Tuesday, August 21, 2007

Canada's eco-Auto program backfiring, pickup sales increase


A new program to urge Canadian drivers to downsize to more fuel-efficient vehicles from large gas-guzzling SUVs has had the unwarranted effect of lifting sales of pickup trucks.

The new ecoAUTO Rebate Program offers a rebate ranging from $1,000 to $2,000 for people who pick up certain fuel-efficient vehicle, but slaps a $4,000 excise tax on fuel-heavy SUVs and sports cars.
Of course, there are many out there who are forced to use heavy pickups for their businesses, so to appease them, the Government exempted the excise on pickups. According to research released by DesRosiers Automotive Consultants, the program has been driving up sales of new pickup trucks since its introduction in March as a result.

New car-buyers who previously wanted an SUV are now switching to pickup models. Take Ford's Ranger, sales are up 18% for the first seven months of the year...

(and it does not help that the ecoAUTO rebates to not apply to hybrid/green cars which have been imported from the US).

[Source:  Autoblog, The Truth About Cars]

1 comment:

dinaz said...

Do you have any other figures for which pickups have increased sales? The Ford Ranger is a small pickup and ranked as the most efficient among all pickups. Perhaps many are choosing the Ranger over teh Silverado or Ram because they are becoming more fuel/eco conscious but still want the utility of a pickup. Are the big bad pickup sales increasing too?