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: 2025-10-19 to 2025-10-25

📋 In This Week's Newsletter

• 🏛️ This Week's Parliamentary Committee Calendar
• 🇨🇦 Canadian Federal GR News
• 🗺️ Canadian Provincial GR News
• 💬 Government Consultations
• 📚 What We're Reading This Week

This Week's Parliamentary Committee Calendar

• Industry and Technology Committee to Examine Canadian Auto Industry and Stellantis Commitments: The House of Commons Industry and Technology Committee will hold a session on October 27 to study the Canadian auto industry in light of Stellantis' recent decisions. Key witnesses include representatives from the Canadian Automobile Dealers Association, Canadian Vehicle Manufacturers’ Association, and Global Automakers of Canada. The meeting will run from 11:00 a.m. to 1:00 p.m. with a webcast available.
• Environment and Sustainable Development Committee Reviews Effectiveness of Canada's 2030 Emission Reduction Plan: On October 27, the committee will hear from Clean Prosperity, Pembina Institute, and Keystone Agricultural Producers in a study on Canada’s 2030 Emissions Reduction Plan, with testimony also expected from the National Coalition of Chiefs and former Toronto Mayor David Miller.
• Senate Foreign Affairs and International Trade Committee Schedules CUSMA and North American Trade Review: On October 29, the Senate Foreign Affairs and International Trade Committee will meet in camera to examine CUSMA and Canada’s trade relationships with the US and Mexico. Witnesses will include Ambassador Kirsten Hillman and senior officials from Global Affairs Canada, plus representatives from the Canadian Steel Producers Association and Aluminium Association of Canada.

Canadian Federal GR News

Federal Government Cuts GM and Stellantis Vehicle Import Quotas Following Production Reductions

On October 24, the Department of Finance announced significant reductions in the vehicle import quotas for General Motors and Stellantis. The move follows the automakers’ decisions to curtail production operations in Canada, with GM reducing production in Oshawa and Ingersoll, and Stellantis cancelling production at its Brampton plant. As a result, the government reduced GM’s annual remission quota by 24.2% and Stellantis' by 50%. Under Canada’s auto remission framework, automakers may import vehicles from the U.S. duty-free, provided domestic production commitments are upheld. The reductions are a direct response to non-compliance with these terms, aligning with the federal position that automakers fulfill contractual obligations to both the country and the employees impacted.

Sources: Announcements: www.canada.ca

CBSA Initiates Dumping and Subsidy Investigation into Chinese Truck Bodies

The Canada Border Services Agency launched parallel anti-dumping and subsidy investigations on imported truck bodies from China, following a complaint brought by Canadian manufacturers Morgan Canada Corporation and Morgan Transit Corporation. The complaint outlines losses due to price undercutting, depressed booking rates, and adverse effects on market share and employment. The Canadian International Trade Tribunal (CITT) will begin an inquiry to determine injury to Canadian industry, with a preliminary decision set for December 23, 2025. In tandem, the CBSA will rule on unfair pricing and subsidy allegations by January 22, 2026. These investigations fall within Canada’s broader suite of 158 special import measures intended to shield local industries and jobs from unfair foreign practices.

Sources: Announcements: www.canada.ca

Federal Justice Ministry Unveils Stricter Bail and Sentencing Laws to Combat Auto Theft and Organized Crime

The federal government introduced the Bail and Sentencing Reform Act in Brampton on October 24, detailing tightened bail conditions and harsher sentencing focused on repeat and organized crime, with a specific emphasis on auto theft. The bill establishes new reverse onus provisions for violent and organized auto theft, requiring accused parties to demonstrate eligibility for bail. Sentencing changes would mandate consecutive sentences for repeat and violent crimes, including vehicle theft, and add aggravating factors to offences that disrupt critical infrastructure. The proposed legislation is designed to impact bail decisions related to offences such as home invasion, commercial theft, and organized crime. Provincial and territorial governments are expected to support the rollout and administration as the bill moves forward.

Sources: Announcements: www.canada.ca

Minister Joly Lays Out Canada’s Industrial and Auto Sector Priorities Amid Global Economic Shifts

Industry Minister Mélanie Joly, in an October speech to business leaders, outlined a multi-pronged strategy for Canadian industrial leadership with specific reference to the auto sector. The plan prioritizes immediate protection of key industries facing U.S. tariffs, including autos, steel, aluminum, and copper. Joly announced a $5 billion Strategic Response Fund to help businesses adapt to shifting global markets, and stressed the importance of maintaining domestic auto sector strength for broader economic impacts. Long-term measures include a new Buy Canadian policy and major project investments, with defence procurement highlighted as a catalyst for both industrial growth and diversification. The approach includes targeted support for labour and supply chain partnerships, and aims to speed the approval process for major projects, including in transportation. Export development, domestic champion building, and investment attraction were further detailed as part of the government’s approach.

Sources: Announcements: www.canada.ca

Senate Committee Examines Net-Zero Advisory Body Report on Industrial Policy

The Senate’s Standing Committee on Energy, the Environment and Natural Resources hosted Robert Hornung, chair of the Net-Zero Advisory Body (NZAB), for a review of Canada’s industrial policy in the context of net-zero goals. Hornung’s presentation described the current policy approach as fragmented, citing a need for sector prioritization and greater stakeholder cohesion—including more direct involvement from municipalities and Indigenous groups. Committee members and witnesses pointed out inconsistent approaches to scaling up technology, a lack of national technical capacity, and concerns over the impact of U.S. tariffs on the growth of Canada’s EV sector. The NZAB called for the creation of a central procurement agency and stronger research capability. The report’s final recommendations await formal government response.

Sources: Transcripts: senparlvu.parl.gc.ca

Senate Finance Committee Focuses on Fiscal Tools and Export Risks Amid Low-Carbon Transition

The Senate National Finance Committee reviewed updates on Canada’s transition to a low-carbon economy, with commentary from York University’s Prof. Olaf Weber and other financial experts. Discussions addressed the slow reduction of emissions in the oil and gas sector, fiscal risks from climate change, and the need for blended financing and investment in low-carbon infrastructure. Sen. Gignac raised questions about the longer-term viability of LNG exports, with witnesses cautioning against overreliance on these projects and emphasizing battery technology and renewables instead. Panelists discussed exposure to international carbon border adjustment mechanisms and potential effects on automotive and manufactured exports. EDC representatives highlighted their role in supporting Canadian exporters, especially in light of global carbon regulations.

Sources: Transcripts: senparlvu.parl.gc.ca

Senate Committee Reviews Border Security, Organized Crime, and Auto Theft Initiatives

Minister Gary Anandasangaree appeared before the Senate National Security, Defence and Veterans Affairs Committee to review government strategies addressing public safety, including new plans targeting auto theft and organized crime at the border. The minister detailed a $1.3 billion border security plan and referenced the National Action Plan on Auto Theft as well as new legislative measures, including Bill C-12 and the in-progress regulations for Bill C-21. Committee discussions also covered budget priorities for the RCMP, the establishment of Chief Firearms Officers in the Arctic, and the privacy implications associated with enforcement expansion. The meeting closed with updates on data governance and recruitment for border security teams.

Sources: Transcripts: senparlvu.parl.gc.ca

Consumer Protection Funding Announced for Over 25 Projects

The federal government, through Innovation, Science and Economic Development Canada, announced CCPI funding support for more than 25 projects targeting consumer protection. These projects, aimed at research and communications initiatives, will examine marketplace affordability and transparency—some touching on vehicle retailing and financing. The investments will resource not-for-profits and consumer organizations to address a range of issues—including those affecting auto retail and leasing—and produce awareness campaigns to better inform Canadian consumers navigating evolving products and regulations.

Sources: Announcements: www.canada.ca

Advance Manufacturing Estimates Show September Sales Gains Led by Transportation Equipment

Statistics Canada’s advance release for September indicates that total manufacturing sales rose 2.8%. Transportation equipment and petroleum/coal subsectors recorded the largest gains, suggesting higher volumes or values for automotive components and finished vehicles relative to prior months. Firms can access underlying data for more detailed business planning.

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

Retail Trade Up in August on Strength of Motor Vehicle and Parts Sales

Retail sales rose 1.0% to $70.4 billion in August, with six of nine sectors posting gains. Motor vehicle and parts dealers accounted for the largest share of the increase, indicating solid demand through the late summer retail period.

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

New Survey Data Available on Electric Vehicle Usage and Charging Habits

Statistics Canada released results from the 2023 Households and the Environment Survey, providing granular data on household electric vehicle usage, distance travelled, and charging practices. The dataset is available for industry and policy analysis by request.

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

Canadian Provincial GR News

Ontario Introduces Legislation to Increase Competitiveness and Simplify Permitting for Auto and Other Sectors

Ontario’s government proposed the Building a More Competitive Economy Act to accelerate permitting, consolidate approval systems, and encourage local procurement—specifically mentioning support for the auto industry through fleet purchase policy consultations.

Sources: Provincial Announcement: news.ontario.ca

Québec Grants Carrier Enforcement Officers Authority to Carry Firearms for Road Safety Operations

Québec has authorized road carrier enforcement officers to carry firearms beginning in November 2025, with implementation steps focused on compliance and safety standards for both officers and cargo transport monitoring.

Sources: Provincial Announcement: www.quebec.ca

Ontario Introduces Bill to Expedite Infrastructure and Road Construction

Ontario tabled the Fighting Delays, Building Faster Act, 2025, proposing to lighten procedural requirements for road, housing, and infrastructure projects, and mandates uniform construction standards across municipalities.

Sources: Provincial Announcement: news.ontario.ca

Government Consultations

Health Canada Opens Consultation on DEET and Toluamide Pesticide Label Modernization

Health Canada is seeking public input on proposed label updates for DEET and related toluamides in pesticide end-use products, aligning labels with current health and environmental requirements. The consultation runs until January 21, 2026.

Sources: Canadian Government Consultations: www.canada.ca

What We're Reading This Week

• Ottawa’s move to curb tariff relief for GM, Stellantis will harm country’s auto sector, manufacturers say: Manufacturers warn about the impact of the federal government's reduction of tariff relief on auto sector competitiveness.
• Ottawa rolls back tariff relief for GM, Stellantis after auto production cuts: The government’s response to production cuts prompts new import restrictions on major automakers.
• For bailing on promises to Canada, Stellantis and GM will have to pay duty on U.S. vehicles, Carney government says: Stellantis and GM face new duties following reduction in Canadian manufacturing commitments.
• MPs to dig into 'crisis in Canada’s automotive sector' amid Stellantis fallout: Parliamentary committee prepares study on the current challenges facing the automotive sector.
• General Motors to stop BrightDrop van production in Ontario: GM announces the end of BrightDrop electric van production at its Canadian plant.
• Michigan terminates controversial EV battery plant and seeks to claw back millions in incentives: Michigan ends an EV battery project and pursues recovery of state-provided incentives.
• David Olive: Why does Canada not launch an EV automaker of its own?: A column examines barriers and prospects for a Canadian-owned electric vehicle OEM.
• Ontario hit NextStar EV battery plant in Windsor with 10 stop work orders over hazards, documents show: Official reports confirm multiple safety-related work stoppages at a major Ontario battery facility.
• Canada’s costly EV scheme stalls out again: An editorial assesses the financial and operational challenges facing Canada’s EV industrial policy.
• Opinion: The EV industry is sputtering. Too bad Ontario bet so heavily on a battery-driven future: Commentary explores the risks and outcomes from Ontario's investments in EV and battery plants.

.