Ottawa will reimburse auto dealers on hook for $11 million in unpaid EV rebates
In January, Transport Canada paused its popular Incentives for Zero-Emission Vehicles program — iZEV — after its funding ran out. Ottawa spent nearly $3 billion on iZEV during its five-year lifespan.
The program provided up to $5,000 toward the purchase of a new zero-emissions vehicle. But with the abrupt suspension of the program — only three days after the government suggested it would be paused when the funds were exhausted — hundreds of dealerships were forced to swallow the cost of any rebate claims they hadn't yet submitted.
"It was a shocking series of events in January when they shut down the program after giving notice that the program would go through an orderly wind-down," said Huw Williams, public affairs director with the Canadian Automobile Dealers Association, which represents about 3,500 auto dealerships.
He said that, collectively, dealers are out about $11 million.
Tesla submitted rebate claims worth more than $43 million for 8,600 EVs on the weekend before the program was suspended, according to analysis by the Toronto Star.
In March, Transport Minister Chrystia Freeland said Ottawa was pausing payments to Tesla in order to investigate the claims it had made.
A spokesperson for Freeland's office would not offer an update on the Tesla investigation.
Williams said his organization has asked the government to explain what happened with Tesla's claims.
"Every taxpayer should want to know how Tesla was allowed to game the system over such a short period of time, and were all the rules followed and was there any inside notice given to them," Williams said.
"We don't know that, and we're not alleging that, but we think these are reasonable questions to ask for sure."
EV sales have sagged since the iZEV program was suspended. EV sales under the program peaked in December 2024 at 18.29 per cent of all new vehicles sold — the last full month before the program was suspended.
Sales fell in January to 11.95 per cent and slid further to 7.53 per cent in April, according to the most recent data from Statistics Canada.
Federal ministers have said the government is working toward bringing back consumer incentives for EVs — a promise also made in the Liberal party's election platform.
Automakers are warning that sales are slumping further as buyers wait for the rebates to come back.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
4 hours ago
- Winnipeg Free Press
Florida attorney general identifies wrongful charges under halted immigration law
ORLANDO, Fla. (AP) — At least two people have been wrongly charged under a Florida law that outlaws people living in the U.S. illegally from entering the state since a federal judge halted its enforcement, according to a report Florida's attorney general is required to file as punishment for defying the judge's ruling. Both men were arrested in late May by deputies in northeast Florida's St. Johns County, more than a month after U.S. District Judge Kathleen Williams in Miami issued an order freezing the enforcement of the state statute. The law makes it a misdemeanor for undocumented migrants to enter Florida by eluding immigration officials. Florida Attorney General James Uthmeier said in his report filed at the beginning of July that he only became aware of the two cases at the end of June after requesting information from state and local law enforcement. As punishment for flouting her order and being found in contempt, the judge requires Uthmeier to file bimonthly reports about whether any arrests, detentions or law enforcement actions have been made under the law. On May 29, St. Johns County Sheriff's Office deputies arrested a man with an active immigration detainer from Immigration and Customs Enforcement and another man on counts of illegal entry and driving without a valid driver's license, according to the status report. As corrective action, the charge involving the man with the ICE detainer was dismissed in state court, and prosecutors filed a motion that was granted to vacate the charge for illegal entry in the second case, R.J. Larizza, state attorney for the jurisdiction that covers St. Johns County, said in a separate filing. Florida Gov. Ron DeSantis signed the legislation into law in February as part of President Donald Trump's crackdown on illegal immigration. Immigrants rights groups filed a lawsuit on behalf of two unnamed, Florida-based immigrants living in the U.S. illegally shortly after the bill was signed into law. The lawsuit said the new legislation violates the Supremacy Clause of the U.S. Constitution by encroaching on federal duties. Williams issued a temporary restraining order and injunction that barred the enforcement of the new law statewide in April. The attorney general's office then unsuccessfully petitioned the 11th Circuit Court of Appeals to override that decision. Uthmeier has petitioned the U.S. Supreme Court to review the case. After Williams issued her original order, Uthmeier sent a memo to state and local law enforcement officers telling them to refrain from enforcing the law, even though he disagreed with the injunction. But five days later, he sent a memo saying the judge was legally wrong and that he couldn't prevent police officers and deputies from enforcing the law. The judge last month found Uthmeier to be in civil contempt of her ruling. ___ Follow Mike Schneider on the social platform Bluesky: @
CTV News
a day ago
- CTV News
Tesla debuts in India, but its cars likely cost too much for most Indians
Policemen stand guard as a three-wheeler auto-rickshaw drives past India's first Tesla showroom to be inaugurated in Mumbai, India, Tuesday, July 15, 2025. (AP Photo/Rafiq Maqbool) NEW DELHI — Tesla Inc. opened its first showroom in India on Tuesday, marking the electric vehicle maker's long-anticipated debut in the world's third-biggest automotive market. Located in the Bandra-Kurla Complex, an upscale business center in the financial capital Mumbai, the showroom will serve as Tesla's flagship retail and experience outlet as the company introduces its EV lineup to Indian customers. Tesla's entry to India comes after years of delays and policy friction, marking a pivotal expansion in a fast-growing consumer base while global sales are plunging and the company faces challenges in its two core markets, China and the U.S. Sales of Tesla electric cars fell sharply from April to June as boycotts over Elon Musk's political views continued keeping buyers away. For India, Tesla's entry signals rising investor confidence and strengthens its move towards clean mobility, although Tesla's higher pricing is likely to make its cars unaffordable for most Indians. The country's nascent electric vehicle market made up a little more than 2% of total car sales last year. But the government wants to change that and increase the electric vehicle share to 30% by 2030. Tesla will begin by importing and selling its popular Y model cars in India. The base price would be 6.78 million rupees ($79,089) for the long-range, rear-wheel drive vehicle, according to a presentation by the company during the showroom launch Tuesday. Delivery is expected to start from the third quarter, Tesla officials said. By comparison, the price tag is around $44,990 in the U.S without a federal tax credit. Tesla will compete mostly with German luxury carmakers such as BMW and Mercedes Benz Group AG, and not budget Indian players like Tata Motors Ltd. and Mahindra & Mahindra Ltd. The luxury car market makes up just about 1% of total vehicle sales The debut by American EV giant, however, would bring in world class technology to the country, auto analyst Gaurav Vangaal said. 'With deeper local investments, Tesla can accelerate India's EV ecosystem, drive innovation and support the government's goal of higher EV penetration,' said Vangaal, an associate director with S&P Global Mobility. Prime Minister Narendra Modi's government has wooed Tesla for years for its global brand value and to boost the country's clean energy endeavors. CEO Elon Musk invited Indians in April 2016 to preorder the upcoming Tesla Model 3. Several customers placed an order but the cars never arrived and the booking amount had to be refunded. Despite his earlier enthusiasm, in 2019 Musk expressed concern in a post on his social media platform X that import taxes could double prices of Tesla cars, making them 'unaffordable.' Tesla pressed Indian authorities to cut import taxes on EVs, which were up to 100%, to be able to test the local market. New Delhi, however, wanted Tesla to set up manufacturing facilities so a comprehensive policy could benefit all the players in the sector. The dynamics changed after Modi and Musk met in the U.S. in February during a state visit by Modi. Barely a month later, India rolled out a new policy to woo the likes of Tesla, reducing import taxes to 15% from 70% to 100% for EVs priced cheaper than $35,000 as long the automaker committed to building a factory in the country within three years. Soon after, Musk announced he would visit India in April to meet Modi. It was widely expected he would unveil Tesla's plans to set up manufacturing facilities and commit billions of dollars in investments. But Musk cancelled the visit, citing 'very heavy Tesla obligations,' and travelled to China instead. Since then, Tesla has conveyed it does not have an immediate interest in manufacturing in India. U.S. President Donald Trump has said it would be 'unfair' to the U.S. if Tesla builds a factory in India to circumvent that country's tariffs. India and the U.S. are currently negotiating a bilateral trade agreement for greater market access and reducing tariffs on most goods, including automobiles. Besides bringing Tesla to India, Musk's India ambition has been to launch Starlink's commercial internet services. The plan got a boost recently after the company secured regulatory clearances. Starlink now needs to secure telecommunications airwaves from the government, which may take at least a couple of months, before the services are formally launched. ___ Rafiq Maqbool in Mumbai contributed to this report. Rajesh Roy, The Associated Press
National Observer
a day ago
- National Observer
Federal departments fall short of Ottawa's 5% Indigenous procurement target
Several of Canada's federal departments didn't meet the mandated target for Indigenous procurement in 2023-2024, according to government documents obtained by Canada's National Observer through an Access to Information request. The policy, introduced in 2021, requires that at least five per cent of all federal spending must go to Indigenous businesses to address economic gaps and increase Indigenous participation in government supply chains. Although the federal government as a whole awarded more than $1.24 billion in contracts to Indigenous businesses last year — representing 6.1 per cent of all eligible contracts — the documents show significant variation in the awarding of federal contracts between departments. An Indigenous business is defined as one owned and operated by elders, band and tribal councils, businesses in the Indigenous Business Directory or on modern treaty beneficiary lists. Key organizations did not reach the five per cent threshold for the period — including Transport Canada, Global Affairs Canada, National Defence, the Public Health Agency of Canada, Statistics Canada, the Canadian Space Agency, Public Services and Procurement Canada, the Canada Border Services Agency, Canadian Heritage and the National Research Council of Canada (NRC). Departments that did not meet the target cited several persistent challenges: a lack of Indigenous businesses in highly technical sectors, legacy contracts signed before the five per cent rule, contracts set aside for Indigenous businesses that received no bids and the complexity of the federal procurement process. Transport Canada, in an email response to Canada's National Observer, confirmed it did not meet the target last year, citing 'delays and structural challenges within procurement processes' that limited Indigenous business participation. The department said new training and engagement tools are being implemented and it remains committed to reaching the target by the end of the current fiscal year. The federal government awarded $1.24B in contracts to Indigenous businesses last year — but the numbers varied widely across departments. The NRC also fell short, pointing to a limited pool of Indigenous suppliers for specialized scientific and technical equipment. It launched an Indigenous procurement strategy and action plan in September 2024, focusing on partnerships with Indigenous organizations, events and changes to the tender process. 'Meeting our target requires that we address the challenge of the current level of Indigenous business activities in supplying many of the products and services we procure, particularly those of a specialized nature,' the NRC said. Statistics Canada awarded just 2.75 per cent of its contract value to Indigenous businesses in 2023–2024. In its response, it said it fell short of its target in 2023-24 because 85 per cent of its 'informatics professional services' contracts were awarded through Public Services and Procurement Canada, which determines the procurement strategy, and 13 per cent of contracts were issued before the agency's Indigenous procurement plan took effect. Of the three new contracts awarded within Statistics Canada's delegation, two were designated for Indigenous businesses, but no bids were received for those opportunities. The agency said it saw an increase to 11 per cent in the current fiscal year after implementing a new procurement plan and boosting outreach to Indigenous suppliers. Public Services and Procurement Canada said while it missed its five per cent Indigenous contracting target for 2023-24, it is working to boost Indigenous participation through Indigenous subcontracting, training and Indigenous-by-default procurement by next fiscal year. The Public Health Agency of Canada said it is still working with other departments to improve Indigenous procurement, after missing its 2023-24 target and awarding only 1.5 per cent of 2024-25 contracts to Indigenous businesses — a figure not yet publicly released. Other departments that did not meet the five per cent target by the end of 2023–2024, including Global Affairs Canada and National Defence, have not yet provided responses to Canada's National Observer request for comment and clarification. Indigenous Services Canada told Canada's National Observer the results for the 2024–25 fiscal year are not yet available. The department continues to support Indigenous businesses through initiatives such as the Aboriginal Entrepreneurship Program, The Strategic Partnerships Initiative and the Indigenous Business Navigators. These programs do not focus on specific sectors, but offer economic opportunities, tools, and support for capacity-building for Indigenous entrepreneurs in the industries it has chosen to develop, said Anispiragas Piragasanathar, a spokesperson for Indigenous Services Canada.
