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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.

The latest news on the Honda vs, the Canadian government issue has Honda Canada now hoping to tweak its Fit and Civic models to qualify for Canada's auto rebate program (the so-called ecoAuto program). The ecoAuto program is a bit like the U.S. gas guzzler tax combined with our incentives for hybrids. Honda hopes it can improve the mileage on these two cars just enough to earn the $1,000 CDN rebate offered to buyers of fuel efficient vehicles that use less than 6.5 liters/100km. Honda engineers