The U.S. is moving forward with an ambitious plan aimed at shifting its auto industry toward making more electric vehicles — and Canadian companies could stand to benefit.

Washington

The U.S. government has announced a new set of pollution standards targeting the automotive industry, emphasizing a shift towards the production of electric vehicles (EVs). This move is part of a broader ambition to mitigate pollution and foster sustainable practices within the sector. The introduction of these standards signals a significant change in regulatory approach, aiming to encourage automakers to increase their EV offerings.

Canadian companies are positioned to potentially gain from these new U.S. pollution standards. The interconnected nature of the auto industry between the U.S. and Canada suggests that Canadian firms involved in the EV market could see increased demand for their products and services. This development underscores the cross-border economic impacts of national policies geared toward environmental sustainability and clean technology advancement.



U.S. rolls out new pollution standards for auto industry

U.S. officials call it the most ambitious plan ever to cut carbon emissions. Today we're setting new pollution standards for cars and trucks. Rules that will force automakers to build cleaner cars. To meet the limits by 2032, 56% of new vehicle sales could be electric, 13% hybrid. But since lower emissions is the point, car makers that produce cleaner gas-powered vehicles could make more of them. This really sends a signal throughout the automotive supply chain that electrification is here to stay and that this is the path forward. The regulations aren't as aggressive as an earlier proposal, giving companies more time to transition their fleets. But advocates say ultimately they will boost EV purchases, which made up less than 8% of total U.S. sales last year. And that just creates a snowball effect that I think we'll just continue to see further adoption. A trend that may offer opportunities for Canada's auto sector. 53% of the parts made in Canada go into those cars that get exported. So if an electric vehicle is sold in the U.S., that's good for us. This Vancouver startup makes power inverters that can be used in EVs and is looking to sell them south of the border. We have initiated conversations with a few manufacturers in the United States and hopefully the news today will help accelerate those conversations and open more doors for us. Still, EV sales growth across North America has slowed. At a time when Canada is also trying to reach challenging zero emission targets, the auto industry argues more needs to be done. To build out the charging infrastructure necessary, educate consumers about the technology and ultimately help make them more affordable with consumer purchase incentives. Because though car makers can offer electric options, it's consumers that will have to shift gears. Nisha Patel, CBC News, Toronto.

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Tel Aviv-Yafo

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Council of the City of Sydney

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Doha

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Geographe

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