This is a European vehicle. If you bring a car into Canada that is non-conforming to safety and emissions standards, you have to convince the customs guys that you know how to convert it - and have the money to do so - or you risk having the car impounded until you come up with a decent plan of attack.

My guess is that this car was impounded when the owner realized that they would have to do things like custom fabricate bumpers, install daytime running lights, side marker lights etc etc.

Thankfully older cars are exempt and most US cars meet the regs with no or minor mods.