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: 2025-12-14 to 2025-12-20

📋 In This Week's Newsletter

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

Canadian Federal Government News

Auto Theft Export Network Dismantled in Joint OPP–CBSA Operation

The Canada Border Services Agency (CBSA) and the Ontario Provincial Police (OPP)-led Provincial Auto Theft and Towing (PATT) Team announced the results of Project CHICKADEE, which targeted an organized criminal organization involved in large-scale auto theft, illegal exportation, and related money laundering. The investigation, which began in August 2023 and extended internationally, resulted in the recovery of 306 stolen vehicles—valued at approximately $25 million—destined for foreign markets, including the Middle East and West Africa. Authorities executed multiple search warrants across Ontario and Quebec, seized $190,000 CAD, $32,000 USD, three firearms, key programming devices, and extensive shipping documentation. Twenty individuals were charged with 134 offences under the Criminal Code, Customs Act, and Cannabis Act, including charges associated with freight forwarding companies. CBSA, FINTRAC, and municipal police agencies participated, with evidentiary material including 13 vehicles, numerous licence plates, and electronic devices. This development signals increased law enforcement attention on vehicle theft supply chains and export practices.

Sources: www.canada.ca

Federal Consultation Opens on Industrial Carbon Pricing Benchmark

Environment and Climate Change Canada has launched an engagement process on changes to the national industrial carbon pricing benchmark. This consultation is intended to support potential tightening of minimum stringency standards for provincial and territorial industrial carbon pricing systems, with new criteria expected in 2026. The government notes that the benchmark is a key pillar of the Climate Competitiveness Strategy, intended to provide certainty for decarbonization investments while maintaining competitiveness for Canadian industries. The move follows Policy commitments in Budget 2025 and is expected to inform adjustments that aim to harmonize carbon market systems across jurisdictions and ensure industrial emitters face comparable requirements regardless of region.

Sources: www.canada.ca

Canadian International Trade Tribunal Renews Dumping Order on Hot-Rolled Carbon Steel Plate

On December 17, the Canadian International Trade Tribunal (CITT) continued its order maintaining anti-dumping duties on hot-rolled carbon steel plate from Brazil, Denmark, Indonesia, Italy, Japan, and Korea. The expiry review determined that removal of the order would likely cause injury to domestic producers. Canada Border Services Agency will maintain the associated duties. The order, first implemented in 2020, impacts automotive supply chains that utilize imported steel products covered by the tariff measures.

Sources: www.canada.ca

Federal Investments Announced for Manitoba Heavy Equipment and Vehicle Manufacturing

Prairies Economic Development Canada, along with the Province of Manitoba and private sector partners, announced a $3.3 million federal investment to develop an Innovation Garage at RRC Polytech's Vehicle Technology Centre. The funding supports establishment of industrial research and development space, a microgrid lab focused on EV infrastructure, and hydrogen and fuel cell labs. The project is designed to enhance collaboration among students, manufacturers, and SMEs, facilitating technology adoption and industrial scale-up in the heavy-duty vehicle sector. Manitoba's heavy equipment and vehicle cluster exports to over 80 countries and will benefit from expanded research and advanced manufacturing capabilities.

Sources: www.canada.ca

Study Launched on Battery Electric Bus Performance

On December 19, Housing, Infrastructure and Communities Canada, the Canadian Urban Transit Research & Innovation Consortium (CUTRIC), and the Association de l'industrie électrique du Québec announced a $1.2 million joint investment to support a comprehensive study on battery electric bus implementation across Canadian transit agencies. The assessment will analyze battery degradation, charger performance, and diesel-to-electric power conversion. Transit agencies will gain access to tools and data to support decision-making as they transition conventional fleets towards electric platforms.

Sources: www.canada.ca

Finance Canada Appoints Canadian Climate Institute to Lead 'Made-in-Canada' Sustainable Investment Guidelines

On December 18, the Department of Finance Canada named the Canadian Climate Institute as the organization to develop national sustainable investment guidelines (taxonomy) with Business Future Pathways. The guidelines are intended as a voluntary market tool to help market participants distinguish 'green' and 'transition' investments based on science-based criteria, potentially affecting capital flows and reporting for automotive projects tied to decarbonization and EV production. The first three priority sectors for the taxonomy are to be finalized by the end of 2026.

Sources: www.canada.ca

Federal Investment in Manitoba Heavy Equipment Vehicle Sector Announced

Federal support for Manitoba’s heavy equipment and vehicle manufacturing sector was announced by Minister Eleanor Olszewski on December 16. The event, held at RRC Polytech’s Vehicle Technology & Energy Centre, marked the commitment of additional funds to strengthen manufacturing capabilities in trucks, buses, and related equipment.

Sources: www.canada.ca

New Motor Vehicle Registrations Stable in Q3

Statistics Canada reported that total new motor vehicle registrations in the third quarter of 2025 totaled 484,415 units, a modest increase of 0.2% over the same period in 2024. This was offset by a decline of 10.6% relative to the previous quarter, illustrating continued volatility in new vehicle demand.

Sources: www.statcan.gc.ca

Environmental and Clean Technology Products Sector GDP Declined in 2024

According to StatsCan, the GDP generated by Canada’s environmental and clean technology products sector decreased by 1.1% in 2024 to $70 billion. Gains in Nunavut, Saskatchewan, Nova Scotia, and Alberta were countered by broader national declines. For reference, the overall GDP grew by 1.9% in 2024, slower than the previous year.

Sources: www.statcan.gc.ca

Canadian Manufacturing Revenue Edged Down in 2024

Statistics Canada’s Annual Survey of Manufacturing Industries showed that total revenue in the Canadian manufacturing sector fell by 0.9% in 2024, totaling $931.2 billion. Manufacturers in the auto sector contributed to the decline amid challenging market conditions.

Sources: www.statcan.gc.ca

Monthly Manufacturing Sales Contracted in October

StatsCan's Monthly Survey of Manufacturing for October 2025 recorded a 1% decrease in sales, attributed to weaker performance in the chemical, wood product, and transportation equipment subsectors.

Sources: www.statcan.gc.ca

Canadian Provincial Government News

Ontario Announces Funding for Companies Affected by US Tariffs

Ontario will invest $16.5 million through the Ontario Together Trade Fund to assist businesses impacted by U.S. tariffs. Recipients include Aisin Canada, ArcelorMittal Tailored Blanks, and Burnco Manufacturing, among others.

Sources: news.ontario.ca

BC Sets 2027 for New Add-On Insurance Licensing for Vehicle Dealers

British Columbia introduced new licensing rules for businesses, including motor vehicle dealers, selling add-on insurance. The restricted insurance-agent license takes effect January 1, 2027, with a three-month transition period.

Sources: news.gov.bc.ca

Ontario Publishes Draft Regulation to Advance Mutual Recognition of Goods and Services

Ontario is taking public feedback on a draft regulation under the Free Trade and Mobility Act to enable mutual recognition of goods and services with other Canadian jurisdictions, setting the foundation for reciprocal market access and reduced regulatory overlap.

Sources: news.ontario.ca

Québec Announces Joint Cap-and-Trade Auction with California for February 2026

The next Québec–California joint carbon market auction will be held February 18, 2026, with application submissions accepted until January 20, 2026.

Sources: www.quebec.ca

Quebec Publishes Updates to Road Works Standards and Contractual Documents

Transports et Mobilité durable Québec released updated standards, general specifications, and guides for road works, signage, materials, and infrastructure services.

Sources: www.quebec.ca

Government Consultations

Federal Consultation on Driving Effective Carbon Markets

Environment and Climate Change Canada is seeking feedback on a discussion paper relating to improvements and flexibility in provincial and territorial system design for carbon markets. Consultation runs through January 30, 2026.

Sources: www.canada.ca

What We're Reading This Week

• EU moves to ease 2035 ban on internal combustion cars as auto industry faces headwinds: Reporting on the EU’s approach to its 2035 combustion engine ban and industry reactions.
• EU to Abandon Combustion Engine Ban in Win For Carmakers: Coverage of policy shifts in the European automotive regulation landscape.
• Inside the Detroit warehouse where America's 'fast and furious' tariffs are enforced: A feature on U.S. automotive tariff enforcement at the Canada-U.S. border.
• UK Left Out of Step With EU's Reprieve for Combustion Engine: The UK’s differing stance on phasing out combustion engine vehicles after recent EU moves.
• Europe Eases Combustion Engine Ban to Help Ailing Industry: Analysis of current challenges for European carmakers.
• Opinion: Is Canada really stepping back from electric vehicles?: Opinion piece examining the trajectory of Canada’s EV policies.
• Volkswagen Budget Cuts Force Battery Unit to Seek External Funds: Report on Volkswagen’s financial strategy for its battery division.
• The ultimate cars for parents: A guide to aspirational super-wagons: Feature on high-performance family vehicles.

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