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Electric vehicle options grow, but automakers still unclear if Canadians will buy them – Global News

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Automakers are rolling out some big additions to the electric vehicle landscape this year as the market evolves, but it’s still not clear how much Canadians will be convinced to buy them.

Selection is certainly increasing. At the Canadian International AutoShow in Toronto that wraps up this weekend, automakers were showing off more than 40 hybrid and fully-electric plug-in vehicles, while McKinsey & Co. figures around 400 fully electric models will hit the market globally by 2025, including 113 this year alone.

But analysts say that government policies are crucial to actually push companies to sell those models, since automakers otherwise don’t have enough incentive to move away from internal combustion engine vehicles.


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“I think the real, key problem for them,” said James Carter, principal consultant at Toronto-based Vision Mobility, “is really because they make so much money off ICE trucks, pickups, SUVs right now, that basically, the question that they’re having to ask themselves is ‘how the hell do we get off this drug?”’

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He notes that some companies have been reluctant to move to electrification, while others such as Hyundai and Kia have rolled out popular models but are not producing enough to meet demand, because profitability is a challenge for electric vehicles.

Companies risk losing ground on new technologies if they don’t move fast enough, but also need to make enough profit to make billions of dollars of investment worthwhile, said Carter.

Ford Motor Co. is one of several companies that have made big promises about moving to electric. At the Toronto show they were showing off their all-electric Mustang Mach-E with a towering display and stadium seating for visitors to watch the SUV roll silently on stage. Despite the marketing, it’s still not clear how many will be available for Canadians when they roll out near the end of the year.






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Why people don’t buy electric cars…yet


Why people don’t buy electric cars…yet

The company is hoping the SUV, with upwards of 500 kilometres of range, can win over buyers looking for more space but not willing to giving up performance.

“They don’t want to lose anything in terms of fun to drive, thrilling performance, acceleration, so we do see there is a real appeal to that consumer,” said Ford Canada president Dean Stoneley.

General Motors Co., meanwhile, plans to revive its Hummer brand this year with an electric model, as part of its commitment to move heavily into the space with “no-compromise” vehicles that provide the range and space consumers want, while pushing hard on achieving cost parity between electric and gas vehicles.

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If companies can bring those costs down, and more charging infrastructure is built, Canadians seem to be interested in buying. Vision Mobility partnered on a poll of 1,200 Canadians that showed 56 per cent were either interested or very interested in full-electric vehicles, and 62 per cent on hybrids.


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But demand is heavily influenced by policy. A recent EY report estimated that if all the incentives such as rebates, charging network investments, and emission regulations were removed, then plug-ins might see little market growth from the current roughly three per cent of sales by 2030, while policies could boost it to 30 per cent of new sales.

The International Energy Agency put out a similar estimate for Canadian plug-in sales by the end of the decade based on current policies, while noting that fewer initiatives in the U.S. means electric sales there will likely make up only eight per cent by 2030.

“Policies play a crucial role,” said the IEA in its global electric vehicle outlook last year.

Policies in Canada include rebates from the federal, B.C. and Quebec governments, with the two provinces also mandating that portions of sales in their provinces be plug-in vehicles. The federal government has also set a goal of selling only electric cars by 2040 (though not mandated into law), and is also helping to fund charging infrastructure.

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Drivers urged to shift gears as Canada lags in electric vehicle sales


Drivers urged to shift gears as Canada lags in electric vehicle sales

But some automakers question the fixation on electrification, arguing that total emission reductions should be the goal and that the shift to electric should be gradual because the costs are so significant.

“We’re not rushing to fully electric,” said Jean Marc Leclerc, senior vice-president of sales and marketing at Honda Canada. “The jump to full electric is going to put a tremendous amount of strain, it already is, on the industry.”

Honda has one of the lowest fleet emission profiles among major automakers, which has made it easier for the company to support California’s stricter emission standards.

Ford has also indicated it will fall in line with the tighter standards while Toyota, General Motors and Fiat Chrysler Automobiles have sided with U.S. President Donald Trump’s efforts to loosen emission regulations in the debate. Canadian emissions standards typically follow U.S. regulations.


READ MORE:
Electric car incentives in Canada — what to know about the rebate that includes Tesla 3

Rather than push headlong into electric, Honda is instead making smaller shifts in marketing, including more clear reporting of carbon emissions for all of its models, so consumers can better see the impact.

The company might, however, change their marketing and sales strategy if they start to run up against emission standards that other automakers are already starting to hit.

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“Out of necessity to hit the policy quotas, you’re going to see maybe a push from a marketing perspective to pump the sale of these vehicles,” said Leclerc.

“When we have to sell them to hit a GHG target we may be pushing harder to say, OK, you want that hybrid.”

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Telus prioritizing ‘most important customers,’ avoiding ‘unprofitable’ offers: CFO

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Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.

The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.

Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.

The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.

Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”

“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.

“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”

Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.

The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.

It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.

Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.

It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.

“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.

Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.

The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.

Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.

The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.

“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.

Asked how long that environment could last, he said that’s out of Telus’ hands.

“What I can control, though, is how we go to market and how we lead with our products,” he said.

“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”

Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.

On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.

That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.

Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”

“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.

“We will continue to monitor developments and will take further action if our codes are not being followed.”

French said any initiative to boost transparency is a step in the right direction.

“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.

“I think everyone looking in the mirror would say there’s room for improvement.”

This report by The Canadian Press was first published Nov. 8, 2024.

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TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

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CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

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BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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