Sunday, April 8, 2007

Government, meet market

Market, meet government:

Honda of Canada Inc. is "seriously considering" stripping some life-saving safety equipment out of the smallest car it sells in Canada to meet new federal fuel efficiency ratings. The Honda Fit does not qualify for a $1,000 rebate under the new rules, announced in the federal budget two weeks ago, while the Yaris, produced by arch rival Toyota, does.

The difference can be explained by the extra air bags, side curtains, antilock brakes and other equipment that the Fit has but the Yaris does not, says Jim Miller, executive vice-president of Honda Canada. "If we stripped all that out it would qualify."

… Toyota, whose customers some analysts say stand to pick up the bulk of rebates from the new federal program, is the only automaker that has wholeheartedly endorsed the budget announcement.
Via Tim Blair