This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for car manufacturers, parts suppliers, car dealers, rental companies, and importers/exporters in the automotive industry. Once a week, 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. Also consider subscribing to our Automotive - Washington edition covering critical GR news south of the border.

Dates: 2026-02-22 to 2026-02-28

📋 In This Week's Newsletter

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

Federal Government News

Government of Canada Initiates Consultation on Automotive Remission Framework

On February 27, 2026, Minister François-Philippe Champagne, Department of Finance Canada, announced the commencement of consultations aimed at strengthening Canada’s automotive remission framework. The consultation addresses possible changes to the tariff remission regime on surtaxes for passenger vehicles imported from the U.S., in an effort to further incentivize domestic production and investment. Stakeholders such as vehicle assemblers, parts producers, importers, unions, and workers’ associations have until April 13, 2026 to submit feedback. The consultations form part of the Prime Minister's February 2026 auto sector transformation strategy, which focuses on promoting made-in-Canada vehicles, integrating advanced technologies, and bolstering Canada’s global status in EV production. The initiative seeks to improve supply chain resilience and align trade policy with industrial and workforce priorities.

Sources: www.canada.ca

Canada and Germany Sign Automotive Sector Cooperation Declaration

Minister Mélanie Joly, representing Innovation, Science and Economic Development Canada, signed a joint declaration in Berlin on February 24, 2026, with German Economic Affairs Minister Katherina Reiche. The agreement increases bilateral collaboration focused on the auto sector, battery manufacturing, and the critical minerals supply chain. There is particular emphasis on hydrogen-powered and electric vehicles, as well as the expansion of bilateral exports. The declaration is positioned within the framework of Canada’s recent national automotive strategy. The agreement also contemplates reinforced supply chain linkages and supports the clean energy transition. Canadian and German automotive and mobility companies are expected to benefit from the framework, which is intended to strengthen economic resilience and investment within both countries.

Sources: www.canada.ca

Wholesale Motor Vehicle Parts Sales Slip in Early January Estimate

Statistics Canada’s early estimate for January wholesale trade, released February 25, 2026, indicates a 0.6% decline in sales (excluding petroleum and related products), with the dip attributed chiefly to lower volumes in the motor vehicle, motor vehicle parts, and accessories subsector. The advance indicator is intended as a preliminary snapshot and may be subject to revision as additional information becomes available. These figures follow a period of volatility in both domestic demand and inventories for vehicle parts distribution.

Sources: www.statcan.gc.ca

Manufacturing Sales for Transportation Equipment and Machinery Down

Statistics Canada reported on February 24, 2026, that preliminary results for January 2026 show a 3.3% decrease in overall manufacturing sales nationwide, with transportation equipment and machinery manufacturing accounting for the largest share of the reduction. These advance estimates provide an early view of sector-wide production shifts, especially in vehicle assembly and components output, and reflect inventory and demand fluctuations during the reporting month.

Sources: www.statcan.gc.ca

Refined Petroleum Product Data: January 2026

Statistics Canada has released data on the production and inventories of refined petroleum products for January 2026. The dataset is available upon request and provides detailed breakdowns useful for suppliers and industry observers tracking fuel flows and storage across Canada.

Sources: www.statcan.gc.ca

Machinery and Equipment Price Index Published for December 2025

The Machinery and Equipment Price Index for December 2025 was issued by Statistics Canada on February 26, 2026. This measure, based on 2016=100, presents the latest quarterly price movements for capital equipment, including categories used by vehicle manufacturers and parts suppliers.

Sources: www.statcan.gc.ca

Treasury Board Reports Progress on Federal Fleet GHG Reductions

On February 23, 2026, President of the Treasury Board Shafqat Ali reported that the Government of Canada has reduced greenhouse gas emissions from real property operations and conventional vehicle fleets by 42.5% as of March 31, 2025, relative to a 2005–06 baseline. This surpasses the 2025 government target of a 40% reduction. Additionally, 25 new emission-reduction projects received support under the Greening Government Fund, including pilot programs for low-carbon vehicle fuels and recycling initiatives. More than $80 million in grants have helped fund over 130 projects since 2019.

Sources: www.canada.ca

Provincial Government News

Nova Scotia Introduces Financial Measures Act with New EV, Hybrid Levies

Nova Scotia’s 2026 Financial Measures Act, tabled February 25, creates a biennial $500 levy on electric vehicles and $250 on hybrid passenger vehicles starting October 2026, along with several tax changes and harmonization measures.

Sources: news.novascotia.ca

Québec Carbon Market Auction Raises $295 Million for Green Fund

The February 18 Québec–California carbon market auction produced $295 million in revenue for Québec, to be directed to the Electrification and Climate Change Fund supporting the province’s 2030 Plan for a Green Economy.

Sources: www.quebec.ca

Alberta Budget 2026 Funds Road Infrastructure, Skills Training, and Energy Development

Alberta’s 2026 budget, announced February 26, allocates $4.6 billion over three years for road and bridge networks and includes new funds for skills training, advanced education, and initial work on a West Coast oil pipeline proposal.

Sources: www.alberta.ca

Government Consultations

What We're Reading This Week

• Transport Canada knew EV rebates were running out months before telling public, documents suggest: Reports raise questions about timelines in communicating the status of federal EV incentives.
• Feds knew EV rebates were running out months before telling public, documents suggest: News analysis of internal government communication on the depletion of electric vehicle rebate funding.
• Canada's defence announcement a new opportunity for Windsor manufacturers: Windsor manufacturers explore new contracts as Ottawa shifts procurement priorities.
• Giant Containers Retained to Design, Deliver New Modular Structures for World-Leading EV Company: A supplier secured a contract for modular structures aligned with EV industry facility needs.
• N.S. makes electric vehicle purchases more expensive as Ottawa incentivizes them: Overview of provincial and federal policy divergence on electric vehicle pricing.
• Winter car troubles: Navigating the challenges of cold-weather driving: Practitioner advice for Canadian drivers facing extreme winter vehicle challenges.
• CUSMA a ‘critical condition’ for increased Japanese auto manufacturing in Canada: Ambassador: Japanese ambassador links expanded manufacturing in Canada to CUSMA stability.
• Electric Vehicle Association of Atlantic Canada reacts to new N.S. tax: EV industry stakeholders respond to the province’s new taxation plan.
• The effect on the Canadian automotive market after Trump’s first year in office: Review of shifts in the auto sector’s cross-border trade after political change.

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