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Canada to Allow ecoAuto Rebate Program to Expire
26 February 2008
Globe and Mail. Canada’s ecoAUTO Rebate program, which provided rebates of up to $2,000 to people buying the most fuel-efficient vehicles (earlier post), will be allowed to expire next year after its two-year term, per the recently released Canadian federal budget.
Canada’s beleaguered auto makers and other manufacturers found little solace in the new federal budget, as the government maintained its focus on debt reduction and delivered only a smattering of initiatives that one auto industry official declared “distressingly inadequate.”
The budget does extend a program of accelerated tax allowances for depreciation of new manufacturing machinery and equipment by three additional years, on top of the original two-year plan introduced in the 2007 budget, although both the length of the extension and its terms were less generous than many observers had hoped for. The government also pledged $250-million over five years to support research and development of greener vehicles, but the funds fell well short of what the auto industry felt was necessary to stimulate investment in such projects.
However, [Jim Stanford, economist with the Canadian Auto Workers union] said the Canadian auto industry will actually be happy to see the end of the green-car rebate program. “That program sounded good in spirit, but it was perverse in impact,” he said.
Domestic automakers saw it providing incentives to buy fuel-efficient foreign-made cars.
(A hat-tip to Darin at ecomodder!)
February 26, 2008 in Brief | Permalink | Comments (5) | TrackBack (0)
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Posted by: Neil | February 26, 2008 at 11:17 PM
"However, [Jim Stanford, economist with the Canadian Auto Workers union] said the Canadian auto industry will actually be happy to see the end of the green-car rebate program. “That program sounded good in spirit, but it was perverse in impact,” he said.
Domestic automakers saw it providing incentives to buy fuel-efficient foreign-made cars."
yes, it was perverse because it encouraged people to buy fuel-efficient cars. what?
with logic like this, no wonder Canada has one of the highest GHG per capita in the world.
Posted by: eric | February 27, 2008 at 04:31 AM
What the CAW doesn't mention is the money that Toyota and Honda pump into the Ontario economy.
Toyota- assembly plants in Cambridge and Woodstock
Honda- assembly plant in Alliston.
Those two companies do make fuel efficient vehicles and they are actually doing well in Canada, while Ford, GM and Chrysler are tanking due to overpaid CAW members.
Posted by: jc777 | February 27, 2008 at 08:27 AM
jc777: ... and poor choices by management over the last 40 years.
Posted by: Neil | February 27, 2008 at 09:22 AM
Harper likes it hot, to warm up his cold blood.
Posted by: Emphyrio | February 28, 2008 at 02:15 AM
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My first impression of the budget was quite positive (I like the idea of debt reduction over new spending), then I started looking into their idea of energy and environmental policy. Kill the rebate program for fuel efficient vehicles, encourage E85 (so much for corn flakes in the morning) and give money to American (Domestic?) car companies to build more SUVs. I didn't notice any help for ZENN (an actual Canadian electric car company)