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]

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