July 17, 2025 · 0 Comments
Mayors of towns in the region whose local economy is directly impacted by the auto industry have called on the federal government to include non-plug-in vehicles in the Canadian Zero Emission Vehicle (ZEV) mandate.
This mandate requires all new vehicles to be battery electric vehicles, plug-in hybrid vehicles, or hydrogen fuel cell vehicles by 2035.
By not including non-plug-in vehicles, the mayors say the mandate is excluding a major share of the auto market.
The mayors have sent a letter to Prime Minister Mark Carney, as well as several federal ministers, with a request to include non-plug-in vehicles.
The letter references the Honda plant in Alliston directly and the impact it has on the local economy.
“For over 40 years, Honda has been a valued partner and major employer to New Tecumseth, contributing significantly to our community as well as the local and national economy,” the letter states. “Honda’s manufacturing facility employs around 4,200 direct and supports approximately 30,000 in-direct well‐paying jobs. The company’s continued investment in innovation and sustainability strengthens our region’s economic resilience and positions us for long‐term growth. Beyond New Tecumseth, Honda’s exceptional impact extends across Simcoe County, supporting and growing regional supply chains, parts manufacturing, infrastructure development, and workforce training initiatives.”
The recent imposition of U.S. tariffs on Canadian-made vehicles has contributed to a reduction in Canada’s Electric Vehicle (EV) sector. This has resulted in Honda delaying its $15 billion EV and battery plant project in New Tecumseth for at least two years.
As most ZEV-eligible vehicles have been imported, the mandate is expected to further displace Canadian-made vehicles.
The Simcoe County mayors’ letter states:
“With the increasing targets, the mandate is expected to further displace Canadian‐made vehicles, missing key opportunities to bolster domestic manufacturing. Additionally, we’ve heard from auto suppliers with U.S.-based affiliates that production is increasingly shifting from Canada to the United States, resulting in reduced investment and job losses here at home.”
As a result, the mayors are urging the federal government to include non-plug-in vehicles in the mandate as “fully eligible vehicles toward achieving the targets. The non-plug-in hybrids should earn a full compliance credit and should not be treated differently from the other eligible vehicles under the mandate. This will support Canadian auto manufacturers while providing Canadian consumers an “on‐ramp” away from traditional gas‐powered vehicles and would serve as a critical bridge to the long‐term goal of full electrification.”
The letter was issued by New Tecumseth Mayor Richard Norcross, Midland Mayor Bill Gordon, Penetanguishene Mayor Doug Rawson, Bradford West Gwillimbury Mayor James Leduc, Clearview Mayor Doug Measures, Ramara Mayor Basil Clarke, Collingwood Mayor Yvonne Hamil, and Innisfil Mayor Lynn Dollin.