Some car makers are miffed at the federal government for the rules they came up with (apparently with little or no warning to the industry) for the industry.
The rules for Ottawa’s Vehicle Efficiency Initiative (VEI) match rebates up to vehicles that reach a certain mileage standard and hit other vehicles with fees if they exceed a standard.
The government had few details on budget day about which vehicles would be in and which would be out but it’s not hard to figure out. Natural Resources Canada published a Fuel Consumption Guide which lists the fuel ratings for just about every vehicle sold in Canada.
[Let me digress for a second: According to that list, the annual cost for fuel for Toyota Prius owners is $738. To drive the same distance, the owner of the Lamborghini Murcielago would spend $4,260 on fuel!]
Now, matching the VEI structure up against the vehicles listed in the fuel consumption guide, I get the following results:
- Only one car — the Toyota Prius — will qualify for the full rebate of $2,000.
- Only seven cars — out of more than 560 differenct cars available for sale in Canada — qualify for a rebate of any kind and, of those seven, five are made by Toyota.
- As far as cars go, a manufacturer must have a vehicle with a combined fuel efficiency rating of 6.5 litres consumer per 100 km drive or less. The Honda Fit just misses being eligible for a $1,000 rebate: Its combined rating is 6.6L/100km. The Kia Rio and Hyundai Accent are at 6.9 L/100 km. Needless to say, Honda, Kia, and Hyundai are a little curious.
- Among the non-foreign nameplates (i.e. the Detroit-based automakers), the GM Pontiac Vibe 5–speed manual transmission is the most fuel-efficient. Mind you, the Vibe is really just a Toyota Matrix with some slightly different styling but, nonetheless, there it is at 7L/100km. The Matrix, interestingly, is rated at 7.1L/100 km.
- Cars that get hit with the maximum $4,000 levy are: Bentley Continental GT,
- The Chrysler Sebring 2.7 L, 6–cylinder, Flex Fuel Vehicle qualifies for a $1,000 rebate because it can use E85 gasoline — gasoline that contains 85 per cent ethanol. But get this: Government officials knew of only one gas station in the entire country when they included this vehicle in the regulations that sold E85 gasoline. That gas station is right here in Ottawa and it sells gas only to government of Canada vehicles. Now, if the Sebring didn’t qualify for a rebate because of its Flex Fuel Vehicle status, it would qualify for a levy (!) because when you have to fill that vehicle up with good, old-fashioned fuel, it burns 13 litres for every 100 km driven (combined rating) which would normally mean the manufacturer has to pay $1,000 Green Levy.
- Pickup trucks are exempt from the VEI program but, if they were not, not a single pickup of the 152 varieties sold in Canada would qualify for a rebate based on their mileage. The most fuel efficient in this class is the Ford Ranger 2.3 L / 4–cylinder 5–speed manual transmission which burns a combined 8.8 L per 100 km. The Big Three make several ‘Flex Fuel” pickup trucks which means they can use E85 fuel — if they can find a gas station that will sell them E85 gas. Among the non-FFV pickup trucks, the Nissan Titan 4x4 5.6 litre/8–cylinder pickup truck is the worst gas guzzler at a combined rating of 15.2L/100 km.
- Cabinet ministers were asked why pickup trucks were not included in the VEI. They said that pickup trucks are “work trucks” and they didn’t want to put another tax on business. (That’s what they said, not me!). As it turns out, only about 40 pickup trucks of the 152 sold in Canada would have been hit with a levy. Consumers would still have had plenty of pickup trucks to choose from that would not have been hit with any levy. (And is a Lincoln Mark LT 4X4 pickup truck really used for rough work on a farm or in the bush?) Even a 4.8–litre, 8–cylinder GMC Sierra (that’s a full-sized pickup truck with plenty of power) would not have paid a levy for it gets 12.9L/100 km.
Now — once again with the following caveat that as of March 26, 2007, the federal government still has not updated its list of vehicles which will be subject to the Green Levy — here’s a list of mostly SUVs that might pay a green levy based on their published fuel consumption ratings:
| Manufacturer/Make | Engine Size / Cylinders | Transmission | Combined Fuel Rating (L/100km) | Estimated Green Levy |
| AUDI Q7 | 3.6 / 6 | S6+ | 13.3 | $ 1,000 |
| AUDI Q7 | 4.2 / 8 | S6+ | 14.6 | $ 2,000 |
| BMW X5 4.8i | 4.8 / 8 | E6+ | 13.3 | $ 1,000 |
| BUICK RAINIER AWD | 4.2 / 6 | E4E | 13.0 | $ 1,000 |
| BUICK RAINIER AWD | 5.3 / 8 | E4E | 13.1 | $ 1,000 |
| CADILLAC ESCALADE AWD | 6.2 / 8 | E6E | 14.6 | $ 2,000 |
| CADILLAC SRX | 4.6 / 8 | S6E | 13.1 | $ 1,000 |
| CADILLAC SRX AWD | 4.6 / 8 | S6E | 13.3 | $ 1,000 |
| CHEVROLET SUBURBAN | 6.0 / 8 | E4E | 14.1 | $ 2,000 |
| CHEVROLET SUBURBAN 4X4 | 6.0 / 8 | E4E | 14.3 | $ 2,000 |
| CHEVROLET SUBURBAN 4X4 FFV | 5.3 / 8 | E4E | 13.2 | $ 1,000 |
| CHEVROLET SUBURBAN 4X4 FFV | 5.3 / 8 | E4E | 17.6 | $ 4,000 |
| CHEVROLET SUBURBAN FFV | 5.3 / 8 | E4E | 17.3 | $ 4,000 |
| CHEVROLET TAHOE | 4.8 / 8 | E4E | 13.4 | $ 1,000 |
| CHEVROLET TAHOE 4X4 FFV | 5.3 / 8 | E4E | 13.2 | $ 1,000 |
| CHEVROLET TAHOE 4X4 FFV | 5.3 / 8 | E4E | 17.6 | $ 4,000 |
| CHEVROLET TAHOE FFV | 5.3 / 8 | E4E | 17.3 | $ 4,000 |
| CHEVROLET TRAILBLAZER | 6.0 / 8 | E4E | 14.1 | $ 2,000 |
| CHEVROLET TRAILBLAZER 4X4 | 4.2 / 6 | E4E | 13.0 | $ 1,000 |
| CHEVROLET TRAILBLAZER 4X4 | 5.3 / 8 | E4E | 13.1 | $ 1,000 |
| CHEVROLET TRAILBLAZER AWD | 6.0 / 8 | E4E | 15.1 | $ 3,000 |
| CHRYSLER ASPEN 4X4 (MDS) | 5.7 / 8 | E5+ | 14.1 | $ 2,000 |
| DODGE DURANGO 4X4 (MDS) | 5.7 / 8 | E5+ | 14.1 | $ 2,000 |
| DODGE DURANGO 4X4 FFV | 4.7 / 8 | E5+ | 14.9 | $ 2,000 |
| DODGE DURANGO 4X4 FFV | 4.7 / 8 | E5+ | 21.4 | $ 4,000 |
| DODGE MAGNUM SRT8 | 6.1 / 8 | S5+ | 14.0 | $ 2,000 |
| FORD EXPLORER 4X4 | 4.6 / 8 | E6E | 14.2 | $ 2,000 |
| FORD EXPLORER 4X4 | 4.0 / 6 | E5E | 14.3 | $ 2,000 |
| FORD EXPLORER SPORT TRAC | 4.0 / 6 | E5E | 13.4 | $ 1,000 |
| FORD EXPLORER SPORT TRAC | 4.6 / 8 | E6E | 13.9 | $ 1,000 |
| FORD EXPLORER SPORT TRAC 4X4 | 4.6 / 8 | E6E | 14.2 | $ 2,000 |
| FORD EXPLORER SPORT TRAC 4X4 | 4.0 / 6 | E5E | 14.3 | $ 2,000 |
| GMC ENVOY 4X4 | 4.2 / 6 | E4E | 13.0 | $ 1,000 |
| GMC ENVOY 4X4 | 5.3 / 8 | E4E | 13.1 | $ 1,000 |
| GMC YUKON | 4.8 / 8 | E4E | 13.4 | $ 1,000 |
| GMC YUKON 4X4 FFV | 5.3 / 8 | E4E | 13.2 | $ 1,000 |
| GMC YUKON 4X4 FFV | 5.3 / 8 | E4E | 17.6 | $ 4,000 |
| GMC YUKON DENALI AWD | 6.2 / 8 | E6E | 14.6 | $ 2,000 |
| GMC YUKON FFV | 5.3 / 8 | E4E | 17.3 | $ 4,000 |
| GMC YUKON XL | 6.0 / 8 | E4E | 14.1 | $ 2,000 |
| GMC YUKON XL 4X4 | 6.0 / 8 | E4E | 14.3 | $ 2,000 |
| GMC YUKON XL 4X4 FFV | 5.3 / 8 | E4E | 13.2 | $ 1,000 |
| GMC YUKON XL 4X4 FFV | 5.3 / 8 | E4E | 17.6 | $ 4,000 |
| GMC YUKON XL FFV | 5.3 / 8 | E4E | 17.3 | $ 4,000 |
| HUMMER H3 4X4 | 3.7 / 5 | E4E | 13.8 | $ 1,000 |
| HUMMER H3 4X4 | 3.7 / 5 | M5+ | 14.0 | $ 2,000 |
| INFINITI FX45 AWD | 4.5 / 8 | S5 | 14.3 | $ 2,000 |
| INFINITI QX56 4X4 | 5.6 / 8 | E5 | 15.3 | $ 3,000 |
| JEEP COMMANDER 4X4 | 3.7 / 6 | E5+ | 13.0 | $ 1,000 |
| JEEP COMMANDER 4X4 (MDS) | 5.7 / 8 | E5+ | 14.1 | $ 2,000 |
| JEEP COMMANDER 4X4 FFV | 4.7 / 8 | E5+ | 13.4 | $ 1,000 |
| JEEP COMMANDER 4X4 FFV | 4.7 / 8 | E5+ | 20.6 | $ 4,000 |
| JEEP GRAND CHEROKEE 4X4 (MDS) | 5.7 / 8 | E5+ | 14.1 | $ 2,000 |
| JEEP GRAND CHEROKEE 4X4 FFV | 4.7 / 8 | E5+ | 13.4 | $ 1,000 |
| JEEP GRAND CHEROKEE 4X4 FFV | 4.7 / 8 | E5+ | 20.6 | $ 4,000 |
| JEEP GRAND CHEROKEE 4X4 SRT8 | 6.1 / 8 | E5+ | 16.9 | $ 4,000 |
| JEEP WRANGLER 4X4 | 3.8 / 6 | E4+ | 13.2 | $ 1,000 |
| JEEP WRANGLER UNLIMITED 4X4 | 3.8 / 6 | E4+ | 13.1 | $ 1,000 |
| JEEP WRANGLER UNLIMITED 4X4 | 3.8 / 6 | M6+ | 13.4 | $ 1,000 |
| LAND ROVER LR3 4X4 | 4.0 / 6 | S6 | 14.5 | $ 2,000 |
| LAND ROVER LR3 4X4 | 4.4 / 8 | S6 | 14.6 | $ 2,000 |
| LAND ROVER RANGE ROVER 4X4 | 4.4 / 8 | S6 | 14.6 | $ 2,000 |
| LAND ROVER RANGE ROVER 4X4 (high output) | 4.2 / 8 | S6 | 14.9 | $ 2,000 |
| LAND ROVER RANGE ROVER SPORT 4X4 | 4.4 / 8 | S6 | 14.4 | $ 2,000 |
| LAND ROVER RANGE ROVER SPORT 4X4 (high output) | 4.2 / 8 | S6 | 14.9 | $ 2,000 |
| LEXUS GX 470 | 4.7 / 8 | E5E | 13.5 | $ 1,000 |
| LEXUS LX 470 | 4.7 / 8 | E5E | 15.5 | $ 3,000 |
| MERCEDES-BENZ GL450 | 4.6 / 8 | E7E | 14.2 | $ 2,000 |
| MERCEDES-BENZ ML500 | 5.0 / 8 | E7E | 14.4 | $ 2,000 |
| MERCEDES-BENZ ML63 AMG | 6.2 / 8 | E7E | 17.3 | $ 4,000 |
| MERCEDES-BENZ R500 | 5.0 / 8 | E7E | 14.8 | $ 2,000 |
| MERCEDES-BENZ R63 AMG | 6.2 / 8 | E7E | 17.1 | $ 4,000 |
| NISSAN ARMADA 4X4 | 5.6 / 8 | E5 | 15.1 | $ 3,000 |
| NISSAN PATHFINDER 4X4 | 4.0 / 6 | E5 | 13.1 | $ 1,000 |
| SAAB 9-7X AWD | 4.2 / 6 | E4E | 13.0 | $ 1,000 |
| SAAB 9-7X AWD | 5.3 / 8 | E4E | 13.1 | $ 1,000 |
| TOYOTA 4RUNNER 4X4 | 4.7 / 8 | E5E | 13.1 | $ 1,000 |
| TOYOTA FJ CRUISER 4X4 | 4.0 / 6 | M6+ | 13.0 | $ 1,000 |
| TOYOTA SEQUOIA 4X4 | 4.7 / 8 | E5E | 14.1 | $ 2,000 |
| VOLKSWAGEN TOUAREG | 3.6 / 6 | S6+ | 13.3 | $ 1,000 |
| VOLKSWAGEN TOUAREG | 4.2 / 8 | S6+ | 14.6 | $ 2,000 |
| VOLVO XC90 V8 AWD | 4.4 / 8 | S6E | 13.7 | $ 1,000 |
