Subsidies for electric cars: Ottawa judges legitimate the $ 43 million claimed by Tesla

Tesla legitimately requested thousands of electric vehicles in the last weekend preceding the suspension of the discount program by the Canada Ministry of Transport in January. Therefore, it said on Friday.

In an email addressed to the Canadian press. Meanwhile, a spokesperson for the Minister of Transport, Chrystia Freeland, said that even if the ministry is still giving a few requests, the Transport Canada survey revealed that Tesla requests were considered legitimate for vehicles sold before January 12.

The ministry said that all dealership requests had been assessed according to the same criteria.

January 12 was the last day when discount requests were accepted as part of the popular incentive program for zero emission vehicles. Consequently, called iVZE. Therefore, subsidies electric cars: ottawa judges Ottawa spent nearly $ 3 billion on this program during its five years of existence. Similarly, This program offered up to $ 5,000 for the purchase of a new zero emission vehicle.

On Friday, January 10, Transport Canada announced the suspension of the program as soon as the remaining funds are exhausted. Consequently, Three days later. Furthermore, the ministry announced the suspension and said that no other discount would be paid for the requests presented after January 12.

As the first Toronto StarTesla filed 8,600 discount requests during this weekend, for a value of $ 43 million. For example, Following the article of Starpublished in March, Ms. Nevertheless, Freeland said that the government was frozen all the discount payments in Tesla until the validation of its requests.

It is still unknown if Tesla claimed to have sold all these vehicles that weekend. if subsidies electric cars: ottawa judges the requests concerned sales that had not yet been submitted to the government to benefit from the discount iVZE.

Transport Canada holds a public database of discount requests iVZE. However. this database does not indicate the date of sale of a vehicle: it only indicates the date of the request for discounts, which can occur well after the sale and delivery of the vehicle to the customer.

Tesla did not respond to the many requests for the Canadian press maintenance.

When the program iVZE Was suddenly suspended. hundreds of dealers have been forced subsidies electric cars: ottawa judges to assume the cost of reimbursement requests not yet subject. Friday. Transport Canada explained how these dealers will be reimbursed and announced a period of one month to submit a refund request.

During a call with dealerships. Transport Canada representatives indicated that any vehicle delivered to customers before the program suspension on January 12 would be eligible for a refund.

Subsidies electric cars: ottawa judges

Associations of dubious automobile retailers

The corporation of automotive retailers associations has favorably welcomed the announcement. of Transport Canada. She estimates that her 3,500 members owe around $ 11 million for the vehicle discounts they have already sold.

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Immediately after [la réunion d’information de Transports Canada]I received calls from dealers who were upset. worried about this situation, as it had a considerable impact on their cash flowsaid Huw Williams, Director of Public Affairs of the Corporation.

Learning that dealers were going to be paid was very moving, because not all manufacturers covered or supported them.

Dealers can only file a maximum of 25 complaints per day. Mr. Williams said he believed that this will largely fill the shortfall. He said the highest subsidies electric cars: ottawa judges sum due to a dealer amounts to around $ 600,000.

Transport Canada also indicated that any vehicle purchased before the deadline of January 12 but delivered to the. customer after this date will not be eligible for a refund.

We will discuss the deadline with Transport Canada. We will see the extent of the problem and if it can be solved. But for the moment, it is a victory for dealers.

Program closure iVZE After its gradual end you were announced in January was a real disastercommented the Director of Public Affairs of the Corporation.

While accepting the conclusion of Transport Canada that Tesla’s complaints at the last weekend of the program iVZE were legitimate. Mr. Williams questioned the moment. the volume of these complaints, which occurred just when the program was about to be suspended.

I think that a more general question arises: how did Tesla knew that it was necessary. to treat them that weekend? questioned Mr. Williams.

It does not seem to me that we have conducted communications between Transport Canada. Tesla, between officials who could have transmitted information in an inappropriate manner.

Subsidies electric cars: ottawa judges

Sales on the descending slope

Sales of electric vehicles have dropped from the program suspension iVZE. They reached a summit in December 2024, the last full month before the program suspension, representing 18.29 % of all new vehicles sold in Canada.

According to the most recent data in Statistics Canada, sales dropped to 11.95 % in January, then 7.53 % in April.

Federal ministers have indicated that the government was working to restore consumption incentives for electric vehicles. a promise also inscribed in the Liberal Party electoral platform.

The car manufacturers warn for their part that sales continue to fall, buyers awaiting the return of the discounts.