The Trump administration has announced plans to disband a program instituted by the Obama administration, the EPA’s vehicle fuel economy standards aimed to reduce greenhouse gas emissions.
A Change in Plans
The Obama-era plan would have affected vehicles produced from 2022-2025. The plan required manufactures to increase their fleet mpg ratings to 55 miles per gallon by 2025. This isn’t to say that all vehicles produced would need to average this, but the average of manufacturer’s entire fleet would need to. So the combined mpg ratings of their hybrids, trucks, cars, vans, etc. would have needed to average 55mpg. Specifics of the new regulations are not known at this time.
The pull-back of this plan should result in manufacturers continuing to focus on producing more SUV’s and crossovers, which are the fastest growing segments in current markets. It should also help vehicle production costs to remain stable, pending the ongoing tariff discussions, resulting in vehicle prices to do the same. However, as we’ve seen time and time again, the volatility of the oil industry could quickly change buyer habits.
California Nightmares
The state of California is the 6th largest economy in the world. And with 34.7 million registered vehicles, it’s safe to assume that their regulations have an impact on vehicle manufacturers.
While the federal government sets the fuel economy standards for the country, California has some special privileges. Since the 1970 signing of the Clean Air Act, California has had the authority to set their own vehicle emissions standards because of the extremely poor air quality in areas of the state. The Obama administration aligned national standards with those of California, meaning vehicles could be sold in every state without issue.
With the EPA’s announcement of these new rules, there’s a disconnect that could result in some confusion. If the two entities cannot agree on new standards, automakers could be in a precarious situation. Do they simply follow CA regulations and apply them to their vehicles across the country, thus ignoring the new EPA rules? Do they produce special vehicles for CA? Or do they not sell certain vehicles in CA?
In an attempt to avoid this issue, the EPA is now targeting the waiver that enables the California to enforce its own rules. A battle between the two entities is expected, a battle that could very well shape the fuel economy standards for the rest of the country.
Time Will Tell
It will be very interesting to see what the new rules for fuel economy ratings end up being. Though it may be even more interesting to see California and vehicle manufacturers respond to them. The Obama-era plan was criticized by auto manufacturers for a number of reasons, but a non-alignment between California and the EPA could make things even more difficult for them.
Mar 2018
EMKAY Helping to Restore Depleted Wildlife Refuges
Since 2010, EMKAY has been contributing to The Conservation Fund in order to help restore our depleted National Parks and Wildlife Refuges.
Over these eight years EMKAY has helped to plant 4,259 trees, resulting in the restoration of 14 acres throughout Wildlife Refuges in Louisiana, Missouri, and Kansas. The Conservation fund estimates that these trees will help to trap an estimated 4,625 metric tons of carbon dioxide as they mature.
We are very proud of this initiative, as the responsibility of conserving natural resources is on individuals and corporations alike. In the words of Ralph Waldo Emerson, “The creation of a thousand forests is in one acorn.”
EMKAY Continues Stevie Success with Three Awards for 2018
After being named a finalist in multiple categories at the 2018 Stevie Awards, EMKAY has received the following honors!
Sales Achievement of the Year – Silver
Back-Office Customer Service Team of the Year – Bronze
Award for Innovation in Sales – Bronze
This marks the tenth consecutive year in which EMKAY has received multiple honors at the Stevie Awards. We are very proud of our team’s extensive efforts in order to make these awards possible. The culture at EMKAY is centered on innovation, and awards such as these help to validate our team’s efforts to provide a truly unique customer experience.
Jan 2018
EMKAY a Best and Brightest in the Nation for Fourth Straight Year
The National Association for Business Resources named EMKAY as one of the Best and Brightest Companies to Work For in the Nation for the 4th consecutive year! This is the sixth time EMKAY has been selected as a Best and Brightest in the Nation.
We are extremely proud of the innovative culture at EMKAY and will continually strive to remain a truly great company to work for. A positive work environment not only benefits our employees, but also our customers and community.
About the Best and Brightest Programs
The Best and Brightest Companies to Work For® competition identifies and honors organizations that display a commitment to excellence in operations and employee enrichment that lead to increased productivity and financial performance. This competition scores potential winners based on regional data of company performance and a set standard across the nation. This national program celebrates those companies that are making better business, creating richer lives and building a stronger community as a whole.
Green Commercial Vehicle Program Established in Ontario
A Green Commercial Vehicle Program is set to begin in Ontario. The Government of Ontario has announced that this program will offer rebates for the purchase of alternative fuel vehicles as well as fuel savings devices (side skirts, boat tails, cab heater and coolers, auxiliary power units, etc…). A breakdown of the available incentives is as follows:
The incentive program is part of Ontario’s Climate Change Action Plan, much of which is centered on reducing greenhouse gas emissions and our carbon footprint. Steven Del Duca, the Minister of Transportation, said in a statement that “We’re committed to working with our partners and local businesses to modernize the way we do business and keep Ontario an attractive and sustainable place to work.”
“This investment will make it easier for businesses with commercial fleets to purchase and use alternative-fuel vehicles and fuel-saving devices,” said Chris Ballard, Minister of the Environment and Climate Change. Applications will be accepted beginning early 2018. For more information on the available incentives, visit the Ministry of Transportation’s website:
2018 Canadian Deduction Limits and Expense Rates Announced
The Department of Finance Canada has announced the 2018 automobile expense deduction limits and the expense rates that are utilized for calculating operating expense benefits. A few highlights of the announcement include:
Changes for 2018
1. The limit on the deduction of tax-exempt allowances that are paid by employers to employees who use their personal vehicle for business purposes for 2018 will be increased by 1 cent to 55 cents per kilometer (CPK) for the first 5,000 kilometers driven, and to 49 CPK for each additional kilometer to reflect that, since the last change to this limit, the per kilometer costs associated with owning and operating an automobile have increased by roughly 1 cent. For the Northwest Territories, Nunavut and Yukon, the tax-exempt allowance is 4 cents higher, and will be increased to 59 CPK for the first 5,000 kilometers driven, and 53 CPK for each additional kilometer.
These allowances are intended to reflect the main costs of owning and operating an automobile, such as depreciation, financing, insurance, maintenance and fuel.
2. The general prescribed rate that is used to determine the taxable benefit of employees relating to the personal portion of automobile operating expenses paid by their employers will also accordingly be increased by 1 cent to 26 CPK. For taxpayers who are employed principally in selling or leasing automobiles, the prescribed rate used to determine the employee’s taxable benefit will be increased by 1 cent to 23 CPK.
The additional benefit of having an employer-provided vehicle available for personal use (i.e., the automobile standby charge) is calculated separately based on capital costs and is also included in the employee’s income.
Unchanged Provisions for 2018
The ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes will remain at $30,000 (plus applicable federal and provincial sales taxes) for purchases after 2017. This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.
The maximum allowable interest deduction for amounts borrowed to purchase an automobile will remain at $300 per month for loans related to vehicles acquired after 2017.
The limit on deductible leasing costs will remain at $800 per month (plus applicable federal and provincial sales taxes) for leases entered into after 2017. This limit is one of two restrictions on the deduction of automobile lease payments. A separate restriction prorates deductible lease costs where the value of the vehicle exceeds the capital cost ceiling.
A link to the original announcement from the Department of Finance Canada is below.
We’re very proud of our partnership with ADESA auctions to raise funds in support of JDRF, the world leader in funding type-1 diabetes (T1D) research. This partnership has been in place for six years now and together we’ve raised over $250,000. Our contribution for 2017 totaled nearly $60,000!
T1D impacts countless families and it’s an honor to support an organization that is working tirelessly to find a cure for this disease.
This fundraising partnership is in addition to numerous other efforts that EMKAY utilizes to support this vital organization. It’s our goal to continually expand these efforts year-over-year. A link to donate to JDRF is below.
EMKAY a Top 5 Most Awarded at 2017 Best in Biz Awards
EMKAY has been named a winner in multiple categories at the 2017 Best in Biz Awards, the only independent business awards program judged each year by prominent editors and reporters from top-tier publications in North America.
We had a great year and ended up as one of the Top 5 Most Awarded! We are extremely proud of our team’s efforts to always excel and innovate. The categories in which EMKAY received awards are as follows:
Most Customer Friendly Company of the Year – Silver Support Department of the Year – Silver Blog of the Year – Gold
For a full list of gold, silver and bronze winners in Best in Biz Awards 2017, visit:
Since 2011, Best in Biz Awards, Inc. has made its mark as the only independent business awards program judged each year by a who’s who of prominent reporters and editors from top-tier publications from North America and around the world. Best in Biz Awards honors are conferred in two separate programs: North America and International, and in 65 categories, including company, team, executive, product, and PR and media. For more information, visit: Best in Biz Awards
Nov 2017
ELD Violations Won’t Impact CSA Scores During Transition
Federal officials have announced a welcome change to the forthcoming mandate that will require commercial trucks to install Electronic Logging Devices (ELD’s). The announcement states that if drivers are cited for non-compliance with the ELD rule during the transition period (December 18th- April 1st), the citation will be a “no points cite.” The result is that the violation will not affect the Safety Measurement System that relays data to the CSA scoring system. However, the fines attached to the non-compliance violations will still need to be paid.
Officials have realized that the considerable task of implementing and enforcing this change is not progressing as quickly as projected, so this update should help to alleviate some of the stress.
Nov 2017
Preventative Maintenance Costs Essentially Unchanged for 2017
The management of preventative maintenance expenses can make-or-break your fleet. While these repairs are essential in deterring the need for larger issues, it’s still important to do what you can to control these costs.
EMKAY recently participated in an Automotive Fleet article that covers how preventative maintenance costs have trended during 2017. The overall findings are that several factors have resulted in these costs remaining flat from 2016 to 2017. Check out the full article here!
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