Retire Your Ride

Last updated

The Retire Your Ride (French: Adieu Bazou) program was a voluntary Canadian scrappage program created to reward Canadians for permanently retiring a vehicle made in 1995 or earlier for a wide range of rewards, such as a public transit pass or C$300. [1] The program ended on March 31, 2011. By January 2011, the program had surpassed its original targets and had permanently retired over 120,000 vehicles and reduced thousands of tonnes of smog-forming emissions. [2] The program was available in provinces across Canada. Some automakers had started their own complimentary auto retirement programs with rewards on top of the federal program's rewards in an effort to increase vehicle sales in Canada. [3]

Contents

Overview

On June 4, 2008 the Government of Canada announced the "National Vehicle Scrappage Program", which would create incentives for residents of Canada to trade in their old, higher-polluting vehicles to promote cleaner alternatives resulting in cleaner air and a healthier environment. [4]

The program started in February 2009 [5] with a new name, "Retire Your Ride". It was initiated by the Government of Canada, the Clean Air Foundation, and its partners with the goal to get people's high-polluting vehicles off the road, rewarding the people for doing so. The vehicles that are traded are recycled in an environment-friendly way. The program aims to retire at least 50,000 vehicles per year until March 31, 2011. [1]

Vehicles that were made in 1995 and older that are in running condition and have been registered and properly insured for the last six months are eligible for the program. Rewards for bringing those vehicles in include a public transit pass or a membership to a car-sharing program, $300 cash, or discounts on commuter bicycles. Some automotive companies (In January 2011: GM, Ford, Hyundai and Chrysler) offer an additional rebate off the purchase of a new vehicle. Some provinces offer different rewards, such as a charitable tax receipt. The program aims for vehicles built before 1995 because they produce roughly 19 times more air pollutants than newer cars and trucks. [1] The program is set to run for four years, with $92 million set aside for the program. [6]

Success

During the program's launched January to mid-August 2009, the program scrapped about 12,000 vehicles, much less than the program was hoping to achieve during those months. Ford of Canada CEO Dave Mondragon said the Canadian program was "not having [that much] of an impact" and the Canadian Automotive Dealers Association suggested in April that an incentive of $3,000 would work much better. Environment Minister Jim Prentice stated that he is looking to see if offering Canadian consumers more generous incentives will result in more participants. [7] On September 3, 2009, Prentice said that $62 million remains of the $92 million set aside for the program. [8]

As the program developed and more reward partners joined, the number of participants increased. As of October 13, 2010, Retire Your Ride had retired over 101,000 vehicles, achieving the second year's goal six months early. Retire Your Ride ended March 31, 2011. [9]

350 auto recyclers have been trained and audited in a National Code of Practice that prescribes environmental best practices for the auto recycling industry - including the removal of hazardous materials (mercury switches, batteries, etc.), dismantling of the engine, reselling of parts (not related to the engine) and how to contain environmental spills. This has expanded the capacity of the auto recycling industry's environmental practices. The Code continues on with auto recyclers as the Canadian Auto Recyclers Environmental Code (CAREC).

Increase cash incentive

Dealers and manufacturers have asked the Canadian government give consumers $3,500 towards the purchase of a new car if they bring in their old vehicle, though the government stated in June 2009 that there are no plans to expand the program. [6] Such an increase would require the government to spend $350 million on the program. If the government does increase the cash incentive, then the government could roll in the $92 million set aside for the program and would receive millions in GST on the sales of new vehicles. [10]

Richard Gauthier, president of the Canadian Automobile Dealers Association, stated in June 2009 that "the 3,500 new car dealers who are at the heart of nearly every community across Canada are struggling to survive this unprecedented economic downturn" and that increasing the cash incentive "could increase sales by as much as 100,000 units". [6] However, on September 3, 2009, Jim Prentice announced that the federal government does not have any plans on increasing the incentives. [11] Prentice also said the scrappage program was not intended to boost the struggling automotive industry during the current recession, but instead it was meant to get old, polluting vehicles off the road and help reduce vehicle emissions. [8]

Automaker response

Some automakers say that the federal government is not doing enough with the scrappage program and contrasted it with the American Car Allowance Rebate System, where people who bring in a vehicle less than 25 years old may receive US$3,500 to US$4,500 towards a new vehicle. For example, the Canadian Vehicle Manufacturers' Association, which represents General Motors, Ford, and Chrysler, says a stronger scrappage program would have provided a better boost to the economy while taking polluting vehicles off the road. As a result, some automakers have created their own programs on top of the federal scrappage program that increase cash incentives in hopes of increasing vehicle sales. [12]

On August 20, 2009 Hyundai Canada started their own program complementing Retire Your Ride. In addition to the $300 already being offered by the government, Hyundai's program offers people an extra $500 to $1,000 on a new Hyundai if they bring in a vehicle to a Hyundai dealership that was made in 1995 or older. On that day Hyundai Canada president Steve Kelleher recommended the federal government increase its incentives if it has the money, though Kelleher stressed that Hyundai Canada's program is not meant to force the government to increase cash incentives. [5]

On August 21, 2009 Chrysler Canada started a program similar to Hyundai's program. In addition to the $300 being offered by the government, people who bring a vehicle made in 1995 or older that is in running condition and has been registered and insured in Canada for the previous consecutive six or 12 months to a Chrysler dealership, then they could receive an extra $500 to $1,500 towards a new Chrysler vehicle. [13]

On September 3, 2009 Ford started its own program. In addition to the $300 being offered by the government, people who bring a vehicle made in 1995 or older that has been properly registered and insured for the last six months (12 months in British Columbia) to a Ford dealership could receive an extra $1,000 towards a new Ford or Lincoln car or compact truck, $2,000 towards a new Ford sport-utility-vehicle, or $3,000 towards a new Ford truck or Lincoln vehicle. [14]

On September 16, 2009 GM started its own scrappage program. In addition to the $300 being offered by the government, people may receive, depending on the purchase price, $500, $1,000, $2,000, or $3,000 towards 2009 or 2010 model GM if they bring a vehicle made in 1995 or older that is in running condition, registered, and properly insured for the last six months (12 months in British Columbia) to a GM dealership. [15]

Retire Your Ride continues today, operated on a voluntary basis by the Automotive Recyclers of Canada (ARC), one of the original programs key stakeholders. The Program pays cash/cheque for older vehicles that are bid on by auto recyclers accredited to the CAREC standard.

Related Research Articles

<span class="mw-page-title-main">Chicago Auto Show</span> Annual US auto show

The Chicago Auto Show is held annually in February at Chicago's McCormick Place convention center. It is the largest auto show in North America.

<span class="mw-page-title-main">Flexible-fuel vehicle</span> Vehicle that runs on multiple fuels

A flexible-fuel vehicle (FFV) or dual-fuel vehicle is an alternative fuel vehicle with an internal combustion engine designed to run on more than one fuel, usually gasoline blended with either ethanol or methanol fuel, and both fuels are stored in the same common tank. Modern flex-fuel engines are capable of burning any proportion of the resulting blend in the combustion chamber as fuel injection and spark timing are adjusted automatically according to the actual blend detected by a fuel composition sensor. Flex-fuel vehicles are distinguished from bi-fuel vehicles, where two fuels are stored in separate tanks and the engine runs on one fuel at a time, for example, compressed natural gas (CNG), liquefied petroleum gas (LPG), or hydrogen.

<span class="mw-page-title-main">Plug In America</span>

Plug In America (PIA) is a 501(c)(3) non-profit educational organization that promotes and advocates the use of plug-in cars, trucks and sports utility vehicles (SUVs) powered by domestic and renewable electricity which it claims will help reduce dependence on fossil fuels, improve the global environment and reduce greenhouse gases and climate change.

<span class="mw-page-title-main">Passenger vehicles in the United States</span>

Since 2009, the United States is home to the second largest passenger vehicle market of any country in the world, second to China. Overall, there were an estimated 263.6 million registered vehicles in the United States in 2015, most of which were passenger vehicles. This number, along with the average age of vehicles, has increased steadily since 1960. The United States is also home to three large vehicle manufacturers: General Motors, Ford Motor Company, and Chrysler, which have historically been referred to as the "Big Three".

In the automotive industry, the term Big Three is used for a country's three largest motor vehicle manufacturers, especially indicating companies that sell under multiple brand names.

The Vehicle Efficiency Incentive (VEI) was introduced in the 2007 Canadian federal government budget, aimed at promoting fuel-efficient vehicles. The VEI took effect on March 20, 2007, and it included a performance-based rebate program offering up to $2,000 for the purchase of a new fuel-efficient vehicle, a neutral treatment of a broad range of vehicles with average fuel efficiency that were widely purchased by Canadians, and a new Green Levy on fuel-inefficient vehicles.

Vehicle recycling Dismantling of vehicles for spare parts

Vehicle recycling is the dismantling of vehicles for spare parts. At the end of their useful life, vehicles have value as a source of spare parts and this has created a vehicle dismantling industry. The industry has various names for its business outlets including wrecking yard, auto dismantling yard, car spare parts supplier, and recently, auto or vehicle recycling. Vehicle recycling has always occurred to some degree but in recent years manufacturers have become involved in the process. A car crusher is often used to reduce the size of the scrapped vehicle for transportation to a steel mill.

The EcoAuto Rebate Program was a Canadian government program administered by Transport Canada to provide incentive to people to buy fuel-efficient vehicles, to protect the environment, through rebates. The program applied to vehicles purchased between March 20, 2007, and December 31, 2008. The EcoAuto Program affected eligible cars from 2006 to 2008.

The automotive industry crisis of 2008–2010 formed part of the financial crisis of 2007–2008 and the resulting Great Recession. The crisis affected European and Asian automobile manufacturers, but it was primarily felt in the American automobile manufacturing industry. The downturn also affected Canada by virtue of the Automotive Products Trade Agreement.

<span class="mw-page-title-main">Effects of the 2008–2010 automotive industry crisis on the United States</span>

Beginning in the later half of 2008, a global-scale recession adversely affected the economy of the United States. A combination of several years of declining automobile sales and scarce availability of credit led to a more widespread crisis in the United States auto industry in the years of 2008 and 2009.

A scrappage program is a government budget programme to promote the replacement of old vehicles with modern vehicles. Scrappage programmes generally have the dual aim of stimulating the automobile industry and removing inefficient, more polluting vehicles from the road. Many European countries have introduced large-scale scrappage programmes as an economic stimulus to increase market demand in the industrial sector during the global recession that began in 2008.

<span class="mw-page-title-main">Automotive industry in the United States</span>

The automotive industry in the United States began in the 1890s and, as a result of the size of the domestic market and the use of mass production, rapidly evolved into the largest in the world. The United States was the first country in the world to have a mass market for vehicle production and sales and is a pioneer of the automotive industry and mass market production process. During the course of the 20th century global competitors emerged especially in the second half of the century primarily across European and Asian markets, such as Germany, France, Italy, Japan and South Korea. The U.S. is currently second among the largest manufacturer(s) in the world by volume.

The UK vehicle scrappage scheme is a scrappage scheme that was introduced in the 2009 United Kingdom Budget to encourage British motorists to purchase a new, more environmentally-friendly car or van and scrap an older, more polluting one that they have owned for more than twelve months. The scheme was extended in September 2009 and again in February 2010 and it finished at the end of March 2010. In February 2010, a separate Plug-in Car Grant to provide £5,000 towards the cost of electric vehicles was announced and it began in January 2011.

<span class="mw-page-title-main">Car Allowance Rebate System</span> US federal incentives program for consumer fuel efficiency boosts

The Car Allowance Rebate System (CARS), colloquially known as "cash for clunkers", was a $3 billion U.S. federal scrappage program intended to provide economic incentives to U.S. residents to purchase a new, more fuel-efficient vehicle when trading in a less fuel-efficient vehicle. The program was promoted as a post-recession stimulus program to boost auto sales while putting more fuel-efficient vehicles on the roadways.

This article provides an overview of the automotive industry in countries around the world.

The Canadian auto industry is closely linked to the U.S., due to the Automotive Products Trade Agreement and later the North American Free Trade Agreement (NAFTA), and is in similar trouble. Canada's 3,500 car dealers, which employ 140,000 people, told the federal and Ontario governments in mid-November they are at risk from the financial crisis; they are asking the national government to help out despite a record year of sales. Ottawa is considering providing financial aid to the Canadian subsidiaries of the Big Three, and possibly auto parts companies as well. The auto industry argued that loan guarantees and other help would try to save tens of thousands of Canadian jobs threatened by the sudden drop in North American car sales. Chrysler Canada has asked for $1 billion in aid, making it the only Canadian arm of the Big Three to make a specific dollar request.

<span class="mw-page-title-main">Government incentives for plug-in electric vehicles</span>

Government incentives for plug-in electric vehicles have been established around the world to support policy-driven adoption of plug-in electric vehicles. These incentives mainly take the form of purchase rebates, tax exemptions and tax credits, and additional perks that range from access to bus lanes to waivers on fees. The amount of the financial incentives may depend on vehicle battery size or all-electric range. Often hybrid electric vehicles are included. Some countries extend the benefits to fuel cell vehicles, and electric vehicle conversions.

South Africa is traditionally the leader in Africa of the automotive industry and now produces more than half a million automobiles annually of all types. While domestic development of trucks and military vehicles exists, cars built under license of foreign brands are the mainstay.

<span class="mw-page-title-main">Automotive industry in the Philippines</span> Overview of the automotive industry in the Philippines

The automotive industry in the Philippines is the 9th largest in the Asia-Pacific region, with approximately 273.4 thousand vehicles sold in 2019. Most of the vehicles sold and built in the Philippines are from foreign brands. For the most part, the Philippines is dominated by Japanese automobile manufacturers like most of its ASEAN neighbors. The automobile production in the country is covered under the Philippine Motor Vehicle Development Program implemented by the Board of Investments. In addition, there are also a small number of independent firms who assemble and fabricate jeepneys and other similar vehicles, using surplus engines and drivetrain parts mostly from Japan.

References

  1. 1 2 3 "About The Program". Retire Your Ride. Retrieved 2009-08-19.
  2. ↑ "Retire Your Ride - Canada's Vehicle Recycling Program". Retire Your Ride. Retrieved 2009-09-04.
  3. ↑ "GM Canada to offer rebate cash for clunkers". CTV. 2009-09-16. Retrieved 2009-09-18.
  4. ↑ "Canada 's New National Vehicle Scrappage Program". ecoACTION. 2008-07-04. Archived from the original on 2010-01-22. Retrieved 2009-09-04.
  5. 1 2 "Hyundai looks to cash in on clunkers". Toronto: The Globe and Mail. 2009-08-21. Archived from the original on August 22, 2009. Retrieved 2009-09-04.
  6. 1 2 3 "Support car sales with $350M 'scrappage' program, auto industry pleads". CBC.ca. 2009-06-05. Retrieved 2009-08-19.
  7. ↑ "U.S. 'cash for clunkers' outpaces Canadian plan". CBC.ca. 2009-08-19. Retrieved 2009-08-19.
  8. 1 2 "No plans to boost vehicle scrappage program: Prentice". CTV.ca. 2009-09-03. Retrieved 2009-09-04.
  9. ↑ "Retire Your Ride - Canada's Vehicle Recycling Program". www.retireyourride.ca. Archived from the original on 2009-03-07.
  10. ↑ "Car makers urge feds to help people buy more cars". CTV.ca. 2009-06-05. Retrieved 2009-08-19.
  11. ↑ "No expanded car scrappage program: Prentice". CBC.ca. 2009-09-03. Retrieved 2009-09-04.
  12. ↑ "Detroit Three disappointed with Canada's clunkers program". Toronto Sun. 2009-09-04. Archived from the original on 2009-09-06. Retrieved 2009-09-04.
  13. ↑ "Chrysler Canada joins Cash for Clunkers program". Toronto: The Globe and Mail. 2009-08-21. Retrieved 2009-09-04.
  14. ↑ "Ford Canada boosts retire-your-ride program". Ottawa Citizen. 2009-09-02. Retrieved 2009-09-04.
  15. ↑ "GM offers $3,000 for Canadian clunkers". CBC.ca. 2009-09-16. Retrieved 2009-09-18.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.