Retire Your Ride
Encyclopedia
The Retire Your Ride program is a voluntary Canadian
scrappage program
created to reward Canadians for permanently retiring in a vehicle
made in 1995 or earlier for a wide range of rewards, such as a public transit
pass or C$
300. 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. The program is available in province across Canada. Some automakers have 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.
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.
The program started in February 2009 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.
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. The program is set to run for four years, with $92 million set aside for the program.
stated that he is looking to see if offering Canadian consumers more generous incentives will result in more participants. On September 3, 2009, Prentice said that $62 million remains of the $92 million set aside for the program.
As the program developed and more reward partners joined, the number of participants increased. As of October 13, 2010, Retire Your Ride had retired over 101,000 vehicles, achieving the second year's goal six months early. Retire Your Ride will end March 31, 2011.
350 auto recyclers have been trained and audited in a National Code of Practice that prescribes environmental best practices for the auto recycling industry - including the removal of hazardous materials (mercury switches, batteries, etc.), dismantling of the engine, reselling of parts (not related to the engine) and how to contain environmental spills. This has expanded the capacity of the auto recycling industry's environmental practices.
on the sales of new vehicles.
Richard Gauthier, president of the Canadian Automobile Dealers Association, stated in June 2009 that "the 3,500 new car dealers who are at the heart of nearly every community across Canada are struggling to survive this unprecedented economic downturn" and that increasing the cash incentive "could increase sales by as much as 100,000 units". However, on September 3, 2009, Jim Prentice
announced that the federal government does not have any plans on increasing the incentives. Prentice also said the scrappage program was not intended to boost the struggling automotive industry
during the current recession, but instead it was meant to get old, polluting vehicles off the road and help reduce vehicle emissions
.
Car Allowance Rebate System
, where people who bring in a vehicle less than 25 years old may receive US$
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 provide 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.
On August 20, 2009 Hyundai Canada
started their own program complimenting 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.
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.
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.
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 $3,000 towards 2009 or 2010 model GM if they bring a vehicle made in 1995 or older that is in running condition, registered, and properly insured for the last six months (12 months in British Columbia
) to a GM dealership.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
scrappage program
Scrappage program
A scrappage program is a government budget program to promote the replacement of old vehicles with modern vehicles. Scrappage programs generally have the dual aim of stimulating the automobile industry and removing inefficient, high emissions vehicles from the road...
created to reward Canadians for permanently retiring in a vehicle
Vehicle
A vehicle is a device that is designed or used to transport people or cargo. Most often vehicles are manufactured, such as bicycles, cars, motorcycles, trains, ships, boats, and aircraft....
made in 1995 or earlier for a wide range of rewards, such as a public transit
Public transport
Public transport is a shared passenger transportation service which is available for use by the general public, as distinct from modes such as taxicab, car pooling or hired buses which are not shared by strangers without private arrangement.Public transport modes include buses, trolleybuses, trams...
pass or C$
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
300. 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. The program is available in province across Canada. Some automakers have 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.
Overview
On June 4, 2008 the Government of CanadaGovernment of Canada
The Government of Canada, formally Her Majesty's Government, is the system whereby the federation of Canada is administered by a common authority; in Canadian English, the term can mean either the collective set of institutions or specifically the Queen-in-Council...
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.
The program started in February 2009 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.
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
Provinces and territories of Canada
The provinces and territories of Canada combine to make up the world's second-largest country by area. There are ten provinces and three territories...
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. The program is set to run for four years, with $92 million set aside for the program.
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 PrenticeJim Prentice
James "Jim" Prentice, PC, QC is a Canadian lawyer, and politician. In the 2004 federal election he was elected to the Canadian House of Commons as a candidate of the Conservative Party of Canada...
stated that he is looking to see if offering Canadian consumers more generous incentives will result in more participants. On September 3, 2009, Prentice said that $62 million remains of the $92 million set aside for the program.
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 will end March 31, 2011.
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.
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. 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 GSTGoods and Services Tax (Canada)
The Goods and Services Tax is a multi-level value added tax introduced in Canada on January 1, 1991, by then Prime Minister Brian Mulroney and his finance minister Michael Wilson. The GST replaced a hidden 13.5% Manufacturers' Sales Tax ; Mulroney claimed the GST was implemented because the MST...
on the sales of new vehicles.
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". However, on September 3, 2009, Jim Prentice
Jim Prentice
James "Jim" Prentice, PC, QC is a Canadian lawyer, and politician. In the 2004 federal election he was elected to the Canadian House of Commons as a candidate of the Conservative Party of Canada...
announced that the federal government does not have any plans on increasing the incentives. Prentice also said the scrappage program was not intended to boost the struggling automotive industry
Automotive industry
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue....
during the current recession, but instead it was meant to get old, polluting vehicles off the road and help reduce vehicle emissions
Automobile emissions control
Vehicle emissions control is the study and practice of reducing the motor vehicle emissions -- emissions produced by motor vehicles, especially internal combustion engines....
.
Automaker response
Some automakers say that the federal government is not doing enough with the scrappage program and contrasted it with the AmericanUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Car Allowance Rebate System
Car Allowance Rebate System
The Car Allowance Rebate System , colloquially known as "Cash for Clunkers", was a $3 billion U.S. federal scrappage program intended to provide economic incentives to U.S. residents to purchase a new, more fuel-efficient vehicle when trading in a less fuel-efficient vehicle...
, where people who bring in a vehicle less than 25 years old may receive US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
3,500 to US$4,500 towards a new vehicle. For example, the Canadian Vehicle Manufacturers' Association, which represents General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
, Ford
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
, and Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
, says a stronger scrappage program would have provide 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.
On August 20, 2009 Hyundai Canada
Hyundai Motor Company
Hyundai Motor Company is a Korean multinational automaker based in Seoul, South Korea which, along with Kia, comprises the Hyundai Kia Automotive Group, the world's fourth largest automaker as of 2009. As of 2011, it is the world's fastest growing automaker for two years running...
started their own program complimenting 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.
On August 21, 2009 Chrysler Canada
Chrysler Canada
Chrysler Canada Incorporated is Chrysler's Canadian subsidiary. Incorporated in 1925, the Chrysler Corporation of Canada gained complete control of a Maxwell-Chalmers plant in Windsor Ontario that had been used to manufacture some Chrysler models in the previous year...
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.
On September 3, 2009 Ford
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
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
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
) 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.
On September 16, 2009 GM
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
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
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
) to a GM dealership.