Auto Racing

TORONTO - The governing Liberals are allowing auto insurers to raise rates even though they promised to reduce premiums across the province, the New Democrats charged Tuesday.

Dozens of drivers have contacted the New Democrats to complain that their rates have jumped, said NDP Leader Andrea Horwath.

They include Susan Wright, whose premiums are going up more than 30 per cent, even though her driving record hasn't changed, she said.

"Here we have a provincial government claiming that they're interested in getting rates down by 15 per cent, but they're allowing the insurance industry to jack up the rates by over 30 per cent," Horwath said.

"You can see how the math works on this. The drivers of Ontario are once again being abandoned by the Liberal government."

The Liberals promised in the May 2 budget to lower auto insurance premiums by 15 per cent on average across the province after the NDP demanded a cut.

But Wright, 57, said the cost to insure her family's 2006 Cadillac and 2012 Kia Soul — which covers two drivers and two occasional drivers ages 19 and 27 — recently went up from $3,612 to $4,867.

She said she's lived in Brampton for 47 years and used the same insurance company for 20 years. She has no driving convictions or claims history, Wright said. Nothing had changed.

The only difference is that she no longer has home insurance with the company, but that shouldn't account for such a large increase, she said.

"I was flabbergasted. I just couldn't believe it," said Wright.

"And of course I thought it was coincidental with the recent information of a reduction coming. So I just called and wanted more information about why, but didn't get satisfactory answers."

When she spoke to her insurance agent, he told her that there were "increases across the board" and that he's been "dealing with a lot of screaming people over the phone," she said.

Wright, who is retired and whose husband is planning to retire, said she can't afford the monthly increase.

"It makes a dramatic impact," she said.

Rates overall have gone down 0.3 per cent on average year-over-year, said Finance Minister Charles Sousa. The government and the insurance industry are also working to lower costs by clamping down on fraud.

He bristled at the NDP's accusations that he wasn't serious about reducing rates.

"Of course we're committed; we put it in the budget," he said in the legislature.

"We made it clear that that's exactly what we want to do. We've already assessed the fact that rates have gone down on average, not up."

Insurance companies have to apply for an overall rate increase to the provincial regulator, the Financial Services Commission of Ontario.

The Liberals have promised to expand the regulator's investigation and enforcement authority to ensure that insurance companies are passing on their savings to drivers.

They would have the authority to license and oversee health clinics and practitioners who bill insurers to help crack down on fraud, which the insurance industry says is the main driver of high rates.

Sousa has said the draft legislation would also require insurers to offer lower premiums to people with safe driving records.

He expects the measures will reduce the average annual premium per vehicle by $225, but Sousa has acknowledged that some regions in the province won't see as much of a reduction as others.

"The insurance companies have to apply for rate increases, and that's not happening because we made it clear we want to find reductions going forward," Sousa said Tuesday.

With today’s release of the sixth version of the Fast and Furious series, Dodge is hoping to use the movie to help sell its new Dodge Dart. 

How is this you ask?

Through a commercial that showcases the Dodge Dart along with some action scenes from the Fast and Furious movie. A little strange given that the Dart doesn’t make an appearance in the movie, but they feel that they can grab the attention of that young, mostly male audience. 

In the United States, the Dart got off to a slow start, but showed promise at the end of the year and has shown continued progress at the start of 2013. In Canada, Dart sales totaled 3,460 last year and have also seen a surge in sales in the new year. 

”Dodge Dart sales really gave us a boost this month as well, more than doubling our February sales,” said Dave Buckingham, Chrysler Canada chief operating officer.

I guess when there’s so much hype and promise for a new launch, expectations might be falsely high. The Dart is in a packed compact segment that features the likes of the Honda Civic, Hyundai Elantra, Ford Focus and Mazda3, among many others. It’s just going to take some time for consumers to get comfortable with the Dart after a seven-year Chrysler hiatus from the compact sedan segment. Perhaps this commercial and other movie tie-in marketing ventures can help push the Dart swiftly up the ladder. We will soon find out.

OTTAWA, ON - A growing number of Canada's car dealers are removing fuel-efficiency labels that the industry agreed to display on each vehicle under a voluntary deal reached with Ottawa 15 years ago.

A survey of almost 600 dealerships across the country found that the labels were attached to only 63 per cent of the new vehicles on outdoor lots.

And vehicles displayed in dealer showrooms had the labels affixed just 43 per cent of the time. Some high-end models — BMW and Rolls-Royce, for example — had a zero compliance rate.

The poor showing comes as Natural Resources Canada conducts a review of the voluntary label program for new vehicles, under the brand EnerGuide, including a proposal that it be made mandatory.

The survey of 592 new-car dealerships in 33 large cities was carried out earlier this year by Posterity Group Consulting Inc. under a $113,000 government contract.

The EnerGuide label program for vehicles was launched in 1998 to help consumers make informed choices about the fuel efficiency of new passenger cars, vans and light-duty trucks.

The labels are attached by manufacturers, indicating the number of litres of fuel needed to travel 100 kilometres, and showing the difference between city and highway driving.

The program requires manufacturers to test fuel efficiency of various models under government-approved procedures and standards.

Posterity's final report, delivered in late March, was obtained by The Canadian Press under the Access to Information Act.

Posterity found that some dealers removed the manufacturers' EnerGuide labels because they also included the retail price. Others tore them off because of "aesthetics," while some said the labels affixed to the windshield were "impeding" drivers' vision during test drives.

Many others who pulled them off claimed the labels gave inaccurate or misleading information about fuel-efficiency.

"At some dealerships, EnerGuide labels were missing due to the errors discovered in the mileage estimates claimed by these manufacturers," says the report.

"Ten makes had compliance rates of zero per cent, including Aston Martin, Bentley, BMW, Ferrari, Jaguar, Land Rover, Maserati, Mini and Rolls-Royce."

A spokesman for the Canadian Automobile Dealers Association, representing 3,250 dealerships selling 22 brands, said the poor compliance rate across the country was no surprise.

"These things are less and less relevant," chief economist Michael Hatch said in an interview. "The paper label is decreasingly relevant for consumers."

Apart from price, the most important specification for new-vehicle buyers today is fuel efficiency, Hatch said. And most consumers walking into a showroom have done extensive homework online, unlike in 1998 when there were fewer options for obtaining timely data.

"The world has changed," Hatch said.

Natural Resources plans to radically revamp the label program, with a label redesign, new information on carbon dioxide and smog emissions, and special labels for electric vehicles.

The current fuel-consumption label "does not provide Canadians with the information they need to compare the energy, environmental, and financial costs and benefits of different vehicle choices," the department says.

A new fuel-efficiency testing regime would also expand to include air-conditioner usage, cold temperature operation and higher speeds with faster acceleration.

"For most vehicles, consumption will increase by about 15 per cent," spokesman Guillaume Berube said in an email.

The department is also considering making the new EnerGuide label regime mandatory for the 2016 model year.

Hatch says his group is opposed to mandatory labelling, given that consumers have many other ways to acquire relevant information about new vehicles.

"It's kind of an old-school solution to a problem that in our view doesn't exist," he said. "It's just another layer of red tape."

Hatch's group has no objection to retaining an improved paper label, but does not want regulations requiring them.

Berube says the department has received 168 submissions on the proposed changes, including a requirement to colour them blue.

He said he could not provide a timeline for eventual changes, but the department's regulatory notice says a voluntary system would have to be in place by December this year to catch the 2016 model year.

If a mandatory system is chosen, proposed regulations would be published next year, says the notice.

MISSISSAUGA, ON – Nissan today announced Canadian pricing for the all-new 2014 Nissan Versa Note line-up that will boast segment-first features like AroundView® Monitor, best-in-class cargo space and exceptional fuel economy. With a starting MSRP of just $13,348 CDN and available features like Bluetooth®, leather wrapped steering wheel with mounted audio controls, cruise control and Nissan’s Divide N’ Hide® Storage System, the Versa Note is sure to be a big hit in the Canadian market. 

Also available on the all-new Versa Note is Nissan’s exclusive NissanConnect with Navigation system, offering real-time traffic and weather information, Google™ Send-to-Car, Google™ Points of Interest, Bluetooth® streaming audio and hands-free text messaging, perfect for staying connected safely, while on the road.

“The Versa Note is designed to stir the emotions but priced to appease our rational sides – it’s really going to shake up the sub-compact segment,” said Brian Thomas, Director of Marketing, Nissan Canada Inc. “More and more Canadians are looking for a car that is affordable, compact and fuel efficient but also provides the technology and convenience features needed to fit their lives. With the Versa Note, they can now have it all.”

The second-generation hatchback offers smart packaging and features unexpected in the class. In addition to the new Versa Note’s extensive list of standard equipment, two special equipment packages are offered, including the Convenience Package (available on SV models) which includes a RearView Monitor, rear tonneau cover and Divide N’ Hide® adjustable storage system, USB input with iPod® control, SiriusXM Satellite radio and a 5 inch audio display screen  – all for just $680.

The Technology Package (available on SL models) is priced at $720 and includes AroundView Monitor®, NissanConnect with Navigation, 5.8 inch colour touch screen, XM Satellite with XM Nav Traffic and a USB input for iPod® and other devices. This package creates a technology-packed top model and at just $19,018, represents a ten per cent price advantage for consumers when compared to last year.

When it goes on sale this June at Nissan dealers across Canada, the all-new Versa Note will be available in nine well-equipped models designed to appeal to a broad range of buyer needs and budgets. Manufacturer's Suggested Retail Prices (MSRP) for the 2014 Nissan Versa Note are as follows:

Versa Note 1.6 S, MT   $13,348 CDN

Versa Note 1.6 S, CVT  $14,648 CDN

Versa Note 1.6 SV, MT  $14,998 CDN

Versa Note 1.6 SV, MT, Convenience  $15,678 CDN

Versa Note 1.6 SV, CVT  $16,298 CDN

Versa Note 1.6 SV, CVT, Convenience  $16,978 CDN

Versa Note 1.6 SL, MT  $16,998 CDN

Versa Note 1.6 SL, CVT  $18,298 CDN

Versa Note 1.6 SL, CVT, Technology  $19,018 CDN