Category: Regulation

Canada passed a new tax on luxury goods that will make six-figure vehicles a bit more expensive. The tax went into effect on September 1 for new vehicles built after 2018 that cost more than $100,000. The luxury tax also applies to boats, and aircraft with fewer than 40 seats, though the value threshold for those items rises to $250,000.

It’s not an all-encompassing tax. Commercial vehicles aren’t subject to the fee, nor are vehicles such as motorhomes or anything with a weight greater than 8,501 pounds (3,856 kilograms). Motorcycles are also exempt, as are recreational machines like ATVs and snowmobiles. The tax will be levied at manufacturers and companies who sell or import the vehicles, though it will only be assessed once. Presumably, that tax will then be passed on to the consumer.

How much are we talking about? That depends on the price of the vehicle. The system uses two methods to calculate the fee: either 10 percent of the total price, or 20 percent of the difference between the price and the $100,000 threshold. The lowest of the two will be applied, with the 20 percent threshold favoring vehicles closer to the $100,000 mark.

Consider a $110,000 vehicle as an example. Taxing 10 percent of the total value would be $11,000. However, the difference between the price and the $100,000 threshold is just $10,000. Taxing that at 20 percent is $2,000 – considerably less than taxing the whole enchilada. A bit more basic math tells us that $200,000 is where it all evens out. Beyond that, the 10-percent tax for the entire vehicle is cheaper. Or, you could just buy a GMC Hummer EV, which at 9,000 pounds would theoretically be exempt from the tax.

According to CTV News, industry groups in Canada claim the tax could ultimately lead to $2.8 million in lost sales over the next five years. Mind you, that figure applies to all industries affected, not just automotive.

The US District Court in the Eastern District of Michigan has awarded a default judgment against two companies from Waterford.

The companies in question are Diesel Ops LLC and Orion Diesel LLC – both have been ordered the proposed $10 million civil penalty. The US, through the Environmental Protection Agency (EPA), identified in 2021 that these companies violated the Clean Air Act by manufacturing, selling, and installing of aftermarket parts known as “defeat devices” These devices are designed to disable or bypass required vehicle emissions controls.

The two companies are owned by Nicholas Piccolo, who was also penalized with a $455,925 fine for failing to respond to an information request issued pursuant to Section 208 of the Clean Air Act. Piccolo also received a judgment of slightly less than $1 million for alleged fraudulent transfers in violation of the Federal Debt Collection Procedures Act.

Future sales of defeat devices by the defendants also received a permanent injunction.

“Defeat devices violate Clean Air Act emissions requirements that protect public health and the environment, including by protecting vulnerable communities that are disproportionately impacted by air pollution,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “The United States will vigorously enforce the Clean Air Act, including its prohibition of illegal devices that bypass emission controls and harm the environment and public health.”

“This action sends a strong message that selling and installing defeat devices on vehicles and engines will not be tolerated,” said EPA Region 5 Administrator Debra Shore. “Emission control systems on vehicles are designed to protect public health by reducing pollution, which is why EPA is committed to ensuring that companies comply with the Clean Air Act.”

Defeat devices were discovered in Volkswagen vehicles in 2015 by the EPA, exposing the largest emissions scandal in history. This saw multiple corporate movements within the VW Group, plus the launch of a nationwide crackdown of the EPA against such devices.

Queen Elizabeth II died today at the age of 96. She was the UK’s longest-serving monarch, reigning for 70 years. Born on April 21, 1926, as Princess Elizabeth of York, she acceded to the throne in 1952 at just 25. She celebrated her Platinum Jubilee earlier this year.

Many automakers took to social media to mourn her death and offer their condolences. Aston Martin shared on Twitter that the Queen was “a passionate champion of British culture, enterprise, and innovation.” Jaguar and Land Rover shared the same message on their respective social media accounts, passing along thoughts and condolences to the Royal Family.

Lotus, Lister, Caterham, and Morgan also took to social media to share their thoughts. Lotus called her “an extraordinary role model for people around the world,” while Vauxhall called her 70-year reign “an inspiration to all.”

Ford Executive Chairman Bill Ford also released a statement on Queen Elizabeth’s passing, offering condolences to the Royal Family, and the people of the UK and the Commonwealth. In the statement, Bill said that her death deeply saddened him. “The Queen has been a steadfast and exemplary world leader” who demonstrated “the true meaning of service and dedication.” 

While Her Majesty was royalty, she joined the British Army during World War II. She drove ambulances and learned how to repair heavy trucks while in the service, leading to a life-long love of driving and a particular fondness for Land Rover. She was spotted late last year driving herself around the grounds of Windsor Castle in a green Jaguar wagon. She’s been spotted numerous times driving herself, often behind the wheel of a custom Land Rover.

Queen Elizabeth II, who nearly made it to 100 years of age, saw monumental societal changes. She served during WWII, working with 15 prime ministers and meeting 13 of 14 US presidents during her time as Queen.

Prince Charles, Her Majesty’s eldest son, will now take the throne, possibly becoming King Charles III. Queen Elizabeth’s husband, Prince Philip, Duke of Edinburgh, preceded her in death in 2021. They were married for 73 years.

Aston Martin

 

Audi

 

Bentley

 

Caterham

 

Ferrari

 

Ford

 

General Motors

 

Hennessey

 

Honda

 

Jaguar

 

Land Rover

 

Lister

 

London EV Company

 

Lotus

 

McLaren

 

Mini

 

Morgan Motor Company

 

Rolls-Royce

 

Vauxhall