Automotive News Canada - May 2023 - 1
FUTURE SHOWROOMS:'EVERYBODY WANTS WHAT APPLE HAS'/P8
MAY 2023 | VOL. 7, NO. 5 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION
45% of used-vehicle loans are 84 months, up from 25% in 2021
By DAVID KENNEDY
T ORONTO BUREAU CHIEF
RISING INTEREST RATES AND HIGH
prices are pushing more used-vehicle
buyers into " frighteningly " lengthy loans,
stretching consumer budgets while creating
both opportunities and risks for
Canadian automobile dealers.
Used-vehicle loans with financing
terms of 84 months now account for about
'Term stretch' is being
used by buyers to maintain
a monthly payment
as vehicle prices and
borrowing costs increase
45 per cent of the used-vehicle market, up
from 38 per cent last year and 25 per cent
in 2021, said Robert Karwel, senior manNew
Quebec ZEV mandate:
Tougher, or
out of touch?
The province wants to accelerate
adoption, but the industry fears
the cost, including pollution
imported brands.
By LOUIS-PHILIPPE DUBÉ
MONTREAL CORRESPONDENT
THE QUEBEC GOVERNMENT
says its plan to toughen
zero-emission-vehicle (ZEV) regulations
will boost sales of electric
vehicles, but industry stakeholders
warn that the changes
could hamper vehicle affordability
and keep older, more polluting
cars on the road longer.
" Automakers don't disagree
with the ultimate goal, which is
to reduce emissions, " said David
Adams, president of the Global
Automakers of Canada (GAC),
which represents the interests of
QUEBEC'S TOUGHER
ZEV SALES MANDATES
Draft legislation to increase ZEV
sales in Quebec significantly
outpaces proposed federal
mandates. For Quebec, a 45-day
consultation process is under way
and ends June 16.
Model
year
Proposed
federal
2025 -
2026
2027
2028
2029
2030
2031
2032
2033
2034
20%
23%
34%
43%
60%
74%
83%
94%
97%
Current
Quebec
Proposed
Quebec
22% 22%
26% 32.5%
34% 45%
43% 60%
53% 75%
65% 85%
77.5% 91%
87.5% 95%
94% 97.5%
98.5% 99%
2035 100% 100% 100%
Sources: Government of Canada,
Government of Quebec
AUTOMOTIVE NEWS CANADA
" What's problematic here
is the approach. With these
revised targets, some manufacturers
who have the lowest
new-vehicle average emissions
will be taxed because they are
not putting enough EVs on the
market. "
The current Quebec sales
mandates are already more
aggressive than the proposed
federal mandates and the new
provincial targets widen that
spread significantly. For example,
the federal ZEV target for
2027 is 23 per cent, the current
mandate in Quebec is 34 per
cent and the newly proposed
mandate is 45 per cent. For
2030, the federal target is 60 per
cent, the current Quebec target
is 65 per cent and the proposed
mandate is 85 per cent.
" By accelerating the implementation
of the standard, we
want to improve the offer of
electric models to Quebecers, "
provincial Environment
Minister Benoit Charette said
in a statement.
The province on May 3 initiated
a 45-day consultation period,
which ends June 16.
COUNTING CREDITS
Since the province's ZEV
mandate took effect in 2018,
automakers that sell vehicles
in Quebec have been required
to accumulate credits by supplying
ZEVs or low-emission
vehicles (LEVs) to the Quebec
market. This credit target is
calculated according to a perSEE
QUEBEC PAGE 29
PHOTO: DAVID KENNEDY
Prime Minister Justin Trudeau
at the plant announcement
in St. Thomas, April 21.
Karwel: Higher
used-vehicle prices are
forcing customers to buy
out-of-warranty vehicles,
leading many to purchase
service contracts from
dealers. FILE PHOTO
ager of J.D. Power's Canadian automotive
practice.
" You only increase your amortization
for one reason: It's to maintain a lower
monthly payment to maintain the family
budget, " Karwel said.
J.D. Power collects used-vehicle data
from franchised dealers and a number of
used-vehicle centres, Karwel said. That
means the sample skews to the " newer
and nicer " side of the used-vehicle market,
with most vehicles up to eight years
old.
But longer loans are becoming more
SEE LONGER TERMS PAGE 29
SPECIAL REPORT/P18-20
UNPACKING THE
7B
VOLKSWAGEN GROUP
BATTERY PLANT
$7B
* 'Billion-dollar-plus' suppliers are next
* Government money was the carrot
* Plant is a tipoff to VW's sales aspirations
* Local effort was key to a national win
* 30,000 jobs: An unsupported claim
http://www.AUTOMOTIVENEWS.CA
http://www.diskloz.ca
Automotive News Canada - May 2023
Table of Contents for the Digital Edition of Automotive News Canada - May 2023
Automotive News Canada - May 2023 - Intro
Automotive News Canada - May 2023 - CT
Automotive News Canada - May 2023 - CT1
Automotive News Canada - May 2023 - 1
Automotive News Canada - May 2023 - 2
Automotive News Canada - May 2023 - 3
Automotive News Canada - May 2023 - 4
Automotive News Canada - May 2023 - 5
Automotive News Canada - May 2023 - 6
Automotive News Canada - May 2023 - 7
Automotive News Canada - May 2023 - 8
Automotive News Canada - May 2023 - 9
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Automotive News Canada - May 2023 - 14
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Automotive News Canada - May 2023 - 16
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Automotive News Canada - May 2023 - 18
Automotive News Canada - May 2023 - 19
Automotive News Canada - May 2023 - 20
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Automotive News Canada - May 2023 - 33
Automotive News Canada - May 2023 - 34
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