Why can't they let the automakers apply the discount or pay the customers at the time of the sale (just like the gas guzzler levy is collected at the time of the sale) and deal with the government.
Ottawa can't shift green rebates into gear
Qualified car buyers have not been paid
GREG KEENAN
July 31, 2007 at 1:00 AM EDT
More than four months after announcing rebates for those who buy fuel-sipping cars and trucks, the federal government has not paid a cent to buyers of 2006 and 2007 models that qualify, and automakers are voicing complaints as 2008 models flow on to dealers' lots.
The ecoAuto feebate program set up in the March federal budget, offers rebates of up to $2,000 and also slaps a maximum levy of $4,000 on gas guzzlers. But it is angering consumers and growing increasingly messy for the auto companies, associations representing the major automakers operating in Canada say in a letter to Transport Minister Lawrence Cannon, Finance Minister Jim Flaherty and Environment Minister John Baird.
“Our members report they are already receiving numerous letters of complaint and frustration over the fact that no process to apply for the rebate has been established,” David Adams, president of the Association of International Automobile Manufacturers of Canada and Mark Nantais, president of the Canadian Vehicle Manufacturers Association , said in a letter to the federal ministers.
No money has been paid out to buyers of 2006 and 2007 models that qualify for the incentives, Transport Canada spokesman Robin Browne confirmed Monday from Ottawa.
“The government will finalize the program in the coming months and aims to issue cheques in the fall,” Mr. Browne said.
As for why it has taken so long to get this far, he said the government is working as quickly as possible to put the program in place.
By contrast, Honda Canada Inc., began offering rebates on its Fit subcompact car and manual transmission Civic compact in May, made them retroactive to budget day, March 19, and is paying the money, senior vice-president Jim Miller said Monday.
The Fit did not qualify under the federal scheme because it uses 6.6 litres of gas to travel 100 kilometres, just missing the cut-off line for rebates on 2007 and 2006 vehicles, which is set at 6.5 litres per 100 kilometres.
People who bought Toyota Yaris subcompacts, ethanol-powered Chevrolet Impalas and Chrysler Sebrings, diesel-powered Smart cars and other alternative -technology vehicles after March 19 are eligible for rebates.
But consumers kicking tires on 2008 models, assuming they will get a rebate, may be out of luck because Transport Canada still hasn't announced what vehicles from the new model year are eligible.
No date is set yet to publish the list of which 2008 models are eligible, Mr. Browne said.
“The government has established a program that continues to be bereft of critical details for both manufacturers and consumers,” Mr. Adams and Mr. Nantais said in their letter.
Many automakers already have several 2008 models on the road, and most have switched production at their plants over to new models and stopped cranking out 2007 versions.
“It's becoming a customer nightmare,” Honda's Mr. Miller said Monday.
Honda has improved the fuel consumption of the Fit so that buyers of the 2008 model will be eligible for the federal rebate if the same 6.5-litre rule applies, Mr. Miller said.
“Not having firm regulatory guidelines adds an element of risk to doing business in Canada,” added Stuart Schorr, a spokesman for DaimlerChrysler Canada Inc.
Although sales of Toyota's Yaris jumped in April and May after the program was introduced, they fell in June.
Industry analyst Dennis DesRosiers, who heads DesRosiers Automotive Consultants Inc., said an analysis of subcompact sales for the past two years shows the so-called feebate program has had little impact on sales.
“We said on day one that the feebate would fail miserably, four months into the program we are being proven to be right,” Mr. DesRosiers said in a note to clients last week.
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