A coalition of Ontario mayors from cities with deep ties to the automotive sector is urging the federal government to withdraw its mandatory electric vehicle (EV) sales targets, warning the policy could devastate local economies and undercut Canada’s manufacturing competitiveness.
The group, known as the Auto Mayors, represents 48 municipalities, including Barrie, Oakville, Windsor, Cambridge and Toronto.
In a letter addressed to Prime Minister Mark Carney, they argue that current EV mandates could trigger plant closures, threaten tens of thousands of jobs, and drive away future investment.
At the heart of their concern are federal regulations requiring automakers to ensure 20 per cent of all new vehicles sold by 2026 are zero-emission, powered by battery, hydrogen fuel cell, or plug-in hybrid technology. That threshold rises to 60 per cent by 2030 and 100 per cent by 2035. Manufacturers who fall short must purchase credits from competitors or reduce the number of internal combustion vehicles they sell.
Oakville Mayor Rob Burton, who is the chair of the group, said these rules are out of sync with market realities and risk creating an economic crisis for Ontario’s auto towns.
“If Canada doesn’t align its policies with the rest of North America, we’re going to do more damage to our own auto sector than anything Donald Trump might threaten through trade measures,” Burton said.
Recent signals from the industry have reinforced the group’s alarm. Honda recently paused its $15-billion EV and battery plant plans in Ontario. Stellantis has delayed the rollout of its electric Dodge Charger at its Windsor facility, and Ford abandoned its proposed EV line in Oakville in favour of gasoline-powered trucks. These setbacks come amid a cooling in EV demand, especially after the expiration of key U.S. consumer incentives.
According to Statistics Canada, electric vehicles accounted for just under eight per cent of new car sales in May, a sharp drop of more than 30 per cent from the year before. Automakers and dealers attribute the decline to Ottawa’s lapsed purchase incentives, which the federal government has promised to reinstate, though details remain sparse. In the meantime, the uncertainty has caused many consumers to hold off.
The Auto Mayors say that instead of mandates, the federal government should promote electric vehicle uptake using “market-based strategies” developed in consultation with the auto industry.
“The automotive sector is a cornerstone of both innovation and employment in our cities,” the letter reads. “We can’t afford to undermine it with rigid and premature regulations.”
The mayors also warned that the knock-on effects of losing even one major assembly plant would ripple across hundreds of parts suppliers concentrated in Southwestern Ontario, where the automotive supply chain remains one of the province’s largest economic engines.
Ontario currently hosts manufacturing operations from global auto giants including Ford, Stellantis, General Motors, Toyota and Honda.
The federal government’s zero-emission targets are modelled on similar frameworks in U.S. states such as California, which requires 35 per cent of vehicles sold by next year to be electric. But even there, automakers are struggling to meet targets, and industry pushback is mounting.
The Prime Minister’s Office did not respond to a request for comment on the mayors’ letter by publication time.
