BC election pivotal for new vehicle sector
As you read this column, British Columbia will be nearing the end of a provincial election campaign during which BC’s New Car Dealers (NCDA) highlighted a number of issues of concern to our sector — some of which mirror those facing other jurisdictions across the country.
In advance of the writ being dropped, the NCDA developed an election kit to ensure new car and truck dealerships in more than 400 communities across this province who employ some 30,000 British Columbians, had a consistent basis from which to be heard and seek out commitments from political parties and local candidates.
An election campaign, whether it be local, provincial or federal is not something our association and dealer members take lightly. In every respect, it serves as an opportunity to encourage candidates to work with us and create win-win approaches that support our sector and the economy, while reinforcing the national leadership role of our members — including transitioning consumers to zero emission vehicles.
Our collective message to would-be MLAs and their political parties is that through action, we can ensure a brighter future for new car dealers, staff and communities in which they operate.
Among the key issues and areas of concern we have highlighted during the campaign:
- BC’s New Car Luxury Tax has not kept pace with inflation. Today, the average cost of a new vehicle is $66,000, while the threshold for BC’s Luxury Tax taking effect is $55,000. The additional cost is pushing the price of a new vehicle beyond the reach of many people;
- The CleanBC Go Electric Passenger Vehicle Rebate Program makes zero emission vehicles more affordable and has proven to positively influence consumer purchase decision-making, helping BC reach nation-leading ZEV adoption results (on a per capita basis). Recent program changes, however, have had the effect of 75 per cent of vehicles previously eligible for a provincial rebate, being removed;
- BC’s mandated annual sales targets for Zero Emission Vehicles (ZEVs) are accompanied by significant financial penalties (up to $20,000 per vehicle) when arbitrary targets aren’t met.
- This policy requires a level of flexibility in light of recent changes to the CleanBC Go Electric Passenger Vehicle Rebate Program (as noted above), a softening in the ZEV market, and the fact that while early adopters didn’t require a great deal of convincing, the broader consumer population will — because of price, range anxiety, and access to convenient charging infrastructure — especially if they live in rural or remote areas.
- Without a policy course-correction from our next government, it can be expected that OEMs will reduce the supply of all vehicles to avoid penalties, driving prices up and passing any added costs on to consumers, putting the price of all vehicles out of reach for the average consumer;
- Ensuring Zero Emission Vehicle (ZEV) drivers have access to reliable fast charging infrastructure where they live, work and travel improves the practicality of choosing a ZEV. BC’s current fast charging infrastructure is incomplete, particularly outside of our major centres, which means ZEVs are not a viable option for many British Columbians; and
- BC’s automotive sector is facing a wave of retirements in the coming decade and there is a lack of programs and spaces in post-secondary institutions to train the next generation of industry workers. BC’s Job Fund can help expand programs and spaces to meet this demand, but this issue requires urgency.
Our collective message to would-be MLAs and their political parties is that through action, we can ensure a brighter future for new car dealers, staff and communities in which they operate.
We are fortunate to live in a province and country where we are free to cast a democratic vote. Regardless of one’s political persuasion, we all have a stake in the future of our province, and the NCDA has encouraged all British Columbians of voting age to be an active participant in our democratic process.
