Automotive News Canada - November 2017 - 23
* NOVEMBER 2017
Ontario owes dealers 'serious, serious money'
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"On October 10th, they
paid a March 31st EVIP credit," she said. "On October
25th, they paid an April 29th
[credit]; on November 1st,
they paid a May 10th [credit].
But I still have two that were
submitted at the beginning of
April that have not been paid.
"We're paying interest on
DEALERS, PROVINCE MEET
The Ontario Ministry of
Transportation has pledged
to address the concerns of
those who continue to wait to
receive government rebates
on EV sales, a delay that
applies both to dealers and
to consumers, who have the
option to apply for the credit
directly. However, the details
of a plan have yet to be confirmed.
Consumers in Ontario are
entitled to receive rebates of
up to $14,000 on EV purchases. Dealers routinely discount
the value of these rebates at
point of sale and process the
applications themselves as a
value-added service to their
"We have always applied
for the customer," Budd said.
"If the consumer is taking
a lease, the credit is critical
to capitalize the lease at the
"It seems to us we should
shield the consumer from the
paperwork and administra-
If it was a consumer
claiming this, there would
be an uproar in the
newspapers. It would be
untenable. They [Ontario
us any information. They
haven't communicated to
dealers at all that there is a
Budds' Auto Groupe
tion. We would not be adding
value to the purchase if we
didn't claim on their behalf."
Frank Notte, director of
government relations for the
Trillium Automobile Dealers
Association, told Automotive
News Canada that he met
with government representatives and EV stakeholders in
late October to discuss potential resolutions.
"I think from that meeting they got the message loud
and clear that this is a huge
issue," Notte said. "[EVIP representatives] have said that
they're going to move over to
a new payment system and
hopefully get the payments
currently has eight applications that she has not submitted.
"She said we will be able
to submit them online and
we'll get our money within 30
days," Pawlak said. "They're
supposedly going to have a
system in place, hopefully in
the first week of November. I
haven't heard anything from
them, and this is November."
out much sooner.
"They also mentioned that
they're going to start processing them in batches. I don't
know if that means Dealer A
who has so many outstanding is going to get it done or,
for example, all the ones that
were received in a particular
month will be done."
Bob Nichols, senior media
liaison officer for the Ontario
Ministry of Transportation,
said that with more resources
dedicated to the program, the
province is now processing
June rebate applications.
"The Electric Vehicle
Incentive Program has experienced significant uptake of
over 100 per cent, which has
impacted application processing and payment timelines,"
"To better serve EVIP
applicants, we are dedicating
additional staff resources to
improve payment timelines
and streamline the application process. The Province
has been looking into new
forms and payment submission platforms for dealers on
a go-forward basis. Details
will be available once they
Pawlak said she was told
that an online application
system is coming and has
stopped submitting paperwork, at an EVIP representative's suggestion, until the
new system is in place. She
30-90 DAY WAIT?
Budd added that he has
heard that the updated wait
Ontario dealer Chris Budd
says that improved wait times
of 30 to 90 days are still
(PHOTO: BUDDS' GROUP)
times will be between 30 and
90 days, which he said remain
"If it was a consumer
claiming this, there would be
an uproar in the newspapers.
It would be untenable," he
said. "They haven't given us
any information. They haven't communicated to dealers at all that there is a slowdown."
"They already know the
cars that come into the province that are electric cars.
They get all the serial numbers from the manufacturers,
so one would think all they
have to do is match to make
sure it's a car that came into
Ontario and the manufacturer legally brought it in and
pay the credit.
"I hate to think what [the
amount owed] is in all of
Ontario. It must be serious,
three jurisdictions in
Canada currently offer EV
rebate incentives to consumers. In Quebec, dealers receive rebates directly from the province
under the Transportation
Electrification Action Plan
within eight to 10 weeks. In
British Columbia, applications are submitted by dealers to the province's New Car
Dealers Association, which
processes them and reimburses the amount of the incentive
via e-transfer within two to
four weeks. - ANC
APMA says adding software to tracing list addresses the future
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Many other components common in
modern vehicles, including radar and
lidar sensors, and lithium ion batteries,
are not on the tracing list.
Proponents of an updated tracing list argue that it could force automakers to source more of their software and other technology from
North American tech centers such as
Waterloo, Ont., and Silicon Valley in
"By adding software to the list,
you're capturing one of the core competencies of the American economy. The
winners and losers of the auto industry of tomorrow will be on the software
side," said Flavio Volpe, president of
the Automotive Parts Manufacturers
Association. "Silicon Valley and
Waterloo will be among the automotive
leaders of 2030."
DISPUTE OVER ELECTRONICS
Volpe said updating the list to
include software would bring the agreement back in line with where it was
when it was ratified, when the tracing
list included virtually every common
component in a vehicle.
"The original tracing list was a
reflection of automotive components at
the time in the region. It's about applying the same principle to the automobile of 2017," Volpe said.
But critics argue that updating the
tracing list to include high-end electronics and software could disrupt
global supply chains, especially considering automakers source many of these
electronics from Asia.
"Any changes to the duty-free access
and content rules will disrupt the
highly integrated supply chains and
reduce the massive benefits [of free
trade], undermining the global competitiveness of that integrated automotive industry we
talk about," said
president of the
a May address
to the House of
CVMA represents CVMA president
operations of General Motors, Ford
Motor Co. and Fiat Chrysler.
Indeed, the Detroit Three and, to a
lesser extent, Toyota and Honda have
adjusted their supply chains over
the last quarter century around free
trade among the NAFTA countries.
Automakers are increasingly relying
on lower-cost Mexico for auto production, and suppliers have opened factories near those locations to meet
demand from their customers. And as
automotive technology has advanced
while the tracing list remained the
same, NAFTA tracing requirements, in
effect, became looser.
'A QUESTION OF TECHNOLOGY'
Rob Wildeboer, chairman of
Martinrea, the third-largest Canadian
auto supplier by global sales, told
Automotive News Canada that the supplier is well positioned in any NAFTA
renegotiation scenario, seeing as many
of its plants are near the assembly
plants they supply. Still, Wildeboer
said it is in the suppliers' interests for
NAFTA negotiators to make the tracing process simpler and more streamlined.
"With respect to tracing, we would
prefer to see less bureaucracy than
more but also recognize that with technology today, we can trace things pret-
TOUGH TO TRACE
One difficulty in tracing the
national origin of parts on cars is
NAFTA's outdated tracing list.
Parts on the
* Cassette decks
* Lithium ion batteries
* CD players
* Carbon fiber
* Circuit boards
* Seat parts
ty easily," Wildeboer said. "It's just a
question of technology. We're in the
age of big data, after all."
Automotive content rules were
among several topics about which representatives for the three nations disagreed in the first several rounds of
negotiations. U.S. President Donald
Trump's administration has proposed raising the amount of NAFTAoriginated content in automotive vehicles to 85 per cent, in addition to requiring 50 per cent of a vehicle's value be
sourced from the United States.
The Trump administration's
"America First" position has frustrated
its counterparts in Canada and Mexico.
"We have seen proposals that turn
back the clock on 23 years of predictability, openness and collaboration under NAFTA," Foreign Affairs
Minister Chrystia Freeland said during
remarks following an October round of
talks in the United States.
"This is troubling."
Freeland's views were echoed by
Wildeboer, who said an American content requirement and significantly larger NAFTA requirements would do little
other than steer investment away from
all three nations and raise the price of
new vehicles in each market.
"These are proposals put out there
by a person that is not in sync with the
industry that they are purporting to
protect," Wildeboer said.
NAFTA renegotiations were set
to resume on Nov. 17. The sides were
under political pressure to get a deal
done ahead of Mexico's general elections in July and the United States'
midterm elections in November 2018.