After much anticipation, the federal government finally released its fall economic statement for 2020, which offers some good news for automotive retailers in Canada — particularly where zero-emission vehicles (ZEV) are concerned.
Chrystia Freeland, Deputy Prime Minister and Minister of Finance, released the 237-page Supporting Canadians and Fighting COVID-19 plan on November 30. The report includes a section that includes funding of $287 million to cover the “Incentives for Zero-Emission Vehicles Program Top-Up.”
In an interview with Canadian auto dealer, Oumar Dicko, Chief Economist of the Canadian Automobile Dealers Association (CADA) said they were pleased that the government allocated more funding to the ZEV incentive program.
“This was a highly successful program and it worked well for Canadians, dealers, and for the economy,” said Dicko. “The program was running out of money because there was high uptake, so we’re pleased that the government listened to the industry and allocated more funding to this highly successful program.”
The plan also includes grants to help up to 700,000 Canadians make energy-efficient upgrades to their homes, along with investments in building ZEV charging stations where people live, work, and travel.
Like CADA, the Canadian Vehicle Manufacturers’ Association (CVMA) also welcomed the additional investments in ZEV charging infrastructure and the incentives for the ZEV program as good news.
“Boosting the adoption of ZEVs in Canada requires a combination of financial incentives, accessible charging infrastructure and more education about electric vehicles,” said Brian Kingston, President & CEO of the CVMA in a statement.
He also urged the federal government to introduce a vehicle scrappage program “to accelerate the adoption of a full range of newer vehicles that provide increased fuel efficiency and safety.”
CADA has also been pushing for a vehicle scrappage program. According to Dicko, the association’s next steps will focus on continuing to work with the government to ensure that dealers and businesses continue to be supported throughout this crisis, while also working with them on the way forward on the recovery program — and that includes pushing for a national scrappage program.
“It’s good news that the government allocated $100 billion over the next three years to support the economy during the recovery, and we will continue to work with the government to ensure that the auto industry is allocated some funds,” said Dicko.
