As Canada prepares to launch a refreshed federal electric vehicle rebate program on Monday, car dealerships are expressing concern over outstanding reimbursements from the previous program. The new initiative will offer subsidies of up to $5,000 for new electric vehicles priced under $50,000, and $2,500 for plug-in hybrids. While the return of this program is generally welcomed, several dealers are navigating the uncertainty stemming from previous claims that remain unpaid.

Dealerships are apprehensive as they continue to deal with financial shortfalls caused by Transport Canada's refusal to reimburse them for EV-related rebates from the earlier program. Dean Woods, a sales manager at a Kia dealership in Grimsby, Ontario, mentioned that his dealership is still owed $20,000, leading to an atmosphere of distrust toward the reimbursement process. The delay in the government portal for claim submissions, set to launch in April, adds to the anxiety among dealers eager to recover their losses while supporting the new rebate initiative.

The situation highlights the challenges faced by Canadian auto dealers in adapting to changing regulations and rebate structures in the electric vehicle market. As the demand for EVs rises, the effectiveness of government rebate programs will significantly impact dealership operations and the broader push towards sustainable transportation. The ongoing concerns may require prompt action from the government to ensure the smooth implementation of the new program while addressing the unresolved issues of past reimbursements.