Premier Doug Ford pitching Ontario as electrical automobile chief, however not reintroducing rebates


TORONTO — Doug Ford is pitching Ontario as the subsequent electrical automobile manufacturing powerhouse, seemingly a far cry from the premier who three years in the past cancelled incentives for folks to purchase them.

The place some see contradiction, others see calculated election technique.

Shortly after coming to energy in 2018, Ford’s authorities scrapped Ontario’s cap-and-trade system, and with it the electrical automobile rebates funded by that program.

He additionally stopped constructing charging stations — the provincial transit company even eliminated some — and dropped a requirement for brand new properties to incorporate the wiring for potential EV chargers.

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Ford on the time decried the rebates of as much as $14,000 as subsidizing purchases for rich consumers — and he nonetheless does, principally.

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“Earlier than the election I didn’t imagine in giving millionaires rebates on over $100,000 Tesla automobiles,” he stated final month. “I simply didn’t imagine in it. Let’s see how the market dictates.”

Within the 12 months after the rebate cancellations, the marketplace for electrical autos tanked in Ontario. At its highest level, electric-vehicles made up round three per cent of the province’s whole passenger automobile gross sales. That dropped to beneath one per cent after the rebate was scrapped.

The introduction of a federal rebate noticed Ontario’s electric-vehicle gross sales start to climb once more. The latest information from Statistics Canada places the numbers again to just about the place they had been earlier than the provincial cancellation.

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However that’s nonetheless properly beneath ranges seen in provinces with their very own rebates, akin to British Columbia and Quebec, that are seeing electric-vehicle gross sales of about 13 per cent and 10 per cent, respectively.

Electrical-vehicle advocates say Ontario can’t be a frontrunner in manufacturing whereas being a laggard in gross sales.

Joanna Kyriazis, senior coverage adviser at Clear Power Canada, stated a lately introduced Ontario auto technique was extra pleasant to electrical autos than she would have anticipated, nevertheless it’s lacking the second half of the equation.

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“I do assume that there’s been a current shift within the Ford authorities’s view of electrical autos, at the least on the manufacturing facet,” she stated.

Ontario’s “Driving Prosperity” plan focuses on repositioning the province’s auto sector to construct electrical autos, in addition to establishing battery manufacturing right here, profiting from essential minerals discovered within the Ring of Fireplace. It goals to construct at the least 400,000 electrical autos and hybrids by 2030.


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Ontario has secured investments from large automakers akin to Ford and GM to construct new electrical autos at their services within the province within the coming years, and the premier is trying to entice extra.

“Our authorities is aware of it and the auto trade is aware of it: Ontario is the No. 1 place on this planet to construct the automobiles and vans of the longer term,” Ford stated when he introduced the technique final month.

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There’s a part on encouraging electrical automobile adoption, however is generally restricted to establishing a Transportation Electrification Council to hunt recommendation on methods to do this. With out extra work to encourage home gross sales, a lot of the electrical autos ultimately produced in Ontario would simply be shipped elsewhere, Kyriazis stated.

“Producing extra EVs in Ontario won’t immediately translate into extra EV gross sales in Ontario except there’s extra help for customers to go electrical,” she stated.

Appearing on the manufacturing facet however not the buyer facet is contradictory, stated Daniel Breton, president and CEO of Electrical Mobility Canada.

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“If Ontario needs to be a frontrunner, it’s not a buffet the place you choose and select what you resolve to do,” he stated.

“Rebates do make a distinction. They don’t must be $14,000, but when folks see a good rebate and even tax credit score I believe it does make a distinction, not solely in a monetary viewpoint. There’s a social viewpoint that claims the federal government ? is de facto selling the transition to electrical autos.”

However the political intention of this authorities, strategists say, is the give attention to jobs.

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Ford is attempting to safe manufacturing in areas like Oakville and Windsor, whereas Liberals have a look at the problem by means of a shopper and environmental lens, stated Andrew Steele, a vice-president at consulting agency StrategyCorp.

“Should you’re it as, ‘I would like these sorts of jobs to remain right here in Ontario, that’s my essential preoccupation,’ you’re going to spend time desirous about incentives to convey jobs right here,” stated Steele, a former senior Liberal staffer.


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“I believe (Ford’s) agnostic to gas sort. That’s the place the market goes, so we have to get there for jobs.”

David Tarrant, Ford’s former government director of strategic communications, stated there’s a “highly effective end-to-end story” Ford can inform about electric-vehicle manufacturing in Ontario, beginning with the essential minerals discovered within the Ring of Fireplace.

It additionally provides Ford the chance, within the run-up to the June election, to speak about manufacturing job losses below the previous Liberal authorities, and their closely criticized rebates that went to drivers of luxurious electrical autos, he stated.

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“What we’re speaking about is how Ontario from the manufacturing facet and the availability facet can really drive and help this sort of revolution in electrical autos, create a bunch of jobs ? somewhat than utilizing Ontario taxpayers’ cash to help the acquisition of autos that had been manufactured elsewhere,” stated Tarrant, now a vice-president at Enterprise, a strategic communications agency.

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Jeff Crumb and his household outdoors Kitchener, Ont., are available in the market for a brand new automobile and are leaning towards electrical. He stated the selection could be lots simpler if there was a provincial incentive to chop the acquisition value.

“If there was a rebate in place it might be a no brainer. We might do it instantly,” he stated.

An election promise from the Ontario Liberals caught Crumb’s eye, although he’s not capable of wait to see the end result of the June 2 vote earlier than making his subsequent automobile buy.

The Liberals are promising a rebate of as much as $8,000 on electrical autos that value as much as $55,000. The New Democrats are promising so-far unspecified rebates for non-luxury electrical autos.

“When the value of an electrical automobile is, you already know, 10 or 15 or $20,000 greater than a gas-powered automobile, it does make that call actually robust,” Crumb stated.

© 2021 The Canadian Press



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