For Immediate Release
March 19, 2009

TURN LEMONS INTO LEMONADE, PC CAUCUS SAYS
Budget should include real relief to help Ontario consumers and struggling auto sector

(Queen’s Park) – An incentive program to get old cars off the road and stimulate sales of new cars is just what Ontario’s economy and environment need, members of the Ontario PC Caucus said today.

“It’s clear Dalton McGuinty needs to take a new path toward fuelling Ontario’s economic engine,” said Hudak. “This program would give Ontario families a real incentive to start buying again.”  

PC Economic Development & Trade Critic Ted Chudleigh (Halton) and Finance Critic Tim Hudak (Niagara West-Glanbrook) urged the McGuinty Liberals to use next week’s budget to implement a ‘Retire-Your-Ride’ program. The initiative, in partnership with a similar Federal program, would give Ontario drivers $2,000 towards the purchase or lease of a new car after turning in their vehicle of ten years old or older.

Currently, there are over two million pre-1997 model year cars on Ontario roads. That is one-third of all active vehicles in the province.

“Not only would this program potentially boost auto sales, create jobs and spur our economy forward but it would also get many high-polluting, old clunkers off Ontario roads,” added Chudleigh.

The Ontario Automobile Dealer Association also supports the idea.

"An effective scrappage program will benefit the environment, make our roads safer and will stimulate new automobile sales. Taking one 1987 model year automobile off the road will reduce smog emissions by an equivalent of thirty-seven 2007 model year automobiles," said Geoff Wilkinson, Executive Director of the Ontario Automobile Dealer Association.
“Nearly 300,000 manufacturing jobs have disappeared from Ontario under the Liberals' watch," said Hudak. “Practical steps like the 'Retire-Your-Ride' program are tangible efforts that can help out Ontario families during difficult times."

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For more information:
Jennifer Reid
(416) 325-1330
Michelle Pennell
(416) 325-9109

BACKGROUNDER

OTHER JURISDICTIONS AHEAD OF THE CURVE…
Canadian Government – The ‘Retire-Your-Ride’ Program

• The program allows consumers to trade-in their old clunkers for discounts on public transit passes, bicycles, membership in car-sharing programs or $300 in cash.
  
  
• It involves $92-million in government funding until March 31, 2011

British Columbia – ‘Scrap It’ Program

• The program offers up to $2,000 towards a new car for pre-1995 vehicles, subject to conditions
  
  
• The car must be insured in the province for the last 12 months continuously and must be in driving condition
  
  
• The incentive program is directly tied to the net C02 reduction in the vehicle being purchase or retired.
  

Germany – The Merkel Plan

• The program offers €2500 (equivalent to almost $4,000 Canadian) to consumers that scrap a vehicle older than nine years when purchasing a new vehicle or one that is no more than one year old.
  
  
• The program requires that cars be demolished at government-recognized scrap yards and consumers must provide proof of purchase of the new car and accompanying documents from recycling facility.
  
  
• Additionally, cars must at least meet Euro 4 exhaust emissions standards.
  
  
• The measure is expected to increase light vehicle sales by 200,000 units for 2009.

Italy – Vehicle Scrappage Program

• The program offers up to €1500 (equivalent to approximately $2,400 Canadian) to consumers who scrap vehicles that are at least ten years old towards the purchase of a new, cleaner vehicle.
  
  
• The program, which was announced in February 2009 and is expected to last until the end of the year, doubles the cash incentive for those that purchase a hybrid or natural gas vehicle
  
  
• It also extends to small businesses that buy or exchange small delivery trucks. 

Alternative Models
France

• The program offers drivers with a vehicle over ten years old between €1,000 and €2,000 towards a new car which must emit less than 160g per km.

Spain

• The program offers drivers with cars more than ten years old or that have done more than 150,000 miles a €10,000 zero per cent loan to buy a new car or LCV
  
  
• The car must cost under €30,000 and emit less than 140 g per km

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