By Blair Qualey
On the eve of a provincial general election, BC’s New Car Dealers (NCDA) are highlighting issues that demand the attention of political parties and candidates because of their impact on consumers, the economy, and over 400 dealerships in communities across this province that employ some 30,000 British Columbians.
We believe an election campaign, whether it be local, provincial or federal is not something our Association and dealer members take lightly. In every respect, it serves as an opportunity to encourage candidates to work with us and create win-win approaches that support our sector and the economy, while reinforcing the leadership role of our members in areas that include transitioning consumers to zero emission vehicles.
Among the key issues and areas of concern our Association will be highlighting during the campaign:
BC’s New Car Luxury Tax extends to vehicles that are by no means a luxury item; trucks, minivans and SUVs that British Columbians rely on to shuttle their children around, or for work. Today, the average cost of a new vehicle is $66,000, while the threshold for BC’s Luxury Tax is $55,000. The additional cost is pushing the price of a new vehicle beyond the reach of many families – and if government won’t remove this regressive tax, it must be addressed by adjusting the threshold to a much higher level.
The CleanBC Go Electric Passenger Vehicle Rebate Program makes zero emission vehicles more affordable. However, recent program changes have removed 75% of vehicles previously eligible for a provincial rebate. While there is a price differential between EVs and their gas equivalents, the NCDA is recommending adequate rebate levels be reinstituted.
BC’s mandated annual sales targets for Zero Emission Vehicles (ZEVs) are accompanied by significant financial penalties (up to $20,000 per gas vehicle) when arbitrary sales targets aren’t met by manufacturers. This policy may have been appropriate early in the roll out of EVs, but manufacturers have invested billions of dollars to develop EV models that dealers’ lots are full of. This supply side regulation no longer helps ensure more electric vehicles on the road. To the contrary, it will increase the cost of all vehicles. As the early adopters of EVs have made their market choice, regular consumer demand for EVs has softened – because of price, range anxiety, access to convenient charging infrastructure (especially if they live in rural or remote areas), along with recent changes to the rebate program that removed three-quarters of eligible vehicles. The NCDA is encouraging government to support the demand side to help consumers make the switch.
Ensuring Zero Emission Vehicle (ZEV) drivers have access to reliable fast charging infrastructure where they live, work and travel improves the practicality of choosing a ZEV. If we want everyone driving an EV, adequate and reliable charging options must be available to British Columbians.
BC’s automotive sector is facing a wave of retirements in the coming decade and there is a lack of programs and spaces in post-secondary institutions to train the next generation of industry workers like service technicians who repair the more advanced vehicles and EVs today.
Our collective message to would-be MLAs and their political parties is that through action, we can ensure a brighter future for new car dealers, staff and communities in which they operate.
We are fortunate to live in a province and country where we are free to cast a democratic vote. Regardless of one’s political persuasion, we all have a stake in the future of our province, and the NCDA has encouraged all British Columbians of voting age to be an active participant in our democratic process.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected]
