Ecotrucking Suspension | An Electric Turn Stopped Dead

Still in its infancy, the electric shift has come to a standstill in the trucking industry. The Legault government’s suspension of a program without notice immediately led to order cancellations, catching the industry and dealers off guard – who fear an unexpected hefty bill.

“When the announcement came out, we had ten trucks on order and in stock to deliver to customers,” explains Guillaume Chénard, vice-president of sales for the Globocam dealer network. “There’s a big question mark there. All of these trucks were sold with the subsidy.”

The change in question concerns the Écocamionnage program, the current version of which was due to expire on March 31. Citing “exceptional enthusiasm,” the Ministry of Transport and Sustainable Mobility (MTMD) recently announced on its website that it was ceasing to accept new applications for financial assistance as of September 6. This “temporary suspension” is in effect until “further notice.”

Ecotrucking involves stimulating electrification and the use of technologies aimed at reducing greenhouse gas (GHG) emissions in freight transport.

For example, for the electric version of a heavy-duty truck (Class 8), it was possible to obtain up to $175,000 under Écocamionnage. The buyer of an electric heavy-duty truck could absorb more than half of the acquisition cost by combining the assistance with federal support – a maximum of $150,000.

The catch? The customer must apply for the provincial program subsidy after receiving their purchase, while federal assistance comes in the form of a purchase discount. In the trucking industry, there is concern that customers will refuse deliveries of vehicles already ordered since they no longer have the guarantee that the money from Quebec will be forthcoming.

“There is a very high level of risk for the customer in ordering an electric truck without knowing whether it will be subsidized,” says Mr. Chénard.

Financial weight

The MTMD message caused a shock in the industry, the trade magazine reported. Road transport recently mentioned it. Owner of the Peterbilt and Kenworth brands, Paccar, which also operates an assembly plant in Sainte-Thérèse, in the Laurentians, even felt the need to attempt to call the Legault government to order.

In a letter addressed to Prime Minister François Legault and three of his ministers, that The Press was able to consult, the American multinational underlines that it is “difficult to understand why this situation was not reported in advance.”

“The purchase, build and delivery of an electric truck can take several months,” says Martin Blanchet, National Sales Manager, Alternative Energy, Peterbilt of Canada. “So it’s reasonable to conclude that if this situation is not resolved, the confirmed customer orders we were expecting to deliver this year and in 2025 will simply be cancelled and become expensive inventory.”

In a letter also sent to the Legault government, the Quebec Trucking Association (ACQ) believes that a change of direction is necessary to “limit the damage.”

“We strongly recommend using all available funds, including those from the Electrification and Climate Change Fund, and reinstating the program retroactive to September 6,” wrote its president and CEO, Marc Cadieux.

Costly inventory to finance

An electric truck can cost up to $600,000, three times more than its diesel counterpart. Until the vehicle is delivered, the dealer pays the financing costs. At Peterbilt, the monthly bill can be close to $65,000 for 18 electric models in stock or on order at two dealerships, according to the letter seen by The Press.

The situation is similar at Globocam, which operates a network of nine dealerships in the province as well as a preparation center for new trucks.

“We can tolerate this situation for about three or four months,” warns Mr. Chénard. “After that, it starts to hurt our books. It’s several million dollars in inventory that we have to support.”

Still at the beginning

Unlike electric passenger vehicles, heavy-duty trucks powered by electricity have been on the roads of the province for a shorter time. So the price gap with combustion models will not narrow significantly any time soon.

“If we want a transition like this to work, we must not shake the confidence of the people who invest in it,” says Mr. Blanchet. “That’s what Écocamionnage is doing.”

At the time of writing, Monday, it had not been possible to find out why the Quebec program had ended up on the sidelines. The MTMD had not responded to questions from The Press sent by email. It is not known whether Quebec is considering an alternative solution.

In its 2023-2028 implementation plan surrounding its strategy for a green economy, the Legault government had planned an envelope of 31 million in 2023-2024 for the Écocamionnage program. It was to reach 56 million this year and gradually climb to 95 million in 2027-2028.

At the ACQ, Mr. Cadieux has difficulty believing that the Legault government was surprised by an “exceptional enthusiasm” for its program.

“We know what a Class 8 truck costs and what the subsidy costs,” he said. “It doesn’t take an Excel spreadsheet. We should be able to plan and provide predictability. Here, we put something online without any warning.”

Cautiously, Lion Électrique also called for a rapid restart of Écocamionnage, stressing that the program must be “adapted.” According to Vice President of Trucks and Public Affairs Patrick Gervais, the measures must “particularly target the replacement of more polluting vehicles, such as those in classes 5 to 8.”