GUNTER: Another costly Liberal solution to a non-existent problem
Toronto Sun #TorontoSun
Breadcrumb Trail Links
Get the latest from Lorne Gunter straight to your inbox Sign Up
Published Dec 19, 2023 • 3 minute read
Close up of charging electric car in the winter with snow outside. Photo by File photo /Postmedia
Trust the Trudeau government to pick the wrong solution to the wrong problem.
Advertisement 2
This advertisement has not loaded yet, but your article continues below.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
REGISTER TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
Article content
Most headlines about Tuesday’s announcement regarding electric vehicle (EV) sales in Canada had pretty much the same theme: Environment Minister Steven Guilbeault announced that 20% of all new vehicles sold in Canada “must be” EVs by 2026.
Article content
That’s at least double the share now. So, what is Guilbeault’s strategy for pulling off this radical transformation? He plans to reduce the time consumers must wait for delivery of electric cars. According to the brains trust in Ottawa, buyers are shying away from EVs because they have to wait too long for them to show up.
That might have been the problem two or three years ago, but now the reverse is true. Now, dealers across the country have unsold EVs piling up on their lots because automakers overestimated consumer demand, made too many of them and ended up shipping the extras to dealerships whether the retailers wanted them or not. There are now too many EVs and not enough customers.
Your Midday Sun
Thanks for signing up!
Article content
Advertisement 3
This advertisement has not loaded yet, but your article continues below.
Article content
Ford and General Motors have announced huge reductions in EV production because consumer demand just isn’t there.
Trust the Liberal government to propose a costly solution to a problem that no longer exists.
Admittedly, the third quarter of 2023 was good for EV sales in Canada. Of nearly 500,000 new vehicles sold from July through September, about one in 10 (10%) was an EV.
The problem is, one quarter does not a trend make. The other problem is, most of those EV sales were in two regions — the Montreal-Ottawa-Toronto triangle and greater Vancouver, i.e. places with higher-than-average incomes and milder winters.
Electrics are still not practical in most of the country, nor for average Canadians.
RECOMMENDED VIDEO
Advertisement 4
This advertisement has not loaded yet, but your article continues below.
Article content
We apologize, but this video has failed to load.
Play Video
Is it possible even more and costlier taxpayer subsidies could double EV sales over the next two years? I suppose. But it’s also possible that, because much of the 63% jump in EV sales last quarter was due to the introduction of just one model — the Tesla Y — it will be difficult to match third-quarter sales going forward without similar superstar models being introduced three or four times a year.
That has certainly been the case in the U.S.
Because Americans have more warm-weather markets than Canada, they have been ahead of us on the EV curve. They’ve had periods in which electric sales surged, but for most of the past year-and-a-half, EV sales in the U.S. have flat-lined.
The problem is, EVs remain too expensive for middle-class buyers. Once manufacturers satisfy the demand of wealthier customers for EVs as symbols of their upper-middle-class eco commitment, there is far less uptake among people earning under $100,000 or more.
Advertisement 5
This advertisement has not loaded yet, but your article continues below.
Article content
Last year, our federal Natural Resources department even admitted the push for all new vehicle sales to be EVs by 2035 would make cars and light trucks too expensive for 25% of Canadians. When it is no longer possible to buy internal-combustion engine (ICE) vehicles, one-quarter of Canadians will just have to go without cars. That doesn’t seem to bother Guilbeault, Trudeau or their pals in the environmental movement.
Also, contrary to Liberal hype, EVs not only cost more to buy, they cost more to maintain and repair. Their range between charges is poor in the winter and recharging times are long.
Consumer Reports magazine recently found EVs are 73% less reliable than gasoline and diesel vehicles. Because they are so much heavier, they chew through tires 40% faster. When they are in collisions, they cause more damage and are more expensive to repair, so are costlier to insure.
Contrary to Liberal bumph, over their lifetimes, they are not cheaper than internal combustion engine vehicles.
And don’t forget, we aren’t building new power plants fast enough to charge them all.
Aside from that, Guilbeault’s mandate is brilliant.
Article content
Share this article in your social network