For immediate release
Langley, BC – The New Car Dealers Association of BC (NCDA) is encouraging the new NDP administration and new ministers in key Cabinet portfolios to apply a fresh set of eyes to a host of concerns that impact affordability – a central issue of the recent provincial election campaign.
Coming off an election victory with a razor-thin majority, Premier David Eby unveiled a new Cabinet that he suggested, is ready to listen to British Columbians and deliver on the core challenges people are facing.
In response to that challenge, the NCDA has communicated to government, several issues requiring their attention – and more importantly, action. Ministers that will be key points of contact include Adrian Dix (Energy and Climate Solutions), Brenda Bailey (Finance), and Anna Kang (Post Secondary Education and Future Skills).
First and foremost are rigid policies associated with the Zero-Emission Vehicle Act. The framework includes significant financial penalties on auto makers ($20,000 per vehicle) for failing to meet mandated targets requiring 26% of light-duty vehicles sold in BC be ZEVs by 2026, 90% by 2030 – and 100% by 2035.
While these time frames may appear far down the road, the reality is that automakers make investment and business decisions well in advance. As a result, the prospect of major penalties within a fairly tight window has some manufacturers already threatening to reduce allocation of all vehicles (including gas powered) by 15-20 percent as early as January, in order to meet mandate quotas.
“Without Minister Dix and government adopting a level of flexibility, it can be expected that the majority, if not all automakers, will reduce supply to meet quotas. It will be consumers who pay in the end because limiting inventory means a higher price point for all new and used vehicles, as we experienced during the pandemic,” said Blair Qualey, President and CEO of the NCDA.
“We hope Mr. Dix will bring new perspective to an issue that may have serious implications for our sector, the economy – and most importantly, BC consumers,” added Qualey.
Other key issues highlighted by the New Car Dealers include:
Restoring sustainable electric vehicle incentives to pre-pandemic levels. Continued financial incentives for all-electric vehicle purchases are essential to encourage consumer adoption and support the growth of the ZEV market while the differential continues between the price of ZEVs and their gas equivalents.
Increasing Annual Funding for Electric Vehicle Fast-Charging Infrastructure. Simply put, sustained and increased funding for province-wide electric vehicle infrastructure is vital to long-term ZEV adoption.
Raising the BC Luxury Vehicle Tax (PST) Threshold to at least $100,000. The current B.C. luxury tax on vehicles kicks in at a $55,000 purchase price (set back in 2006), while the average cost of a new vehicle has now reached $66,000. The current threshold captures many vehicles that are not luxury items – such as family vans or SUVs to transport children to activities, or pickup trucks that may be required for work or as a lifestyle preference, particularly in rural or isolated settings.
Increased investments in Post-Secondary Education for the Automotive Sector through the BC Jobs Fund. Investing in education and training is crucial for the continued growth and success of the automotive sector, and government’s desire to increase zero emission vehicle adoption. By increasing funding in post-secondary programs focused on automotive technologies and services, we can ensure a well-trained workforce capable of meeting the demands of this evolving industry and contributing to the broader provincial economy.
“The Premier has suggested he and his Cabinet are ready to listen and deliver on the challenges British Columbians are facing. We will be counting on the new administration to live up to those words,” concluded Qualey.
About the NCDA: The New Car Dealers Association of BC (NCDA) represents over 400 new car and truck dealers throughout British Columbia who support 30,000 family supporting jobs and are responsible for close to $17 billion in retail sales in the province. The Association speaks on behalf of the retail automotive industry and advocates on legal, environmental, and consumer issues relating to vehicle sales in British Columbia.
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Contact:
Kelly Gleeson
604-240-6231
[email protected]
