Automakers win: Canada dropping ecoAUTO rebate program
After a controversial two-year run, the Canadian government has announced their ecoAUTO rebate program will be ended next year. The ecoAUTO plan offered a $1000 to $2000 CDN rebate to owners of new cars that consumed gas at a rate less than 6.5 l/100 km. Although the ambitious plan sounded like an excellent way to reward drivers of frugal transportation, the mathematical line in the sand snuffed those whose vehicles were still very efficient, yet just under the threshold.
One of the most vocal protests came from Honda. Unfortunately for them, their Canadian-market Fit was "unfit" for the rebate, yet the competing Toyota Yaris was approved. It didn't take long for the Japanese automaker to call out the Ottawa government in protest. Honda took their message public, and even offered their own version of the rebate to match the government's offer.
To mend the wounds of this green-rebate-gone-awry, the Canadian government has pledged $250 million to the auto industry for the development and research of environmentally-friendly technologies.
[Source: Autoblog Green]
Reader Comments (Page 1 of 1)
Jeff Bank 6:16PM (3/02/2008)
I bet Toyota is pissed at Honda now. Rebates for no one!
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nonag34 6:26PM (3/02/2008)
Damn! I missed the boat.... Was waiting for the 2009 VW Diesel and get the rebate to compensate for the extra $, looks like VW Canada missed the boat too.
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Steve 6:32PM (3/02/2008)
It is true that the Fit and Civic didn't qualify for the program last year - I think they were off by .1 l/100km. They were retooled or something so that they are just under and qualify for 2008 - promoted on the Honda site.
http://www.tc.gc.ca/programs/environment/ecotransport/2008ecoautoeligibility.htm
If Honda was still against the program it would probably be because the Pilot doesn't qualify but Toyota's (and others) hybrid SUVs do.
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Unk 7:15PM (3/02/2008)
It would have made a lot more sense to have a simple sliding scale instead of an all or nothing arrangement. This way they could reward the most frugal vehicles even more yet still give modestly frugal vehicles some incentives. Maybe even more people would buy an I4 accord over the V6 for example.
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Troy 8:25PM (3/02/2008)
I guess that the up to $4,000 tax for purchasing a gas guzzler is sticking around though?
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SPG 8:34PM (3/02/2008)
Need you even ask?
psarhjinian 8:25PM (3/02/2008)
Well, this sucks. ecoAuto was actually working:
* It encouraged the purchase of fuel efficient cars
* It encouraged manufacturers to make thier cars more efficient.
It had a few boondoggles (the same as CAFE: the light truck exemption that articially inflates the sales of heavy cars, and the ethanol exemption, which is a sop to agribusiness) but overall it was a good thing.
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vdk 8:56PM (3/02/2008)
bullcrap.... the very last good thing in Canada is put down... way to go dudes, way to go... really
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stratojet 9:25PM (3/02/2008)
This program was done without any serious study. The employees who have put together this proposition did not made a "What if"scenario. So what the program did in fact is shift many millions $$ from all manufacturers (Honda Mazda included) and direct them to Toyota, especialy the Yaris.
So the program was just and excuse for the government to try to look green and get reelected. Toyota does not need to be susidized by the Canadian citizens.
The funny thinh is that they stop it not because of GM or Ford, but because of Honda . How ironic.
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Kowell 10:01PM (3/02/2008)
Your Republican....not wait that's not right.... conservative government at work.....
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Rob S 11:02PM (3/02/2008)
They aren't stopping the rebate programming specifically because of Honda but more so because they realized that issues like Honda's will continually arise. There is also a second reason which I'll get to. The $4000 gas-guzzler fee still stands which completely confirms that the whole point was to make money.
The other reason why it was cancelled was because it was negatively affecting the automotive industry here in Canada. The government is spending $250 million which it will give to companies that operate factories in Canada to help create greener cars. Toyota and Honda make cars that are economical in Canada but as for the North American Three, every single vehicle they make in Canada is either an SUV, truck, or V6+.
Chrysler:
* 300
* Dodge Charger
* Dodge Magnum
* Town & Country
* Caravan/Pacifica
Ford:
* Ford Edge
* Ford Crown Victoria (Includes livery and Police Interceptor models)
* Mercury Grand Marquis
* Lincoln MKX
GM:
* Buick Allure and Buick LaCrosse
* Chevrolet Equinox
* Chevrolet Impala
* Chevrolet Monte Carlo
* Chevrolet Silverado and GMC Sierra
* Pontiac Grand Prix
* Pontiac Montana SV6
* Pontiac Torrent
Other than maybe the Torrent they are all large vehicles and their fuel economy doesn't come close to cars like the Civic or Corolla. The government is saying they are giving $250 million to help the companies create greener cars. What they are really doing is trying to help the Canadian automotive industry in general. They realize the car industry employs more people than any other industry and so they are doing what they can to keep that going. It has nothing to do with making greener cars. It's just that's what people are buying now.
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Sutibu 1:17AM (3/03/2008)
Ummm..."will be ended by"? Would "will end by" be just a little more grammatically correct?
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donnyo 1:16PM (3/03/2008)
There's always more than meets the eye.
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falloutagain 6:02PM (3/04/2008)
i'm sure there lots more to this story but it still seems like Honda messed it up for everyone.
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tickedoff auto recycler 11:11PM (6/05/2009)
a pensioner who got all the ok's because I drove a 90 festiva, bought a 08 chev cobalt, then took festiva to scrap yard, expecting to recieve $750.00. Scap yard did not sign all the papers, so I am now told I get nothing for my festiva and I can just figger out for myself how to come up with the other $700.00 I owe on new car, either that or return it. I have worked hard alll my life raised two kids on my own, always paid for insulin to keep myself alive myself and am now told at 69 yrs old, find a job because your government can't be trusted to keep it's promises. THANKS A LOT!
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