When the Canadian government announced its ecoAuto program a year ago, it was immediately controversial. By offering tax rebates to drivers who bought more cars with mileage above an specified level and applying extra taxes to thirstier vehicles, certain vehicles where left out in the cold. Setting arbitrary thresholds means that cars just above or below threshold might get comparable real world mileage but some buyers get the rebate while others don't. In this case, the Honda Fit was left out w
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.
We've all experienced the law of unintended consequences, and it has just struck again in Canada. Years ago a provision was put in US tax law that allowed businesses to deduct $25,000 for the purchase of trucks used for commercial reasons. Unfortunately this meant that many small and medium business owners ended up buying big SUVs for the business that ended being used for personal use.
Autoblog regulars will remember the ongoing feud between Honda Canada and the Canadian government. The conflict centers around Ottawa's new budget that contains the ecoAuto program, which offers between $1,000 and $2,500 rebates on certain fuel efficient vehicles and up to a $4,000 penalty on gas guzzlers. The Honda Fit, which is very popular in Canada, missed the cutoff for being eligible for a rebate because it consumes 6.6L of
The Canadian province of Ottawa government is learning the hard way that one does not mess with Honda Canada. We reported last month that the automaker was irritated its Fit just missed qualifying for a federal ecoAUTO rebate of $1,000 CDN that was established to promote the purchase of fuel efficient cars. The rebate applies to new cars that use less than 6.5 liters of gas for every 100 kilometers