Hyundai Canada wants your pre-1995 vehicle. Hand over the keys and they’ll gladly give you $500 to $1,000.
There are certain conditions of course. For starters, you have to purchase a new Hyundai, and consent to having your old ride taken off the road forever and ever.
It’s all part of the automaker’s new “Clean Air Commitment” program.
Hyundai Auto Canada president, Stephen Kelleher, revealed the program on August 19, at an auto recycling facility in Toronto’s east end. His presentation incorporated a very effective visual aid — a crane dropping a 1993 Dodge Shadow into a dumpster.
But the money is on top of any Hyundai incentive money already on the table, and on top on any money already on the table through Canada’s “Retire Your Ride” program ($300 in most provinces, $1,250 in B.C.). Retire Your Ride “scrappage” program is designed to help get more pre-1995 vehicles off the road; such vehicles produce 19 times more smog-forming pollutants than 2004 and newer models.
The U.S. “Cash for Clunkers” program offers $3,500 to $4,500 to consumers who trade in their old rides for new vehicles. Those numbers make the U.S. scrappage program also an economic stimulus package.
There is pressure for Canada to follow suit. If bigger government incentives show up, Hyundai will still give you its “Clean Air” cash.
While Hyundai is obviously hoping the program will increase sales, Kelleher maintains it’s not all about sales.
“We’re looking at this more as a CSR (Corporate Social Responsibility) Initiative… We’re not making a lot of money of these deals. When you add $500 to the $3,600 that we’re already offering on Accent for example, plus zero percent financing — it’s costly.
“We’ve been successful the last two years… We thought this was a good platform for giving something back.”
Kelleher added that the brain trust at Hyundai Canada was knocking around this “top up” scrappage incentive for two or three months, but were unsure how customers would respond.
Then U.S. President Obama brought out “Cash for Clunkers.” It’s success clearly “sealed the deal” for the Hyundai plan.
Kelleher notes a “best case scenario”
for 2009 would be to sell 4,000 vehicles under the plan -- scrapping 4,000 polluters in the process.
The company has earmarked $2 million for the program's run in 2009, but no final deadline or final budget has been set.
“But we want to see how things go,” said Kelleher. “We want to make sure it is something that is making an impact on a long term basis.”
As per the U.S experience, Hyundai expects most “scrappers” to purchase Accents, Elantras, and Sonatas, though they can buy anything they want — even a V8 Genesis. In fact, the $1,000 incentive is only available when purchasing Hyundai’s higher-priced offerings, such as Genesis and Veracruz. Most of Hyundai’s line will get the $500 incentive.
Critics of “Cash for Clunkers” programs say such plans only “pull forward” sales that would eventually occur anyways. But Kelleher feels “pulling forward” is the whole point — getting older vehicles off the road sooner than later.
photo:Mike Goetz
There are certain conditions of course. For starters, you have to purchase a new Hyundai, and consent to having your old ride taken off the road forever and ever.
It’s all part of the automaker’s new “Clean Air Commitment” program.
Hyundai Auto Canada president, Stephen Kelleher, revealed the program on August 19, at an auto recycling facility in Toronto’s east end. His presentation incorporated a very effective visual aid — a crane dropping a 1993 Dodge Shadow into a dumpster.
But the money is on top of any Hyundai incentive money already on the table, and on top on any money already on the table through Canada’s “Retire Your Ride” program ($300 in most provinces, $1,250 in B.C.). Retire Your Ride “scrappage” program is designed to help get more pre-1995 vehicles off the road; such vehicles produce 19 times more smog-forming pollutants than 2004 and newer models.
The U.S. “Cash for Clunkers” program offers $3,500 to $4,500 to consumers who trade in their old rides for new vehicles. Those numbers make the U.S. scrappage program also an economic stimulus package.
There is pressure for Canada to follow suit. If bigger government incentives show up, Hyundai will still give you its “Clean Air” cash.
While Hyundai is obviously hoping the program will increase sales, Kelleher maintains it’s not all about sales.
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“We’re looking at this more as a CSR (Corporate Social Responsibility) Initiative… We’re not making a lot of money of these deals. When you add $500 to the $3,600 that we’re already offering on Accent for example, plus zero percent financing — it’s costly.
“We’ve been successful the last two years… We thought this was a good platform for giving something back.”
Kelleher added that the brain trust at Hyundai Canada was knocking around this “top up” scrappage incentive for two or three months, but were unsure how customers would respond.
Then U.S. President Obama brought out “Cash for Clunkers.” It’s success clearly “sealed the deal” for the Hyundai plan.
Kelleher notes a “best case scenario”
for 2009 would be to sell 4,000 vehicles under the plan -- scrapping 4,000 polluters in the process.
The company has earmarked $2 million for the program's run in 2009, but no final deadline or final budget has been set.
“But we want to see how things go,” said Kelleher. “We want to make sure it is something that is making an impact on a long term basis.”
As per the U.S experience, Hyundai expects most “scrappers” to purchase Accents, Elantras, and Sonatas, though they can buy anything they want — even a V8 Genesis. In fact, the $1,000 incentive is only available when purchasing Hyundai’s higher-priced offerings, such as Genesis and Veracruz. Most of Hyundai’s line will get the $500 incentive.
Critics of “Cash for Clunkers” programs say such plans only “pull forward” sales that would eventually occur anyways. But Kelleher feels “pulling forward” is the whole point — getting older vehicles off the road sooner than later.
photo:Mike Goetz