How Mazda and Honda are secretly boosting Elon Musk's fortune!
Photo credit: Mazda
Well, just when you though Elon Musk couldn't get any richer, Mazda and Honda are both contributing to his fortune with their own mishaps.
According to Le Journal de Montreal, the two Japanese manufacturers were the only ones to receive offset credits in 2023 and 2024...yikes!
Elon Musk never seems to fail at making a profit, with Mazda and Honda both paying the price for their production delays.
Honda feeling the cash burn...
Honda has purchased more than 27,000 credits since 2018 for a government value of $136.6 million at the government rate of $5,000.
«As for the possibility of purchasing more credits in the future, we will look at all options consistent with the government mandate on ZEVs. Honda is aiming for battery electric and fuel cell (hydrogen) vehicles to represent 100% of its vehicle sales by 2040,» assures Ken Chiu of Honda Canada.
In simple terms, Ken Chiu from Honda Canada explains that the company will look at different ways to follow the governments rules on green cars. Their goal is to sell only electric of hydrogen powered cars by 2040...a pretty ambitious goal, to say the least.
This information hints that Honda will miss will miss the province of Quebec's 2035 target. As of 2036, only zero emission vehicles will be allowed on the market.
Quebec to adjust it's regulations?
According to Ms. Lemaitre, the province isn't entirely sure if they will need to adjust their requirements moving forward, which is definitely a problem. So what's the short term solution?
"We don't know yet if Quebec will reduce its requirements, but in the short term, we will have to buy more credits," concedes Ms. Lemaitre.
"The government is talking about price parity between electric and gasoline vehicles, but it doesn't realize that it's making it harder to get there and that it will take longer. We're not fighting the rules and we're also dedicated to decarbonization, but we need more flexibility to reach the targets," argues Ms. Lemaitre.
According to Lemaitre, many car makers are saving up their credits to meet tougher rules and refuse to sell them...which is why Elon Musk's Tesla is the only company selling them right now!
More details to follow.
Source: Journal de Montreal
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