The Chairman of Nissan Americas, Christian Meunier, affirms that more flexible Canadian standards would "open the door" to a new generation of compact, affordable vehicles available in European and Asian markets.
And that could help boost the bottom lines of automakers’ Canadian divisions. Unlike the United States market, which has little appetite for small cars, Canada has long demonstrated a strong interest in them. Meunier recalls the success of the Nissan Micra, sold from 2014 to 2019.
A certification problem
Canadian certification, which has been modeled for decades on American standards (FMVSS), limits what manufacturers currently can offer. As well, the volume of the Canadian market alone often does not justify the investment required to certify a separate model.
Growing pressure to move away from American model
With trade tensions between Ottawa and Washington persisting, several voices are calling for flexibility. Last spring, Tim Reuss, CEO of the Canadian Automobile Dealers Association (CADA), criticized Canada's approach, saying it is "too aligned" with the U.S. In his view, a vehicle approved to drive at high speeds on German highways, for example, would have no problem operating here.
Reuss's view has gained support over the months, notably from pro-EV (electric vehicle) groups.
Real political and commercial obstacles
Transport Canada has already warned that broadening the standards would require an amendment to the Motor Vehicle Safety Act. The department also raises concerns: international standards may not be suitable for road conditions in Canada, where temperature extremes, damaged roads and prolonged winter create unique requirements.
Risk of more tensions with U.S.
Automaker associations warn that decoupling the Canadian and American standards could create new tensions with Washington at a time when commercial ties are already fragile.
An interest shared by other manufacturers
Nissan is not the only carmaker to see an opportunity. In October, Edgar Estrada, President of Volkswagen Canada, stated that the manufacturer would be ready to import more of its European models if Canadian rules were broadened.
Like VW, Nissan has several popular models in Europe and Asia that never cross the Atlantic due to a lack of regulatory compatibility. According to Meunier, a legislative change would make it possible to offer the Canadian public more economical and versatile cars.
A pathway to greater automotive diversity
If Ottawa decides to ease its standards, Canada could finally gain access to a range of modern, safe and affordable small cars — models that meet the needs of a market quite different from that of the U.S.
According to Nissan and other manufacturers, the move would be timely in a market in which affordability is becoming the main concern for consumers.
