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Ottawa will reimburse unpaid EV rebates, no update on Tesla investigation
Ottawa will reimburse unpaid EV rebates, no update on Tesla investigation

National Observer

time4 days ago

  • Automotive
  • National Observer

Ottawa will reimburse unpaid EV rebates, no update on Tesla investigation

The federal government will explain today how it plans to reimburse auto dealers who were left hanging when Ottawa suspended its electric vehicle rebate program earlier this year. 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.

Dealerships on hook for unpaid EV rebates have a month to get their claims in

time4 days ago

  • Automotive

Dealerships on hook for unpaid EV rebates have a month to get their claims in

Headlines Latest News Podcasts (new window) Home Politics Federal Politics Any vehicle delivered before Jan. 12 will be eligible for reimbursement Electric vehicles were eligible for up to $5,000 in rebates under a federal program that ran out of funds at the start of the year. Photo: (Jacques Boissinot/The Canadian Press) Nick Murray (new window) · The Canadian Press Car dealerships who are on the hook for thousands of dollars in electric vehicle rebates will have a month to make a claim to get their money back. Transport Canada laid out the details in a call Friday with dealerships, indicating any vehicle delivered before the program paused on Jan. 12 will be eligible for reimbursement. The Canadian Automobile Dealers Association welcomed the news, and estimates its members are owed about $11 million for rebates they had already delivered to customers but which were not reimbursement before the federal government said the program had run out of money. New EV rebate program in the works, environment minister says (new window) Dealerships will be allowed to file a maximum of 25 claims per day, which the association said will more than cover the shortfall. The Incentives for Zero-Emission Vehicles program ran out of funding in January after Ottawa spent nearly $3 billion on it during its five-year lifespan. The program provided up to $5,000 toward the purchase of a new zero-emission vehicle. The government has indicated it's looking at resuming the program in some form, but has not provided details. Nick Murray (new window) · The Canadian Press Carney meeting with cabinet, premiers after U.S. president threatens steeper 35% tariff 13 minutes ago Federal Politics Products were recalled in Ontario, Alberta and Manitoba in June As scams get more sophisticated, experts say they're becoming harder to catch Europe unveils new deal to allow more food and fuel into Gaza 35 minutes ago Armed Conflicts Environmentalist says the movement now needs to focus on local community action 4 hours ago Climate Change

Tesla registrations plummet 67% in Canada in first half of 2025
Tesla registrations plummet 67% in Canada in first half of 2025

Yahoo

time5 days ago

  • Automotive
  • Yahoo

Tesla registrations plummet 67% in Canada in first half of 2025

Tesla registrations fell 67 per cent in Canada in the first half of 2025, as the brand stumbled over a series of self-inflicted and external setbacks. Buyers across the country registered just over 9,000 Teslas from January through June, far short of the more than 26,000 new to Canadian roads in the first two quarters of 2024 according to data from S&P Global Mobility. The wider zero-emission vehicle market also got walloped, with registrations down 32 per cent in the first half of 2025, compared to the same period of 2024. The end of the federal Incentives for Zero-Emission Vehicles (iZEV) program in mid-January and major changes to Quebec's Roulez Vert rebate program, including a hiatus for February and March, were key contributors to the decline. Sign up for Automotive News Canada Breaking Alerts and be the first to know when big news breaks in the Canadian auto industry. But significant price hikes and political backlash took an added toll on Tesla, said James Hearn, associate director and product manager of Canada industry performance with S&P Global Mobility. 'It's very scary numbers for them.' Tesla raised prices on much of its vehicle lineup in Canada, including its best-selling Model Y and Model 3, Feb. 1. It hiked costs further in April in response to Canada's 25-per-cent retaliatory tariffs imposed on U.S. vehicle imports, which affect all Tesla models sold in Canada. While the starting price for the Model Y spiked to as high as $84,990 after the April increase, Tesla slashed the starting price for the model to $64,990 July 10, after the close of the second quarter. That's up from $59,990 to start the year. Newly ordered Model 3s start at $79,990, up from $54,990 in January. Tesla CEO Elon Musk's close political affiliation with U.S. President Donald Trump compounded the negative pressure of the price hikes. Trump has repeatedly floated annexing Canada as the 51st U.S. state since taking office in January. Musk piled on Trump's rhetoric in a February post on X, formerly Twitter, writing, 'Canada is not a real country.' The post was later deleted. Tesla faced determined protests at its showrooms across Canada this spring. The company's vehicles were also removed from a series of EV incentive programs across the country in response to Musk's hostility. One notable exception is Quebec, where the Model Y and 3 remain eligible for rebates. According to provincial rebate data running through the end of May, Tesla has accounted for 7.7 per cent of all rebates awarded in the province this year. That's roughly half the 14.9 per cent of provincial incentives the company secured throughout calendar year 2024. Consumer sentiment toward the brand has soured considerably over the past year. In a recent J.D. Power study, just 13 per cent of Canadian consumers in the market for an EV would consider purchasing a Tesla. That's down from 29 per cent who would have put the brand on their shopping lists in 2024. The dramatic drop off in Tesla's Canadian sales in the first half corresponds with its declines in other markets. In Europe, for instance, Tesla registrations dropped 37 per cent for the first five months of the year. Globally, Tesla said July 2 that it delivered 720,803 vehicles in the first half, down 13 per cent from a year earlier. The company does not break out sales by country and did not return a request for comment about its performance in Canada. While Canada's overall ZEV market was down heavily during the first six months of 2025, S&P's Hearn said General Motors bucked the trend, capturing significant market share from Tesla. Strong sales of the Chevrolet Equinox and new Cadillac Optiq were key contributors for the company. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Ottawa to reimburse auto dealers on hook for $11 million in unpaid EV rebates
Ottawa to reimburse auto dealers on hook for $11 million in unpaid EV rebates

Toronto Sun

time5 days ago

  • Automotive
  • Toronto Sun

Ottawa to reimburse auto dealers on hook for $11 million in unpaid EV rebates

Published Jul 11, 2025 • 2 minute read A Ford Mustang Mach-E electric vehicle (EV) charges via a CCS DC fast charger from Electrify America at a shopping mall parking lot in Torrance, Calif., on Feb. 23, 2024. Environment Minister Julie Dabrusin promised Tuesday to restore the $5,000 Trudeau-era bribe to EV buyers and to spend tens of billions more (maybe more than $100 billion) building a network of charging stations. Photo by PATRICK T. FALLON / AFP via Getty Images OTTAWA — The federal government will explain today how it plans to reimburse auto dealers who were left hanging when Ottawa suspended its electric vehicle rebate program earlier this year. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account 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. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. 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. This advertisement has not loaded yet, but your article continues below. '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. Read More NHL Toronto Maple Leafs Editorial Cartoons Relationships Toronto & GTA

Ottawa will reimburse auto dealers on hook for $11 million in unpaid EV rebates
Ottawa will reimburse auto dealers on hook for $11 million in unpaid EV rebates

National Observer

time5 days ago

  • Automotive
  • National Observer

Ottawa will reimburse auto dealers on hook for $11 million in unpaid EV rebates

The federal government will explain today how it plans to reimburse auto dealers who were left hanging when Ottawa suspended its electric vehicle rebate program earlier this year. 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.

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