Summary
- Canadian electric vehicle rebates aim to bring down upfront costs through dealership rebates of up to $5,000
- Tesla claimed over half of the remaining rebate funds in Canada, leaving dealerships without reimbursement
- Toyota has suspended RAV4 production in Japan following a fatal explosion at a parts factory
- California’s 2035 gas car ban is not subject to review or repeal by Congress, as it is a waiver granted under the Clean Air Act
- California’s strict emissions standards, adopted by eleven other states, are a subject of debate in terms of enforcement and potential revocation
Article
Electric Vehicle Rebates in Canada
Electric vehicle rebates in Canada differ from those in the U.S., but they serve the same purpose: bringing the upfront costs of EVs down. Dealerships provide rebates of up to $5,000 at the point of sale, and then the government reimburses them. However, before the program ended in January, Tesla reportedly claimed over half of the remaining funds, leaving Canadian dealers in the red. Now, they’re upset about the situation.
Foul Cry by Canadian Car Dealers
Canada’s iZEV rebate was paused in January after the funds earmarked for the program were allocated earlier than expected. The weekend before the program ended, there was a massive increase in claims from Tesla, as it claimed over half of the remaining $71.8 million (Canadian dollars). The Toronto Star reported that Tesla outlets filed for 8,653 EV sales in just 72 hours, ultimately leading to the portal’s shutdown, leaving dealerships without a way to recoup the rebates.
Fightback by Dealers
Independent dealerships have reportedly spent $10 million out of pocket, causing a Canada Automobile Dealers Association spokesperson to think Tesla may have done something unusual, possibly illegal. The spokesperson stated that these dealers should not be left making a payment on behalf of the Government of Canada. Some officials likened the situation to the “Black Friday” of EV sales, with Tesla stores in Quebec City alone filing for 4,000 rebates in a weekend.
California’s Gas Car Ban
The Environmental Protection Agency approved California’s ban on sales of new gas cars from 2035, with eleven other states planning to adopt the state’s Advanced Clean Cars II program. The ban is not a federal regulation but a waiver granted under the 1970 Clean Air Act, making it not subject to review or repeal by Congress. Despite this, Republicans are planning next steps to challenge this ban, while California remains committed to transitioning to clean energy with its Advanced Clean Cars II program.
Toyota’s Production Halt
Toyota has suspended the production of the RAV4 in Japan following a worker’s death at a parts supplier. Operations at two plants will be suspended, impacting the production of the hybrid and plug-in hybrid versions. The RAV4 has been America’s best-selling SUV for eight consecutive years, with Toyota aiming to resume production soon. This incident highlights the importance of workplace safety in the automotive industry.
Future of Emissions Standards
California has been the driving force behind setting stricter emissions standards in the U.S., inspiring other states to follow suit. The state’s gas car ban has faced opposition from the Trump administration, but efforts to repeal it may face legal challenges. As the auto industry transitions towards electric vehicles, the debate on emissions standards and government regulations will continue to shape the future of the automotive sector.
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