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National Observer
11-07-2025
- Automotive
- National Observer
Ottawa will reimburse unpaid EV rebates, no update on Tesla investigation
The federal government will explain today how it plans to reimburse auto dealers who were left hanging when Ottawa suspended its electric vehicle rebate program earlier this year. In January, Transport Canada paused its popular Incentives for Zero-Emission Vehicles program — iZEV — after its funding ran out. Ottawa spent nearly $3 billion on iZEV during its five-year lifespan. The program provided up to $5,000 toward the purchase of a new zero-emissions vehicle. But with the abrupt suspension of the program — only three days after the government suggested it would be paused when the funds were exhausted — hundreds of dealerships were forced to swallow the cost of any rebate claims they hadn't yet submitted. "It was a shocking series of events in January when they shut down the program after giving notice that the program would go through an orderly wind-down," said Huw Williams, public affairs director with the Canadian Automobile Dealers Association, which represents about 3,500 auto dealerships. He said that, collectively, dealers are out about $11 million. Tesla submitted rebate claims worth more than $43 million for 8,600 EVs on the weekend before the program was suspended, according to analysis by the Toronto Star. In March, Transport Minister Chrystia Freeland said Ottawa was pausing payments to Tesla in order to investigate the claims it had made. A spokesperson for Freeland's office would not offer an update on the Tesla investigation. Williams said his organization has asked the government to explain what happened with Tesla's claims. "Every taxpayer should want to know how Tesla was allowed to game the system over such a short period of time, and were all the rules followed and was there any inside notice given to them," Williams said. "We don't know that, and we're not alleging that, but we think these are reasonable questions to ask for sure." EV sales have sagged since the iZEV program was suspended. EV sales under the program peaked in December 2024 at 18.29 per cent of all new vehicles sold — the last full month before the program was suspended. Sales fell in January to 11.95 per cent and slid further to 7.53 per cent in April, according to the most recent data from Statistics Canada. Federal ministers have said the government is working toward bringing back consumer incentives for EVs — a promise also made in the Liberal party's election platform. Automakers are warning that sales are slumping further as buyers wait for the rebates to come back.
11-07-2025
- Automotive
Dealerships on hook for unpaid EV rebates have a month to get their claims in
Headlines Latest News Podcasts (new window) Home Politics Federal Politics Any vehicle delivered before Jan. 12 will be eligible for reimbursement Electric vehicles were eligible for up to $5,000 in rebates under a federal program that ran out of funds at the start of the year. Photo: (Jacques Boissinot/The Canadian Press) Nick Murray (new window) · The Canadian Press Car dealerships who are on the hook for thousands of dollars in electric vehicle rebates will have a month to make a claim to get their money back. Transport Canada laid out the details in a call Friday with dealerships, indicating any vehicle delivered before the program paused on Jan. 12 will be eligible for reimbursement. The Canadian Automobile Dealers Association welcomed the news, and estimates its members are owed about $11 million for rebates they had already delivered to customers but which were not reimbursement before the federal government said the program had run out of money. New EV rebate program in the works, environment minister says (new window) Dealerships will be allowed to file a maximum of 25 claims per day, which the association said will more than cover the shortfall. The Incentives for Zero-Emission Vehicles program ran out of funding in January after Ottawa spent nearly $3 billion on it during its five-year lifespan. The program provided up to $5,000 toward the purchase of a new zero-emission vehicle. The government has indicated it's looking at resuming the program in some form, but has not provided details. Nick Murray (new window) · The Canadian Press Carney meeting with cabinet, premiers after U.S. president threatens steeper 35% tariff 13 minutes ago Federal Politics Products were recalled in Ontario, Alberta and Manitoba in June As scams get more sophisticated, experts say they're becoming harder to catch Europe unveils new deal to allow more food and fuel into Gaza 35 minutes ago Armed Conflicts Environmentalist says the movement now needs to focus on local community action 4 hours ago Climate Change
CBC
11-07-2025
- Automotive
- CBC
Dealerships on hook for unpaid EV rebates have a month to get their claims in
Car dealerships who are on the hook for thousands of dollars in electric vehicle rebates will have a month to make a claim to get their money back. Transport Canada laid out the details in a call Friday with dealerships, indicating any vehicle delivered before the program paused on Jan. 12 will be eligible for reimbursement. The Canadian Automobile Dealers Association welcomed the news, and estimates its members are owed about $11 million for rebates they had already delivered to customers but which were not reimbursement before the federal government said the program had run out of money. Dealerships will be allowed to file a maximum of 25 claims per day, which the association said will more than cover the shortfall. The Incentives for Zero-Emission Vehicles program ran out of funding in January after Ottawa spent nearly $3 billion on it during its five-year lifespan. The program provided up to $5,000 toward the purchase of a new zero-emission vehicle. The government has indicated it's looking at resuming the program in some form, but has not provided details.
National Observer
11-07-2025
- Automotive
- National Observer
Ottawa will reimburse auto dealers on hook for $11 million in unpaid EV rebates
The federal government will explain today how it plans to reimburse auto dealers who were left hanging when Ottawa suspended its electric vehicle rebate program earlier this year. In January, Transport Canada paused its popular Incentives for Zero-Emission Vehicles program — iZEV — after its funding ran out. Ottawa spent nearly $3 billion on iZEV during its five-year lifespan. The program provided up to $5,000 toward the purchase of a new zero-emissions vehicle. But with the abrupt suspension of the program — only three days after the government suggested it would be paused when the funds were exhausted — hundreds of dealerships were forced to swallow the cost of any rebate claims they hadn't yet submitted. "It was a shocking series of events in January when they shut down the program after giving notice that the program would go through an orderly wind-down," said Huw Williams, public affairs director with the Canadian Automobile Dealers Association, which represents about 3,500 auto dealerships. He said that, collectively, dealers are out about $11 million. Tesla submitted rebate claims worth more than $43 million for 8,600 EVs on the weekend before the program was suspended, according to analysis by the Toronto Star. In March, Transport Minister Chrystia Freeland said Ottawa was pausing payments to Tesla in order to investigate the claims it had made. A spokesperson for Freeland's office would not offer an update on the Tesla investigation. Williams said his organization has asked the government to explain what happened with Tesla's claims. "Every taxpayer should want to know how Tesla was allowed to game the system over such a short period of time, and were all the rules followed and was there any inside notice given to them," Williams said. "We don't know that, and we're not alleging that, but we think these are reasonable questions to ask for sure." EV sales have sagged since the iZEV program was suspended. EV sales under the program peaked in December 2024 at 18.29 per cent of all new vehicles sold — the last full month before the program was suspended. Sales fell in January to 11.95 per cent and slid further to 7.53 per cent in April, according to the most recent data from Statistics Canada. Federal ministers have said the government is working toward bringing back consumer incentives for EVs — a promise also made in the Liberal party's election platform. Automakers are warning that sales are slumping further as buyers wait for the rebates to come back.
Globe and Mail
11-07-2025
- Automotive
- Globe and Mail
Ottawa to reimburse auto dealers for unpaid EV rebates
The federal government is set to reimburse car dealers for electric-vehicle subsidies they paid to customers before Ottawa shut down the program in January. The government will host a webinar with the dealerships on Friday outlining how the program will be reopened to reimburse the businesses for rebates of up to $5,000 car, incentives Ottawa cancelled after Tesla TSLA-Q claimed millions of dollars in rebates in a short period. However, the government is still not saying when it will fulfil its promise to resume the rebate program it calls Incentives for Zero-Emission Vehicles (iZEV) for current car buyers. 'The reimbursement process for unpaid claims will be announced to dealerships on Friday,' said Laura Scaffidi, spokeswoman for Transport Minister Chrystia Freeland. 'All eligible claims will be paid out.' 'Important to note that this is not about a new program,' Ms. Scaffidi said. Opinion: Ottawa, bring back Canada's EV incentive program The government owes the country's car dealers a total of as much as $11-million for rebates on EV sales, said Huw Williams, head of the Canadian Automobile Dealers Association, which represents 3,500 sellers. 'We've been pressuring the government for an extended period of time to get dealers paid,' Mr. Williams said by phone. The government in early January warned the program, designed to reduce carbon pollution by influencing buyer choices, was running out of cash and would end before the scheduled end date of March 31. On Jan. 13, the government declared the fund exhausted and cancelled the program. 'They pulled the plug on the whole program,' Mr. Williams said. The government has repeatedly said it will restore the program but has yet to provide a time frame. Car dealers say the wait is bad for their businesses as buyers are putting off purchases in hopes of getting a rebate later. 'What's happening on showroom floors is consumers are hearing rebates are coming back and they're waiting and it's stalling sales and you can see it in the sales numbers,' Mr. Williams said. 'The future of the program – it's not helpful to be dangling that as a potential because it's killing EV sales.' Ms. Scaffidi on Wednesday did not respond to a question on when the program for new buyers will restart. 'We are looking at ways to reintroduce a purchase incentive worth up to $5,000 that supports Canadian workers, strengthens our domestic supply chains, and reflects the times we are in,' Ms. Scaffidi said. Ms. Freeland said in March cars made by U.S.-based Tesla will not be eligible for the rebate program when it restarts unless President Donald Trump drops the raft of tariffs he imposed against Canadian goods – everything from steel and aluminum to automobiles and oil. Tesla is blamed for the early end of the original rebate system, after the automaker's Canadian dealers registered 8,600 sales at four dealers in one weekend in January, the Toronto Star reported, citing Transport Canada data. The total rebate claim was worth $43-million. The government on Monday, Jan. 13, said the fund had run dry. Ms. Freeland later said Tesla's claims were frozen and each application would be reviewed. Tesla did not respond to emailed questions. As Ottawa stalls the reintroduction of the EV rebates, it is sticking with rules that require 20 per cent of cars sold for the 2026 model year to be powered by a battery, fuel cell, or plug-in hybrid system. This rises to 60 per cent by 2030 and 100 per cent by 2035. The car makers are pushing Ottawa to drop the rules, saying none of the traditional manufacturers are close to the required ratio. In April, zero-emissions cars comprised 7.5 per cent of new vehicle sales, Statistics Canada said. Sales of all motor vehicles rose by 11 per cent but EVs sales fell by 28 per cent drop from April, 2024. Car makers that do not meet the 20-per-cent threshold are required to purchase credits from those that have exceeded the bar. However, Tesla's sales have plunged along with the public's regard for Mr. Musk's involvement in the U.S. administration, and available credits are scarce, industry participants say.
