Two nations living – and driving – in harmony: With Americans and Canadians having long maintained the world’s lengthiest unfortified border, Canada is now actively “harmonizing” its automotive regulations with those of the U.S.
The auto industry accounts for more than $100 billion in business between Canada and the U.S., representing about 20 percent of the total trade being conducted between the two nations.
“Better-aligned product regulations make good business and public policy sense, which has led to a high level of cooperation between Canadian and U.S. regulators on the implementation of some of the most advanced stringent vehicle safety and environmental regulations in the world,” said Mark Nantais, president of the Canadian Vehicle Manufacturers Association (CVMA).
Seeking to “avoid the creation of new regulatory misalignments,” Nantais says “greater harmonization of product standards will reduce costs and make more advanced vehicle technologies more affordable for consumers.”
The Canadian government is intent on adopting Tier 3 pollution regulations harmonized with those developed by the U.S. Environmental Protection Agency (EPA). “These new emissions standards, when combined with Tier 3 ultra-low sulfur gasoline, will build on the significant reductions achieved to date by the automotive industry, most recently through Tier 2 standards harmonized across North America,” says Nantais.
“Since smog-related emissions are not constrained by international borders, harmonized Tier 3 emission regulations are an important first step, as Tier 3 ultra-low sulfur gasoline requirements will be needed to ensure these advanced emission control technologies will provide Canadians, like their U.S. counterparts, the same air quality improvements,” he points out.
“Harmonized standards with the EPA,” says Nantais, “is an approach which will ensure that new, more advanced technologies come to market more quickly with greater choice of products at more affordable prices for consumers by taking advantage of the economies of scale derived from the larger integrated market inherent in the North American automobile industry. And that ensures greater environmental benefits sooner.”
CVMA members include Chrysler Canada, Ford of Canada and General Motors of Canada. The membership collectively sells 48 percent of all Canadian vehicles and accounts for 65 percent of the total vehicle production. They operate five assembly plants along with engine and parts production facilities tied to more than 1,300 auto dealerships; 125,000 jobs are directly tied to vehicle production in Canada, according to Nantais. More than 500,000 jobs are directly or indirectly associated with vehicle manufacturing across the nation.
Attracting new investment
Combined with light duty vehicle greenhouse gas (GHG) standards for the 2011-2016 model-years, by 2025 the initiative will ultimately result in vehicles emitting roughly half of the greenhouse gas emissions as those that were introduced to Canadian roadways in 2010. “This regulation represents the most significant federal action ever taken to reduce vehicle GHG emissions and improve fuel economy. These standards will, in effect, double fuel economy over the time period,” Nantais says.
“The extent to which industry realizes significant cost reductions and efficiencies through harmonizing both safety and emission regulations and standards is a factor which will improve industry’s competitiveness, help it remain attractive for new investment and raise the likelihood of more job creation,” he continues.
“Standards harmonization means a product environment that respects certification to one set of regulatory requirements for both Canada and the U.S. that satisfies societal needs efficiently and effectively for both countries,” adds Nantais.
The progress being made “is welcome news for Canada’s air quality, public health and on-road light duty vehicles,” says David Adams, president of the Global Automakers of Canada (GAC).
For several years the GAC has been calling on the Canadian government to implement regulations requiring cleaner fuels, including the ultra-low sulfur gasoline. “While our members have dramatically reduced vehicle NOx (Nitrogen oxide) and volatile organic compound (VOC) emissions by 99 percent compared to the pre-control period of the late 1960s and ‘70s, we are ready to go further,” he says.
“Improving gasoline quality by lowering sulfur levels at the pump has immediate benefits for every gasoline-powered vehicle in Canada, resulting lower SOx (sulfur oxides) emissions and an increase in catalytic converter efficiency, which further reduces NOx emissions,” Adams said.
Fifteen international automakers have Canadian operations that belong to the GAC: BMW, Honda, Hyundai, Jaguar Land Rover, Kia, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Porsche, Subaru, Suzuki, Toyota, Volkswagen and Volvo.
“GAC advocates for sound public policy to support a competitive and sustainable Canadian automotive market,” says Adams. “The members are committed to meeting the mobility needs of Canadians by providing greater consumer choice, offering leading-edge safety and environmental technologies while eliminating unnecessary regulatory and trade barriers.”
From coast to coast, the membership’s direct and indirect employment figures include more than 77,000 Canadians involved with vehicle manufacturing, sales, distribution, parts, service, finance and head office operations.
Reducing trade barriers
“Our government is pleased to launch the next phase of the ecoTECHNOLOGY for Vehicles Program,” says Denis Lebel, the nation’s minister of Transport, Infrastructure and Communities. “This program will assess the safety and environmental performance of new vehicle technologies to ensure that innovations can be introduced in Canada in a safe and timely manner.”
The endeavor is a five-year, $38-million effort that proactively seeks to develop safety and environmental regulations as well as industry codes and standards, according to Lebel. “Test results will help align vehicle regulations in North America to reduce and prevent barriers to cross-border trade, lowering costs for business and consumers and supporting jobs and economic growth,” he adds.
“These initiatives,” says Lebel, “will help Canada achieve its economy-wide target of reducing greenhouse gas emissions by 17 percent from 2005 levels by 2020.”
An ecoTECHNOLOGY study released earlier this year addressed the safety and environmental performance of low rolling resistance tires when affixed to big rig trucks driving in snowy weather.
“During public consultations for the proposed regulations, which are expected to come into force for 2014 model years and beyond, some industry stakeholders expressed concern that low rolling resistance tires may have reduced traction performance in Canadian winter conditions, particularly when equipped on Class 8 long-haul heavy trucks,” Lebel reports.
The results of ecoTECHNOLOGY’s tire testing “demonstrated that the current generation of low rolling resistance tires offers a similar level of snow traction performance as conventional tires while reducing fuel consumption and emissions,” says Lebel. “This study will help support the uptake of low rolling resistance tire technology by the Canadian trucking industry – maintaining road safety and benefitting the environment.”
A package of recently enacted standards includes a requirement that new cars come equipped with a lap and shoulder safety belt for the rear center seat. Automakers have until Sept. 1, 2015 to comply; older vehicles will not have to be retrofitted.
“Ensuring the safety of Canadian families is very important to our government,” Lebel says. “That’s why our government is enhancing vehicle safety standards to better protect the traveling public.”
“Canadians expect their cars to be built to the highest safety standards, so the revisions to this regulation will ensure not only enhanced safety protection for occupants in frontal crashes, it will also more closely align both Canadian and U.S. vehicle standards, making advanced safety technologies more readily available and affordable,” says the CVMA’s Nantais.
“The government is to be commended for its commitment to ensuring that Canada’s regulatory framework keeps pace with industry safety practices and technologies for the benefit of Canadians, and for their commitment to aligning Canadian safety regulations with major global standards,” concurs Adams.
Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.
