Canada’s Minister of Transport Marc Garneau (left) and John White, CADA President and CEO (right).
ZEV details revealed, incentives offered
April 23rd, 2019
The federal government recently announced important details regarding its national Incentives for the Zero-Emission Vehicles (iZEV) Program, which will officially take effect on May 1, 2019. As of this date, Canadian consumers will be eligible for rebates of up to $5,000 on qualifying ZEV purchases under the government’s plan.
The announcement was made by Canada’s Minister of Transport Marc Garneau on April 17 in Montreal, Que. CADA has worked with the federal government and has pressed hard in Ottawa for the ZEV incentive program — along with all the details — to be implemented as quickly as possible, according to CADA Economist Oumar Dicko.
“We think it’s a step in the right direction, and we are encouraged by the government’s announcement today,” said Dicko, in an interview with CADA Newsline. “The whole industry including CADA has been pushing for a national ZEV strategy over the past few years, and the program announced by the government today will certainly increase the demand for zero-emission vehicles and make them more affordable for Canadians.”
The association consulted with the Prime Minister’s office and the Liberal Auto Caucus prior to and after the budget was released, regarding the ZEV incentive plan. CADA has also met on multiple occasions with senior officials from the department of Transport and Innovation, and has spoken directly to the Minister of Finance about the plan.
Mélanie Joly, Minister of Tourism, Official Languages and La Francophonie (left), and Canada’s Minister of Transport Marc Garneau (right).
The program, now set to officially take effect in May, is expected to serve as an incentive for consumers to renew their interest in purchasing ZEVs.
The government is proposing to invest $300 million over three years on the plan, offering a $5,000 rebate to Canadians who purchase or lease an eligible ZEV: a battery electric, hydrogen fuel cell, or longer range plug-in hybrid vehicle. Consumers that select a shorter-range plug-in hybrid vehicle will receive a $2,500 rebate towards their purchase.
They must also select an eligible ZEV with a base-model MSRP of less than $45,000 for passenger vehicles featuring six or fewer seats. Consumers can then add up to $10,000 in options. Those that purchase a ZEV with an MSRP of less than $55,000 with seven or more seats can add up to $5,000.
CADA worked closely with the government to ensure the program is national in scope, and stackable with other provincial incentives such as in Quebec and B.C., so that every dealer and consumer across the country can benefit from the program. The association has also ensured the eligibility criteria for ZEVs includes plug-in hybrids.
John White, CADA President and CEO said it will be important for the program to be seamless for both consumers and dealers.
“The provincial incentive program in Quebec and in B.C. works well; in Ontario, it did not work so well,” said White. “We provided this feedback to Transport Canada, whom we have been working with behind the scenes to ensure they are able to roll out a program that will meet all of our requirements.”
He adds that there are still some details to be worked out, but that CADA is engaged and committed to continue working with the federal government to ensure an efficient implementation and administration of the program.
Denis Dessureault, Executive Vice-President of the Corporation of the Montreal Automobile Dealers CCAM (left), CADA Economist Oumar Dicko (centre), and John White, CADA President and CEO (right).
White and Dicko were among several industry members that attended the ZEV press conference in Montreal. Others included Denis Dessureault, Executive Vice-President of the Corporation of the Montreal Automobile Dealers (CCAM), Robert Poëti, President and CEO of the Quebec Dealers Association (CCAQ), and Sidney Ribaux, Executive Director of the environmental group Équiterre. Anson Duran, Policy Advisor, Office of the Minister of Transport at Government of Canada, and Mélanie Joly, Minister of Tourism, Official Languages and La Francophonie, were also present.
Dealers with questions can call CADA’s Ottawa office at 1-800-465-3054 or email Huw Williams at firstname.lastname@example.org or Oumar Dicko at email@example.com