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As part of its new budget, the Canadian federal government has announced a new $5,000 incentive for electric cars that cost less than $45,000, however, it excludes Tesla vehicles.

Some Canadian provinces already have EV incentive programs but unlike the US, there has never been a federal program to reduce the cost of electric vehicles.

With the launch of their latest budget, the Canadian government has now announced a new $5,000 incentive program that is not yet completed.

Here’s the current language in the budget:

“To encourage more Canadians to buy zero-emission vehicles, Budget 2019 proposes to provide $300 million over three years, starting in 2019–20, to Transport Canada to introduce a new federal purchase incentive of up to $5,000 for electric battery or hydrogen fuel cell vehicles with a manufacturer’s suggested retail price of less than $45,000. Program details to follow.”

The $45,000 cut off point covers vehicles like the Nissan Leaf, Chevy Bolt EV, and Hyundai Ioniq Electric, but all of Tesla’s vehicles are excluded since the base Model 3 starts at $47,000 CAD.

Along with the direct incentive for some consumer electric vehicles, the budget also includes other initiatives like investments in charging infrastructure and a ZEV mandate — though it sounds like it will include “voluntary zero-emission vehicle sales targets”.

Here are the main points:

• To expand the network of zero-emission vehicle charging and refuelling stations, Budget 2019 proposes to build on previous investments by providing Natural Resources Canada with $130 million over five years, starting in 2019–20, to deploy new recharging and refuelling stations in workplaces, public parking spots, commercial and multi-unit residential buildings, and remote locations.
• Meeting the ambitious sales targets requires automakers to make sufficient models and numbers of zero-emission vehicles available for sale to meet Canadian needs. Budget 2019 proposes to provide $5 million over five years, starting in 2019–20 to Transport Canada to work with auto manufacturers to secure voluntary zero-emission vehicle sales targets to ensure that vehicle supply meets increased demand.
• To attract and support new high-quality, job-creating investments in zero-emission vehicle manufacturing in Canada, automotive manufacturers and parts suppliers can access funding through the Strategic Innovation Fund, which was recently provided $800 million in additional funding through the 2018 Fall Economic Statement.

Volkswagen is amongst the legacy automakers now most invested in electric vehicles and they now threaten to exit an important automaker lobbying group over their policies regarding electric vehicles.

Automakers have promoted policies to slow down the adoption of electric vehicles through lobbying groups for years.

Most recently, automakers associations have pushed against efforts to increase average fuel economy, which would have forced EVs to be built in higher volume.

Interestingly, several automakers were claiming to be ‘all-in on electric cars’ while indirectly supporting those lobbying efforts.

Now, Volkswagen appears to be recognizing this issue and is pressuring the Association of the German Automotive Industry (VDA), a powerful lobbying group in Germany, to promote electric vehicles.

Germany’s Welt reported (Translated from German):

“The list of criticisms made at Volkswagen is long. Above all, the association must move away from the strategy of “technology openness” and ensure that all forces are focused exclusively on the enforcement of the battery-electric car. Development and promotion of vehicles with fuel cells and gas engines or other environmentally friendly variants would have to be stopped. This overburden the industry, says VW boss Herbert Diess.”

In short, VW wants the association to stop pushing “alternative fuel” vehicles and focus on battery-electric vehicles.

VDA responded by saying that “other drive and fuel alternatives remain in the field of vision,” but they plan to meet with VW soon to discuss the issue.

Volkswagen announced today its intention to accelerate its electrification effort as part of its decarbonization plan by adding 20 more “electric models” to its planned lineup in order to produce 22 million electric vehicles in the next 10 years.

Those 22 million vehicles will now consist of 70 different models released across Volkswagen’s multiple brands.

Dr. Herbert Diess, CEO of Volkswagen AG, said at the company’s annual meeting:

“Volkswagen is taking on responsibility with regard to the key trends of the future – particularly in connection with climate protection. The targets of the Paris Agreement are our yardstick. We will be systematically aligning production and other stages in the value chain to CO2 neutrality in the coming years. That is how we will be making our contribution towards limiting global warming. Volkswagen is seeking to provide individual mobility for millions of people for years to come – individual mobility that is safer, cleaner and fully connected. In order to shoulder the investments needed for the electric offensive we must make further improvements in efficiency and performance in all areas.”

The German automaker also reiterated its three-part plan to decarbonize its operation by “first, effective and sustainable CO2 reduction. Second, switch to renewable energy sources for power supply. Third, compensate for remaining emissions that cannot be avoided.”

Australian customers have been given a sneak peak of Mercedez-Benz’s all-electric EQC SUV, in what is being described as just the beginning of “a massive onslaught of electric vehicles” from the German car maker.

Mercedes said the Melbourne event on Tuesday night gave customers and special guests Australia’s first look at the company’s first all-electric cross-over, well ahead of the local on-sale date, which is expected later this year.

Some of that number were also invited to become the first Australians to drive the SUV, at a private test facility the following Wednesday.

The “family sized” EQC, which will also be on display at this weekend’s Australian Grand Prix 2019 in Melbourne, aims to compete with the likes of the Jaguar I-Pace, Tesla Model X, and the upcoming BMW iX3,

There’s not a great deal of detail around on the specs of the luxury SUV, but reviews elsewhere in the world have been largely positive, including a 9.2/10 rating from TopSpeed.com. According to another review from CNET’s Road Show, the EQC completed a 228 mile (366km) road-trip along the California coast with a few miles of charge left to spare.

That review says that the SUV has an 80-kilowatt-hour battery pack that provides motivation for two asynchronous electric motors, one at each axle; 402 horsepower and 564 pound-feet of torque, which is delivered solely through the front electric motor under light loads like freeway cruising.

“It’s not going to be the car with the highest top speed … or longest range of all of them,” Mercedes engineer Bastian Schult is quoted as telling CNET’s journalist, Steven Ewing. “We want to make the best overall package. We want to make a Mercedes out of this.”

Mercedes-Benz has been a little slow to the all-electric party, but according to the company’s head of Australia-Pacific, Horst von Sanden, there is sound reasoning behind this.

“We always like to be first, but in this situation with electric cars we were not first, but for a very good reason,” he said in comments on Tuesday.

“We wanted to bring to the market the most complete solution for future mobility. I think it’s fair to say that electric now has a Mercedes!”

Some details of the car’s driving features were discussed at the event by Karl Scheible – the head of testing for the EQC program at the Mercedes-Benz factory in Stuttgart – who was credited as having “spent more time driving the EQC than almost anyone else.”

This, according to Mercedes, included testing it in temperatures of -35°C in Sweden two weeks ago, to heat testing it in California’s Death Valley, as well as testing it for speed, reliability and comfort in South Africa, Spain and Germany.

“We have driven a lot of test kilometres in the past few years, we have done a lot of 60-80 hour working weeks, and everything has been double checked, and it has been a very exciting time,” Scheible said.

“The main differences are that we have no transmission in an electric car, and maximum torque at zero kilometres per hour, so it was a big challenge to find the perfect combination between driveability and acceleration, and a compromise between sportiness and comfort, and driveability.”

Another review of the EQC – biased though it may be – was offered by von Sanden himself, who told customers that after a test drive on Tuesday, he had been “absolutely blown away” by the all-all-electric vehicle’s performance.

“I currently drive a high-performance Mercedes-AMG car and I enjoy it, but having been in the EQC, the torque, the acceleration and the smoothness of the ride was just mind-blowing,” he said.

“Mercedes-Benz has committed to launching an electric car in every model until 2022, so you can imagine this is just the beginning of a massive onslaught of electric vehicles by Mercedes-Benz.”

The Trump administration announced its budget proposal for 2020 and tax credits for electric vehicles is on the chopping block, according to Reuters. The White House is proposing eliminating the subsidy, which provides up to $7,500 on the purchase of a new EV, claiming that it will save the government about $2.5 billion over the next decade.

Before you rush out to buy a plug-in car to score the incentive before it disappears, know that it’s unlikely the proposed budget will pass through Congress. With the House of Representatives currently ruled by a Democratic majority, any Trump proposal is likely to face stiff opposition. Automakers have been lobbying Congress to extend the credit, which currently ends after a company hits 200,000 vehicles sold. Democrats are expected to make an effort to keep the credit alive, though they’ll face challenges in doing so. Senator John Barrasso (R-WY), the chair of the Senate Environment and Public Works Committee, has proposed legislation to end the tax credit.

While the tax credit is likely to cost the government money, that’s in part because it has been successful in incentivizing the purchase of electric vehicles. A congressional report claims more than 57,000 taxpayers claimed an EV credit in 2016 and it’s expected that $7.5 billion in subsidies will be given out to EV buyers between 2018 and 2022. Two car makers, Tesla and General Motors, have already hit the 200,000 vehicle cap but are still eligible for smaller credits.

For its 110th birthday, Bugatti is going back to its roots. The French car manufacturer is digging up the Bugatti Type 35, the company’s famous racing car also called the Bugatti Baby, and giving it a modern makeover. The limited-run Bugatti Baby II features an electric powertrain, driving modes for kids and adults, and a price tag of 30,000 euros (about $33,000). The creation from Bugatti and Junior Classics will be on display at the Geneva International Motorshow this month.

The Baby II is a tribute to the company’s classic racer. It features a similar body design, though the Baby II will be three-quarters the size of the original and features a 3D-printed frame. Inside the revived racer is a rear-wheel-drive battery-powered electric powertrain with removable lithium-ion battery packs. The car features two different power modes: a “child mode” that tops out at 20km/h (about 12 mph) and an “adult mode” that reaches a top speed of 45km/h (about 28 mph). For folks who can’t get enough speed, there is an optional upgrade available that unlocks the “Speed Key.” That allows drivers to use up to 10kW of power and ditches the speed cap to push the vehicle to its limits.

The Baby II will sport Bugatti’s traditional French Racing Blue finish (a range of other colors are available to order) and eight-spoke aluminum alloy wheels, giving it the look of a classic racer. Only 500 of the pricey novelty ride will be made, and production is set to start this fall.