfolio, will outline funds for innovative projects meant to strengthen and diversify Manitoba’s manufacturing, including automotive and component suppliers. The investment targets research, automation, and technology adoption within the local manufacturing base and may involve partnerships with industry and post-secondary institutions. The initiative is expected to address competitiveness challenges and enhance sectoral growth in the region.

Sources: Announcements: www.canada.ca

PacifiCan Invests $6.8 Million in Battery Repurposing and Textile Recycling Businesses

On August 25, Pacific Economic Development Canada announced over $6.8 million for two Coquitlam enterprises. Moment Energy received $4.9 million to expand production of modular battery energy storage systems derived from repurposed electric vehicle batteries, supporting rapid power deployment for data centres and charging stations. Novo Textile Company was allocated over $1.8 million to increase recycling capacity by blending recovered textile fibres with B.C. wood pulp for domestic manufacture. Funding comes through PacifiCan’s Business Scale-up and Productivity program, which aids scaling of high-growth firms in energy storage and supply-chain technologies. Both companies' initiatives will have implications for automotive battery lifecycle and Canadian supply chain robustness.

Sources: Announcements: www.canada.ca

StatsCan Advance Manufacturing Survey: Transportation Equipment Sales Rose 1.8% in July

Statistics Canada’s advance estimate, published August 26, shows manufacturing sector sales rising 1.8% in July, with transportation equipment, including vehicles and auto parts, registering the largest gains among subsectors. The data signals increased demand for automotive products heading into Q3. Petroleum and coal products also contributed to sector-wide growth. Automotive manufacturers and suppliers may adjust forecasts and operations in response to this short-term trend.

Sources: Open Government Data Set: www.statcan.gc.ca

StatsCan: Wholesale Trade Early Indicator Shows Motor Vehicle Parts Sales Up 1.3% in July

Statistics Canada released early wholesale trade data for July, excluding petroleum and grains, with motor vehicle and parts subsector sales increasing by 1.3%. Distributors and retail chains may see continued inventory movement in vehicle components and accessories, reflective of elevated consumer demand and positive sentiment in the automotive supply chain.

Sources: Open Government Data Set: www.statcan.gc.ca

Industrial R&D Expenditure Dataset Now Available for 2023–2025

Statistics Canada’s Annual Survey of Research and Development in Canadian Industry is available for 2023 actual, 2024 preliminary, and 2025 intentions, enabling automotive sector manufacturers and technology firms to review industry-wide R&D spending, including energy and intellectual property allocations.

Sources: Open Government Data Set: www.statcan.gc.ca

Machinery and Equipment Price Index (June 2025) Published

Statistics Canada released the Machinery and Equipment Price Index for June 2025. Vehicle assemblers, parts manufacturers, and fleet operators may reference price trends for capital investments, with implications for cost management and budgeting in production and equipment acquisition.

Sources: Open Government Data Set: www.statcan.gc.ca

US Federal GR News

USITC Institutes Investigation into Imported Adjustable Child Car Seats on Patent Grounds

On August 28, the U.S. International Trade Commission initiated Investigation No. 337-TA-1459 regarding certain imported child car seats. The complaint, filed July 24 by Wonderland Switzerland AG and associated parties, alleges violations of Section 337 of the Tariff Act due to alleged patent infringement in adjustable child car seats with detachable seat backs or rotatable support bases. Respondents include Dorel Juvenile Group (US) and Dorel Industries Inc. (Canada), among other international manufacturers. The investigation may lead to exclusion orders or cease and desist orders affecting imports and sales of covered car seats. Parties named must respond within 20 days of service of complaint and notice. Automotive retailers and car seat manufacturers with cross-border supply chains may monitor for regulatory impact on product importation and distribution.

Sources: U.S. Federal Announcements: www.federalregister.gov

FMCSA Requests Comment on Emergency Safety Solutions’ Application for Pulsating Brake Lamp Exemption

On August 26, the Federal Motor Carrier Safety Administration issued a notice regarding Emergency Safety Solutions’ (ESS) five-year exemption request from current federal requirements on warning devices and steady-burning exterior lamps for commercial motor vehicles (CMV). ESS’s H.E.L.P. DeliverSAFE system pulses tractor and trailer lamps at a higher frequency during stops to enhance visibility, citing studies from Virginia Tech Transportation Institute showing reduced rear-end collisions. FMCSA seeks public input by September 25, and will review safety analyses, supporting documentation, and public comments before rendering a decision. The exemption would alter compliance obligations for CMVs equipped with the technology, possibly affecting fleet safety protocols, equipment specifications, and vehicle maintenance standards.

Sources: U.S. Federal Announcements: www.federalregister.gov

FMCSA Requests Comments on National Tank Truck Carriers’ Exemption Renewal for Brake-Activated Pulsating Lamps

The Federal Motor Carrier Safety Administration announced August 25 a request for comments on National Tank Truck Carriers, Inc. (NTTC) renewal application for a five-year exemption allowing red or amber brake-activated pulsating lamps on the rear of tank trailers, in addition to steady-burning lamps. Since initial approval in 2020, NTTC members have expanded adoption, with fleet data from Groendyke and Trimac showing reductions in rear-end collisions. FMCSA will review safety performance and industry feedback before making a decision. Exemption status may influence tank trailer lighting installations, operational procedures, and compliance strategies for bulk commodity carriers.

Sources: U.S. Federal Announcements: www.federalregister.gov

EPA Partially Approves California’s Heavy-Duty Vehicle Inspection and Maintenance (HD I/M) Regulation

On August 26, EPA proposed partial approval and partial disapproval of California's HD I/M regulation, a State Implementation Plan revision targeting emissions from non-gasoline vehicles over 14,000 lbs, including out-of-state vehicles operating in California. The Agency supports regulation of California-registered vehicles but flagged concerns about extraterritorial application, citing potential Commerce Clause conflicts and interactions with other states’ SIPs. Public comment period runs until September 25. Pending final decision, automotive manufacturers and cross-border fleet operators may examine compliance obligations associated with the HD I/M program for vehicle export, import, and operation.

Sources: U.S. Federal Announcements: www.federalregister.gov

EPA Takes Final Action on Mojave Desert Air Quality Management District Internal Combustion Engine Rule

On August 28, EPA finalized approval of amendments to the Mojave Desert Air Quality Management District's SIP concerning emissions of volatile organic compounds (VOCs) and oxides of nitrogen (NOx) from internal combustion engines. The update replaces prior versions of Rule 1160 with regulations adopted January 23, 2023. The action also removes a demonstration rule (SCAQMD Rule 1110) and corrects record references. Compliance clocks triggered by previous limited disapproval have now terminated. Engine manufacturers and stationary equipment operators in the region should reference the latest regulatory requirements for emission controls and reporting.

Sources: U.S. Federal Announcements: www.federalregister.gov

Canadian Provincial GR News

Ontario Automotive Parts Manufacturer Fined $25,000 for Environmental Violations

Ventra Group Co. was convicted of two Environmental Protection Act violations and fined $25,000 plus a victim surcharge for operating emissions control equipment below required temperature standards at its Peterborough plastics facility.

Sources: Provincial Announcement: news.ontario.ca

Québec and California Carbon Market Auction Results Announced

The 44th joint Québec-California GHG emission units auction on August 20 generated C$286 million for Québec, with proceeds directed to the Electrification and Climate Change Fund supporting 2030 Plan for a Green Economy priorities.

Sources: Provincial Announcement: www.quebec.ca

Atlantic Ministers of Transportation Call for New Federal Infrastructure Funding

Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador ministers urged the federal government August 28 to create a long-term infrastructure funding program to address shortfalls after existing programs ended, noting impacts to road, highway, and ferry networks crucial for automotive and goods transport.

Sources: Provincial Announcement: news.novascotia.ca

What We're Reading This Week

• Canadian car parts manufacturers hope military contracts open new doors amid Trump trade war: Automotive suppliers see new business opportunities in military supply chains as US trade tensions affect conventional exports.
• Gillian Steward: Carney’s conundrum: Will he abandon some 40,000 farmers to save Canada’s auto industry?: Opinion piece discusses policy tradeoffs between agricultural and auto sectors.
• Quebec premier to testify at inquiry into $500M cost overrun scandal at auto board: Inquiry into SAAQ cost overruns raises accountability questions in provincial vehicle agencies.
• Review: Subaru’s electric Solterra catches up with its competitors: EV market review examines Subaru’s latest electric offering and its position in the Canadian landscape.
• These Companies Want to Tap the Power From Idle EVs: Firms explore vehicle-to-grid solutions using EVs for supplemental power.
• Lowest Labor Day Gas Prices in Five Years as Travel Costs Dip in Trump Economy: White House article summarizes declining gas and rental car costs in 2025.
• This Week in the Trump Economy: Lower Prices, Higher Growth, Record Markets: Economic indicators update features movement in GDP, travel prices, and consumer spending.
• Air Plan Approval; Texas; Interstate Transport Requirements for the 2010 SO2 NAAQS: EPA action affirms Texas’ compliance with interstate air pollution transport requirements.
• Agency Information Collection Activities; New Information Collection: Crash Causal Factors Program: Heavy-Duty Truck Study Data Collection: FMCSA details upcoming nationwide heavy-duty truck crash investigation.
• Approval of the Clean Air Act, Section 112(l), Authority for Hazardous Air Pollutants; State of Connecticut Department of Energy and Environmental Protection: EPA proposes approval of Connecticut amendments on hazardous air pollutants, affecting Title V permitting.

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