Toyota hits the jackpot

As if they need the help. How's this for government policy distorting the market:

Unhappy auto companies that sell subcompact cars are revising marketing plans and sales forecasts now that Ottawa has provided a competitive advantage to Toyota Canada Inc. with environmental provisions in the new federal budget.

The provisions will affect virtually every auto maker in the country, but the most significant impact will come in the subcompact segment of the market, where Toyota's Yaris gets a fraction better fuel economy than cars offered by competitors.

Under the government's plan, Yaris buyers will receive a $1,000 rebate from Ottawa, while people who drive off dealers' lots in competing cars such as the Chevrolet Aveo, Honda Fit, Hyundai Accent, Nissan Versa and Suzuki Swift are out of luck...

[...]

...Yaris was the fourth best-selling passenger car [emphasis added] in Canada last year with 34,202 sales.

None of the other vehicles eligible for the rebate came close to that level of sales.

And the Corolla five-speed qualifies for the $1,000 rebate too (list of rebates here). Honda and Nissan must be feeling sick.

Mark C.

Posted by markc at March 22, 2007 06:22 PM