Federal incentives to encourage a shift from gas-guzzling SUVs to fuel-efficient "green cars" could hurt struggling North American automakers by keeping some drivers out of the marketplace without significantly boosting sales of gasoline-electric hybrid cars, industry watchers say.
Auto analyst Dennis DesRosiers said Tuesday the Canadian government should be concerned with how automakers might react to its budget plan, which favors hybrid cars with a rebate of up to $2,000 on the purchase but puts a $4,000 tax on SUVs and other vehicles that use large amounts of fuel.
"If I was General Motors, Ford and Chrysler, I'd be real (upset). Right now, these companies are in real sensitive mode in terms of their very survival," DesRosiers said.
Read Article