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: 2025-11-30 to 2025-12-06

📋 In This Week's Newsletter

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

This Week's Parliamentary Calendar

• Senate Standing Committee on Transport and Communications to Examine Budget Bill C-15 Divisions Impacting Transport Sector: On December 10, the Senate Standing Committee on Transport and Communications will study Divisions 1, 2, 24, 28, and 29 of Part 5 of Bill C-15, with Sandra Schwartz (Canadian Parks and Wilderness Society), Drew Spoelstra (Ontario Federation of Agriculture), and Matti Siemiatycki (University of Toronto) as witnesses. The meeting will be held in Room B45, Senate of Canada Building, at 6:45 p.m., with videoconference participation.

Canadian Federal Government News

CRA Lifts Moratorium on T4A Penalties in Trucking Sector

The Canada Revenue Agency (CRA) has removed the moratorium on penalties for businesses in the trucking industry that fail to report payments for services exceeding $500, effective for the 2025 and subsequent tax years. Payments to Canadian-controlled private corporations must now be reported in box 048 of the T4A slip by February 28, 2026. This action follows earlier investments in Budget 2025 to bolster CRA enforcement capacity in the sector. The CRA indicated that additional guidance will be issued to clarify which businesses are affected and to support compliance.

Sources: www.canada.ca

Senate Energy Committee Reviews Bill C-15 Environmental Tribunal Provisions

On December 2, the Standing Senate Committee on Energy, the Environment and Natural Resources examined provisions of Bill C-15 related to the creation of the Environmental Protection Tribunal of Canada (EPTC) within the Canadian Environmental Protection Act. Environment and Climate Change Canada's Stephanie Lane described how Division 32 would transfer current enforcement powers to the new body, with formal backing by the Administrative Tribunals Support Service of Canada (ATSSC). Discussion included the independence of tribunal review officers and constitutional considerations. The bill also proposes replacing 'review officer' with 'tribunal' to standardize terminology across federal adjudicative bodies.

Sources: senparlvu.parl.gc.ca

Competition Bureau Addresses Senate on Bill C-15: Competition and Greenwashing

On December 4, Competition Bureau representatives presented to the Senate Standing Committee on Banking, Commerce and the Economy regarding Bill C-15. The Bureau addressed Divisions 9 and 43, covering the new Consumer-Driven Banking Act and revised greenwashing provisions in the Competition Act. The consumer-driven banking reforms are intended to facilitate open banking by letting consumers securely share their data, increasing provider competition and innovation. The greenwashing amendments shift substantiation requirements for environmental claims, removing the need for internationally recognized methodologies but maintaining substantiation expectations, and eliminate the right of third parties to bring greenwashing complaints directly under this section. The Bureau confirmed it will update its guidelines should these changes be enacted.

Sources: www.canada.ca

Planning Project to Study Hydrogen Options for GTHA Transit Fleets

A $1.25 million investment has been announced by Housing, Infrastructure and Communities Canada to support a planning project examining hydrogen fueling options for public transit agencies in the Greater Toronto and Hamilton Area. The project, delivered in partnership with the Canadian Hydrogen Association and the Canadian Urban Transit Research and Innovation Consortium, will produce a low-carbon fleet transition plan, assess the feasibility of a hydrogen fueling hub, and gather real-world data to inform future program improvements. The initiative is designed to support regional decarbonization of transit operations.

Sources: www.canada.ca

Inspection Blitz Targets Truck Driver Misclassification

Employment and Social Development Canada has launched an inspection blitz in the Hamilton and Greater Toronto Area focused on identifying worker misclassification in the federally regulated trucking sector. The blitz seeks to enforce compliance with the Canada Labour Code by investigating cases where drivers are treated as independent contractors rather than employees, which can impact workers' access to employment standards, benefits, and social programs. Information collected will be shared with the CRA to facilitate coordinated enforcement.

Sources: www.canada.ca

Treasury Board Launches Horizontal Red Tape Reviews Across Federal Organizations

The President of the Treasury Board announced a new phase of regulatory reform via horizontal red tape reviews, expanding on the earlier 60-Day Red Tape Review. The reviews will address regulatory efficiency in project reviews, getting products to market, reducing business barriers, supporting international trade, and improving service delivery. The Red Tape Reduction Summit convened government officials and business representatives to discuss system-wide opportunities for regulatory streamlining.

Sources: www.canada.ca

Commercial and Industrial Equipment Rental Revenues Rise in 2024

According to Statistics Canada, the commercial and industrial machinery and equipment rental and leasing industry reported $18.1 billion in operating revenue in 2024, a 4.5% increase from the previous year. This growth reflects ongoing demand in the sector, including rental and leasing of vehicles and related equipment.

Sources: www.statcan.gc.ca

Biographical Notes: Andrew D. Mutch, President of Michelin North America (Canada) Inc.

The Department of Finance Canada published biographical information on Andrew D. Mutch, President of Michelin North America (Canada) Inc. Mutch oversees Canadian operations and sits on the US-Canada Board of Directors. His experience includes plant management, risk mitigation, and service on the Board of the Tire and Rubber Association of Canada.

Sources: www.canada.ca

Canadian Provincial Government News

Ontario Welcomes $85 Million Investment in Advanced Manufacturing Sector

Sandvik will invest over $85 million in a new maintenance, repair, and overhaul facility in Greater Sudbury, supporting 400 existing and more than 60 new jobs. The facility will serve as a regional hub for advanced technologies, including battery-electric vehicle servicing.

Sources: news.ontario.ca

BC Invests $500,000 in Clean Technology Pilots for Transportation Corridor

British Columbia is funding three pilot projects along the Prince Rupert–Prince George corridor to demonstrate zero- and low-emission technologies for medium- and heavy-duty vehicles, including renewable diesel and hydrogen modules.

Sources: news.gov.bc.ca

Alberta Issues New Emissions and Regulatory Amendments

Alberta approved new regulations under the Emissions Management and Climate Resilience Act, including amendments to technology innovation, administrative penalties, and environmental assessment regulations.

Sources: www.alberta.ca

Manitoba Legislative Session Adjourns, Moves Forward With Vehicle Registration Legislation

Manitoba adjourned its 43rd legislative session until March 2026, advancing the Manitoba Public Insurance Corporation Amendment Act to maintain the province’s current vehicle registration model.

Sources: news.gov.mb.ca

Québec Opens Public Review on ESG Integration Standard

The Bureau de normalisation du Québec is holding a public review on a draft national standard for integrating ESG factors into business practices, with comments accepted until January 31, 2026.

Sources: www.quebec.ca

Government Consultations

Consultation: Proposed New Requirements for Lithium-Ion Batteries

Health Canada has launched a consultation on proposed mandatory requirements for lithium-ion batteries and consumer products containing them under the Canada Consumer Product Safety Act. The consultation runs through February 14, 2026.

Sources: www.canada.ca

Potential Amendments to Valuation for Duty Regulations

The Canada Border Services Agency is consulting on possible changes to the Valuation for Duty Regulations to clarify the definition of 'sold for export to Canada' and address regulatory loopholes for non-resident importers.

Sources: www.cbsa-asfc.gc.ca

What We're Reading This Week

• Element Fleet Management buying vehicle payment technology firm Car IQ: Element Fleet Management expands its digital capabilities with the acquisition of Car IQ.
• Federal government serving Stellantis with notice of default on federal contract: The federal government has notified Stellantis of a default on its contract related to automotive investment support.
• Powering the drive toward net-zero: Coverage of strategies and corporate activity in Canada's transition to net-zero transportation.
• Canadian company’s armoured-vehicle production for ICE taking place in U.S.: Canadian armoured vehicle manufacturing for ICE is occurring at U.S. facilities.
• Business Matters: Canadian firm Roshel to provide ICE with armoured vehicles: Roshel, a Canadian company, secures a contract to supply armoured vehicles to U.S. Immigration and Customs Enforcement.
• ICE says armoured vehicles ordered from Roshel produced in U.S.: U.S. ICE confirms armoured vehicles from Roshel are produced in the U.S., not Canada.
• Chinese Carmakers Retreat From Record Share of European Sales: Chinese automakers have pulled back from recent highs in the European auto market.
• Opinion: Diluting the European green agenda plays into the hands of Chinese electric carmakers: Analysis of how changes to Europe's climate policies could benefit Chinese EV manufacturers.

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