Vehicles sold in Canada during and after 2004 (including 2009 models) comply with the U.S. EPA Tier II standards. In 2007 over 34 percent (or 6.9 million) of Canada's registered vehicles were over 10 years old or older. This number is forecast to exceed seven million by 2011.
“Retire Your Ride has proven ineffective in stimulating sales to any significant degree and therefore cannot be classified as a fleet renewal program.”
That opinion was published in a document called Vehicle Scrappage in Canada, published by the Canadian Automobile Dealers’ Association (CADA). (The full document is available at www.cada.ca).
CADA is far from the only dissenting voice. Analysts have noted that an incentive of $300 is just way too meager to get owners out of their road-worthy vehicles. An insurance company, for example, would typically peg the replacement cost of any road-worthy vehicle, regardless of age, at about $2,500.
Environment Minister Jim Prentice is the politician in the hot seat. He’s publicly acknowledged that “Retire Your Ride” was crafted before the recession and that the program was never designed as an economic stimulus package.
He has also said his department is closely reviewing whether Canada should follow the U.S. and German leads in going big time with incentives, and will make its decision by September. Analysts have suggested that Prentice is worried that Canadian taxpayers have lost their appetite for providing financial relief to the automotive industry.
photo:Jupiter images
“Retire Your Ride has proven ineffective in stimulating sales to any significant degree and therefore cannot be classified as a fleet renewal program.”
That opinion was published in a document called Vehicle Scrappage in Canada, published by the Canadian Automobile Dealers’ Association (CADA). (The full document is available at www.cada.ca).
 |
CADA is far from the only dissenting voice. Analysts have noted that an incentive of $300 is just way too meager to get owners out of their road-worthy vehicles. An insurance company, for example, would typically peg the replacement cost of any road-worthy vehicle, regardless of age, at about $2,500.
Environment Minister Jim Prentice is the politician in the hot seat. He’s publicly acknowledged that “Retire Your Ride” was crafted before the recession and that the program was never designed as an economic stimulus package.
He has also said his department is closely reviewing whether Canada should follow the U.S. and German leads in going big time with incentives, and will make its decision by September. Analysts have suggested that Prentice is worried that Canadian taxpayers have lost their appetite for providing financial relief to the automotive industry.
photo:Jupiter images