Written by Sabin Becker, for CNN
Ford is announcing a new $11 billion investment in its Canadian operations on Monday, backed by $3 billion in provincial tax rebates, infrastructure incentives and other benefits.
Ontario’s Financial Accountability Office says the province is ahead of most of its Canadian counterparts in implementing an array of supportive programs and policies for the rapidly growing “mobility sector.”
But most of those policies — like lower green levies — take the form of credits and rebates rather than outright tax reductions. Most experts agree that’s a mistake.
“Governments have learned the hard way that attractive tax incentives don’t do much for efficiency and innovation,” says Brad Weinberg, the co-founder of the Energy Innovation Institute, a California-based think tank.
“A compelling case for smarter, fairer and more sustainable policy from governments could accelerate development, reduce pollution and promote economic growth in this field.”
The Detroit-based automaker also has committed to spending $4.5 billion to electrify or substantially redesign 14 vehicles by the end of 2022. The investments, the company says, will include an all-electric version of the Focus. Ford also is considering electrifying the Bronco utility vehicle.