In the spring of 2020, at the height of the coronavirus crisis, the Corporation of Automobile Retailers Associations (CADA) of Canada praised the efforts of the federal government to come to the aid of businesses, including dealers, but these still wanted more measures.
While public consultations have just started for the 2021 federal budget, which will serve to boost the country’s economy beyond the pandemic, the organization reiterates its demands – for tax breaks, among others, but also a national program of scrapping for old vehicles.
CADA President Tim Reuss said this week that the entire industry, from manufacturers and suppliers to labor unions, supports the proposal.
Remember that vehicle sales in Canada have been declining for three years, especially by 20% in 2020 due to the pandemic.
The idea behind CADA is for Ottawa to give consumers up to $ 3,000 for scrapping 12-year-old vehicles. In the current context, that would mean 2008 and older models.
This incentive would stimulate sales while replacing more obsolete and polluting vehicles with others equipped with more modern and cleaner technologies. According to the World Automakers of Canada (CMAC), up to two million old junkies could be disposed of, reducing greenhouse gas emissions by seven megatonnes.
Justin Trudeau’s administration has so far been receptive to CADA’s proposal to institute a national scrappage with compensation program, but one suspects it might want to use it to encourage purchase of electric vehicles above all.
Would that minimize the effectiveness of said program? The question is worth asking, but we know the answer from the dealers.
Pre-budget consultations will end on February 19, and the 2021 federal budget is expected to be tabled in March.
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