Canada's eco-Auto program backfiring, pickup sales increase

A new program to urge Canadian drivers to downsize to more fuel-efficient vehicles from large gas-guzzling SUVs has had the unwarranted effect of lifting sales of pickup trucks. The new ecoAUTO Rebate Program offers a rebate ranging from $1,000 to $2,000 for people who pick up certain fuel-efficient vehicle, but slaps a $4,000 excise tax on fuel-heavy SUVs and sports cars.

Of course, there are many out there who are forced to use heavy pickups for their businesses, so to appease them, the Government exempted the excise on pickups. According to research released by DesRosiers Automotive Consultants, the program has been driving up sales of new pickup trucks since its introduction in March as a result. New car-buyers who previously wanted an SUV are now switching to pickup models. Take Ford's Ranger, sales are up 18% for the first seven months of the year, and that trucklet ain't exactly a spring chicken.

Things aren't expected to change anytime soon because the Government isn't about to admit it made a mistake. Now, where have we heard this before?

[Source: The Truth About Cars]

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