Ottawa unveils $550M in electric truck incentives in London

Ottawa unveils 550M in electric truck incentives in London

Heavy polluting trucks may be off the road sooner and Ingersoll’s Cami Assembly plant may get a lot busier after a federal plan to make electric trucks more affordable was unveiled in London on Monday.

Heavy polluting trucks may be off the road sooner and Ingersoll’s Cami Assembly plant may get a lot busier after a federal plan to make electric trucks more affordable was unveiled in London on Monday.

Ottawa is offering incentives of $10,000 to $200,000 to buy or lease medium- and heavy-duty electric vehicles, from pickups and delivery vans to heavy-duty trucks and even buses, Transport Minister Omar Alghabra said at Western University’s Fraunhofer center for lightweight composite materials research .

Calling the $550-million program “a game-changer for our transportation sector, for communities and for businesses,” Alghabra said the incentives, to be offered immediately, are expected to cut annual emissions by three million tonnes by 2030.

Ottawa worked with manufacturers and research schools to develop the program and “make sure we did this right,” he added. “We want to achieve the best outcomes. It’s exciting for all manufacturers. It will be great for researchers and workers on the line.”

The incentives may mean more orders for Cami Assembly in Ingersoll, now retooling to start making two BrightDrop electric commercial van models for General Motors, said Mike Van Boekel, chairperson of Unifor Local 88, the union representing Cami workers.

“It’s fantastic, I’m glad to see the government come up with this,” he said. “I can see major delivery services and Canada Post taking advantage of this.”

Cami-built BrightDrop vans may qualify for incentives up to $40,000 under the federal program. Production is expected to begin in December, Van Boekel said.

GM Canada, which has yet to announce pricing for its BrightDrop line, could not be reached for comment.

The announcement was made at Fraunhofer because it researches lightweight materials used in electric vehicle manufacturing, supplying both automakers and suppliers, said Lesley Rigg, Western’s vice-president of research.

The center showed off a lightweight case it created to house electric vehicle batteries. It’s also doing battery manufacturing research, she said.

“Fraunhofer speaks to the role research plays in creating vehicles and a sustainable, green economy. We’re very excited to be part of this,” Rigg said. “We’re working with specific car manufacturing companies to develop those parts.”

Federal Minister of Transport Omar Alghabra announced more than $500 million in incentives for medium- and heavy-duty zero emission vehicles, helping businesses to switch to electric fleets.  Photo taken in London on Monday July 11, 2022. (Mike Hensen/The London Free Press)
Federal Minister of Transport Omar Alghabra announced more than $500 million in incentives for medium- and heavy-duty zero emission vehicles, helping businesses to switch to electric fleets. Photo taken in London on Monday July 11, 2022. (Mike Hensen/The London Free Press)

Daniel Breton, chief executive of Electric Mobility Canada, a non-profit advocating for electrification, said heavy vehicle trucks are big polluters, representing about 80 per cent of “black carbon emissions” even though they make up just one per cent of vehicles on the road.

“This is an important step in decarbonizing,” he said. “It’s a fantastic opportunity for a new, green supply chain.”

Ottawa wants only electric medium- and heavy-duty vehicles on the road by 2040.

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THE FEDERAL INCENTIVES

Ottawa unveiled a $550-million program of incentives to buy or lease electric medium- and heavy-duty trucks in London Monday, expected to cut annual emissions by three million tonnes by 2030.

  • $200,000 for Class7/8 vehicles, like coach buses, weighing 11,794 kg
  • $150,000 for Class 8 vehicles, such as dump and cement trucks, 14,970 kg
  • $100,000 for several different class medium-duty trucks, 8,800 – 14,969 kg.
  • $75,000 for different class trucks and vans weighing 6,300 – 8,800 kg
  • $40,000 for delivery vans, weighing 4,400 – 6,300 kg
  • $10,000 for vans and pickup trucks, 3,800 – 4,500 kg

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