The Truth About Cars » Government http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Wed, 22 Oct 2014 22:13:05 +0000 en-US hourly 1 http://wordpress.org/?v=4.0 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Government http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com/category/news-blog/government-news-blog/ Georgia EV Supporters Prepare To Defend State Credit In 2015 http://www.thetruthaboutcars.com/2014/10/georgia-ev-supporters-prepare-defend-state-credit-2015/ http://www.thetruthaboutcars.com/2014/10/georgia-ev-supporters-prepare-defend-state-credit-2015/#comments Wed, 22 Oct 2014 11:00:11 +0000 http://www.thetruthaboutcars.com/?p=934722 EV supporters in Georgia are gearing up to save the state’s tax credit from the chopping block after nearly losing it earlier this year. According to WABE-FM, the city of Atlanta is second in the EV ownership game in the United States, falling behind the technocratic capital that is San Francisco. The high ranking is […]

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fisker-and-tesla-and-coda-georgia-electric-car-show

EV supporters in Georgia are gearing up to save the state’s tax credit from the chopping block after nearly losing it earlier this year.

According to WABE-FM, the city of Atlanta is second in the EV ownership game in the United States, falling behind the technocratic capital that is San Francisco. The high ranking is due to the state’s credit of up to $5,000 on EVs, helping to take off $12,500 from the bottom line when the $7,500 federal credit is taken into account.

Were the state credit have been cut, EV sales would fall dramatically. EV Club of the South board member Michael Beinenson says the credit — and not wanting to feel like Ed Begley Jr. — is the main draw for consumers in Georgia. He also hopes that the credit’s terms are merely changed instead of the entire credit being guillotined when the state’s legislature meets again next year, and is preparing to defend it to the bitter end with other like-minded supporters.

The credit was set to be removed from the books in 2014, citing lost revenue in the millions of dollars as the reason; the bill that would have made it so died hours before the 2014 session drew to a close.

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Tesla Direct Sales Ban Reinforced In Michigan, GM Supported Signing http://www.thetruthaboutcars.com/2014/10/tesla-direct-sales-ban-reinforced-michigan-gm-supported-signing/ http://www.thetruthaboutcars.com/2014/10/tesla-direct-sales-ban-reinforced-michigan-gm-supported-signing/#comments Wed, 22 Oct 2014 10:00:19 +0000 http://www.thetruthaboutcars.com/?p=934698 It’s official: the ban preventing Tesla from directly selling its wares to customers in Michigan has been reinforced. Michigan governor Rick Snyder signed into law HB 5606, now known as Public Act 354 of 2014. The act not only prohibits automakers from telling their dealerships what fees the latter can charge customers, but reinforces a […]

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2013 Tesla Model S Summerside Lighthouse

It’s official: the ban preventing Tesla from directly selling its wares to customers in Michigan has been reinforced.

Michigan governor Rick Snyder signed into law HB 5606, now known as Public Act 354 of 2014. The act not only prohibits automakers from telling their dealerships what fees the latter can charge customers, but reinforces a law already on the books:

This bill does not, as some have claimed, prevent auto manufacturers from selling automobiles directly to consumers at retail in Michigan — because this is already prohibited under Michigan law.

Though Tesla can do little more than open a showroom and a repair shop for now, Snyder said lawmakers should “always be willing to re-examine” legislation with the aim of improving the consumer’s experience “in a more efficient and less costly manner.”

Meanwhile, at least one automaker is happy PA 354 is on the books. In a one-sentence press release, General Motors had this to say prior to the bill’s signing:

We believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan; therefore, we encourage Governor Snyder to sign it.

Per Jalopnik, GM sent a similar message to Ohio governor John Kasich back in March of this year regarding SB137, which would have allowed Tesla to directly sell to customers in the state; the bill later died in the Ohio Senate.

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NHTSA Issues Urgent Recall For Takata-Equipped Vehicles In Humid Climes http://www.thetruthaboutcars.com/2014/10/nhtsa-issues-urgent-recall-takata-equipped-vehicles-humid-climes/ http://www.thetruthaboutcars.com/2014/10/nhtsa-issues-urgent-recall-takata-equipped-vehicles-humid-climes/#comments Tue, 21 Oct 2014 13:00:55 +0000 http://www.thetruthaboutcars.com/?p=934178 If you happen to own certain BMW, General Motors, Honda, Toyota, Mazda and Nissan vehicles, and reside in a humid climate, the National Highway Traffic Safety Administration is urging you to take it in for repairs linked to the Takata airbags installed. Though the agency didn’t explain exactly the need for urgency, the airbags made […]

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Takata Airbag Cutaway

If you happen to own certain BMW, General Motors, Honda, Toyota, Mazda and Nissan vehicles, and reside in a humid climate, the National Highway Traffic Safety Administration is urging you to take it in for repairs linked to the Takata airbags installed.

Though the agency didn’t explain exactly the need for urgency, the airbags made by Takata have been linked to humidity-related failures, where upon detonation, metal shrapnel would be sprayed into the cabin, injuring or killing all within.

Owners of the following affected vehicles may need to bring their vehicles in for repairs if they call Florida, Puerto Rico, Guam, Saipan, American Samoa, Virgin Islands or Hawaii home:

Toyota: 778,177 total number of vehicles potentially affected
2002 – 2004 Lexus SC
2003 – 2004 Toyota Corolla
2003 – 2004 Toyota Corolla Matrix
2002 – 2004 Toyota Sequoia
2003 – 2004 Toyota Tundra
2003 – 2004 Pontiac Vibe

Honda: 2,803,214 total number of potentially affected vehicles
2001 – 2007 Honda Accord (4 cyl)
2001 – 2002 Honda Accord (6 cyl)
2001 – 2005 Honda Civic
2002 – 2006 Honda CR-V
2003 – 2011 Honda Element
2002 – 2004 Honda Odyssey
2003 -2007 Honda Pilot
2006 Honda Ridgeline
2003 – 2006 Acura MDX
2002 -2003 Acura TL/CL

Nissan: 437,712 total number of potentially affected vehicles
2001 2003 Nissan Maxima
2001 – 2003 Nissan Pathfinder
2002 – 2003 Nissan Sentra
2001 – 2003 Infiniti I30/I35
2002 – 2003 Infiniti QX4
2003 Infiniti FX

Mazda: 18,050 total number of potentially affected vehicles
2003 – 2004 Mazda6
2004 Mazda RX-8

BMW: 573,935 total number of potentially affected vehicles
2000 – 2005 3 Series Sedan
2000 – 2006 3 Series Coupe
2000 – 2005 3 Series Sports Wagon
2000 – 2006 3 Series Convertible
2001 – 2006 M3 Coupe
2001 – 2006 M3 Convertible

General Motors: 133,221 total number potentially affected vehicles
2002 – 2003 Buick LeSabre
2002 – 2003 Buick Rendezvous
2002 – 2003 Cadillac DeVille
2002 – 2003 Chevrolet Trailblazer
2002 – 2003 Chevrolet Impala
2002 – 2003 Chevrolet Monte Carlo
2002 – 2003 Chevrolet Venture
2002 – 2003 GMC Envoy
2002 – 2003 GMC Envoy XL
2002 – 2003 Oldsmobile Aurora
2002 – 2003 Oldsmobile Bravada
2002 – 2003 Oldsmobile Silhouette
2002 – 2003 Pontiac Bonneville
2002 – 2003 Pontiac Montana

Recall letters are being sent out to affected owners, who can also look up their VIN through SaferCar.gov to determine if their vehicle is under recall.

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UAW, Political Leaders Uniting To Keep Wrangler In Ohio http://www.thetruthaboutcars.com/2014/10/uaw-political-leaders-uniting-keep-wrangler-ohio/ http://www.thetruthaboutcars.com/2014/10/uaw-political-leaders-uniting-keep-wrangler-ohio/#comments Mon, 20 Oct 2014 14:00:55 +0000 http://www.thetruthaboutcars.com/?p=933842 With the possibility of an aluminum Jeep Wrangler being built elsewhere, the United Auto Workers and political leaders are coming together to convince Fiat Chrysler Automobiles to keep the icon in Toledo, Ohio. Automotive News reports the gathering will occur Monday at the UAW Local 12, with U.S. Senator Sherrod Brown, U.S. Representative Marcy Kaptur, […]

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With the possibility of an aluminum Jeep Wrangler being built elsewhere, the United Auto Workers and political leaders are coming together to convince Fiat Chrysler Automobiles to keep the icon in Toledo, Ohio.

Automotive News reports the gathering will occur Monday at the UAW Local 12, with U.S. Senator Sherrod Brown, U.S. Representative Marcy Kaptur, and Toledo mayor D. Michael Collins joining the group of workers, local leaders and members of the community to launch a campaign to keep the Wrangler at the Chrysler Assembly Plant, where 1,700 (out of a total of over 6,000) help assemble the icon with the help of 800 employed by neighborhood suppliers.

The campaign is set to begin as FCA CEO Sergio Marchionne warned that should the next-generation Wrangler be based upon an aluminum unibody, it would be built elsewhere:

If the solution is aluminum, then I think unfortunately that Toledo is the wrong place, the wrong setup to try and build a Wrangler, because it requires a complete reconfiguring of the assets that would be cost-prohibitive. It would be so outrageously expensive that it would be impossible to try and work out of that facility.

UAW Local 12 president Bruce Baumhower invited 40 elected officials and local businessmen to the gathering, with the intent of establishing a task force set to address the issues that would take the Wrangler out of Toledo.

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Mercedes Turns Former Naval Base Into Autonomous Testing Ground http://www.thetruthaboutcars.com/2014/10/mercedes-turns-former-naval-base-autonomous-testing-ground/ http://www.thetruthaboutcars.com/2014/10/mercedes-turns-former-naval-base-autonomous-testing-ground/#comments Mon, 20 Oct 2014 13:00:56 +0000 http://www.thetruthaboutcars.com/?p=933802 With the highway mostly conquered, autonomous vehicles now must navigate the cities through which they would otherwise pass by, a challenge unto itself with few proving grounds available for research. Mercedes-Benz, however, happened upon a solution not too far from its R&D base in Sunnyvale, Calif. Automotive News reports the automaker is testing its autonomous […]

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With the highway mostly conquered, autonomous vehicles now must navigate the cities through which they would otherwise pass by, a challenge unto itself with few proving grounds available for research.

Mercedes-Benz, however, happened upon a solution not too far from its R&D base in Sunnyvale, Calif.

Automotive News reports the automaker is testing its autonomous vehicles at the Concord Naval Weapons Station, a military base decommissioned in 2005 that may be redeveloped in the future.

Until then, Concord will be used as a “starter city” for autonomous city driving and navigation research and development. The strategy allows Mercedes “to run simulation tests with self-driving vehicles in a secure way, including specific hazardous situations,” per the brand’s head of autonomous driving, Axel Gern.

As for why Concord and similar spaces, such as the NASA facility Google uses to test its commuter pod, are in play over actual cities, Gartner analyst Thilo Koslowski says “existing proving grounds are not challenging enough,” while real-life testing is “too challenging at this point.” Further, both spaces are owned by the federal government, bestowing researchers the opportunity to test their theories without the California legislature dictating otherwise.

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Michigan May Ban Tesla Direct Sales Pending Governor’s Signature http://www.thetruthaboutcars.com/2014/10/michigan-may-ban-tesla-direct-sales-pending-governors-signature/ http://www.thetruthaboutcars.com/2014/10/michigan-may-ban-tesla-direct-sales-pending-governors-signature/#comments Thu, 16 Oct 2014 12:00:00 +0000 http://www.thetruthaboutcars.com/?p=931978 Sitting on Michigan governor Rick Snyder’s desk is a bill that would add the state to the list of places where Tesla cannot sell its vehicles directly to the public, waiting for his pen to seal the deal. Automotive News reports Michigan H.B. 5606 was originally meant to determine whether or not automakers could stop […]

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Sitting on Michigan governor Rick Snyder’s desk is a bill that would add the state to the list of places where Tesla cannot sell its vehicles directly to the public, waiting for his pen to seal the deal.

Automotive News reports Michigan H.B. 5606 was originally meant to determine whether or not automakers could stop their dealership networks from charging consumers certain fees when it was introduced in May, only for the anti-Tesla language to be appended to the bill by the state senate prior to passage — and without notice or debate — during the first two days of October. The bill then returned to the state house, passing 106 to 1 before landing on Snyder’s desk.

On the third day, Tesla contacted the governor’s office to have “a very open and productive dialogue” with those in the Snyder administration, according to vice president of business development Diarmuid O’Connell. He added that the automaker had been watching the bill since its introduction, citing its experience with other bills where anti-Tesla language had been stealthily implemented.

Meanwhile, Michigan Automobile Dealers Association executive vice president Terry Burns applauded the bill, proclaiming that while Tesla are “more than welcome” to do business in Michigan, he would hope they do so based on state law:

One good thing about being governor, you get to do whatever you think is appropriate at the time. We hope and look forward to him signing the bill and clarifying the language, and we hope he does it soon.

As for when the governor would decide the fate of H.B. 5606, a representative said the bill was being evaluated, but nothing has been decided thus far. Snyder has until October 21 to sign.

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EU Withdraws 2020 Electric, Hydrogen Infrastructure Quota http://www.thetruthaboutcars.com/2014/10/eu-withdraws-2020-electric-hydrogen-infrastructure-quota/ http://www.thetruthaboutcars.com/2014/10/eu-withdraws-2020-electric-hydrogen-infrastructure-quota/#comments Tue, 14 Oct 2014 10:00:14 +0000 http://www.thetruthaboutcars.com/?p=930818 The European Union is withdrawing a mandated quota of EV and hydrogen refueling stations that are to be installed in member states by 2020. Instead, the governing body is asking each member install an “appropriate number” of publically accessible EV stations by the start of the new decade, with hydrogen due by 2025 for those […]

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The European Union is withdrawing a mandated quota of EV and hydrogen refueling stations that are to be installed in member states by 2020. Instead, the governing body is asking each member install an “appropriate number” of publically accessible EV stations by the start of the new decade, with hydrogen due by 2025 for those who choose to develop the resource.

Auto Express reports the United Kingdom — as one example — would have fallen 64,000 units short of 122,000 units by 2020, but can now focus instead on its own £9 million ($14.4 million USD) infrastructure program, which will put over 200 electric stations online by the end of this year.

Meanwhile, campaign group Transport & Environment clean vehicles manager Greg Archer lamented the change in the mandate, placing the blame on the member states who “could not accept binding committments for low-carbon charging infrastructure”:

Europe can and should do better and initiate a comprehensive strategy on e-mobility. This continent needs to join the race for clean innovation, cut its €300 billion oil import bill and reduce CO2 emissions as soon as possible.

The Clean Power for Transport mandate will go into effect by the end of October.

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EPA: Mazda Holds Highest MPG, Lowest CO2 Averages For 2013 http://www.thetruthaboutcars.com/2014/10/epa-mazda-holds-highest-mpg-lowest-co2-averages-2013/ http://www.thetruthaboutcars.com/2014/10/epa-mazda-holds-highest-mpg-lowest-co2-averages-2013/#comments Fri, 10 Oct 2014 14:00:17 +0000 http://www.thetruthaboutcars.com/?p=928618 Mazda’s green vibes must just feel right with the Environmental Protection Agency, as the agency has proclaimed the automaker has the highest fuel economy and lowest greenhouse gas emissions of any automaker in 2013. Edmunds reports Mazda’s portfolio netted an average of 28.1 mpg and 316 grams/mile of CO2, followed by Honda (27.4/324), Subaru (26.7/332) […]

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Mazda6_3

Mazda’s green vibes must just feel right with the Environmental Protection Agency, as the agency has proclaimed the automaker has the highest fuel economy and lowest greenhouse gas emissions of any automaker in 2013.

Edmunds reports Mazda’s portfolio netted an average of 28.1 mpg and 316 grams/mile of CO2, followed by Honda (27.4/324), Subaru (26.7/332) and Nissan (26.2/339). Nissan also had the greatest improvement in both rankings, jumping up 2.2 mpg and cutting down 30 g/mi of CO2 compared to 2012. All four are set to continue their green ways, as well, with Mazda leading the way again for 2014 at 28.8 mpg/309 g/mi CO2.

At the bottom of the list, Fiat Chrysler Automobiles delivered an average of 20.9 mpg/425 g/mi CO2. Volkswagen AG bested the other German manufacturers with 353 g/mi CO2 and 25.7 mpg, while Hyundai and Kia continue to be footnotes due to an ongoing investigation regarding fuel economy numbers.

As stated earlier, the overall average mpg for 2013 came out to 24.1 mpg, while overall CO2 emissions averaged 369 g/mi. The EPA adds that the number of vehicles topping out at 40 mpg and above jumped from three to 26, and that the top three most fuel-efficient models for 2013 are the Chevrolet Spark (119 combined MPGe), Honda Fit EV (118) and Fiat 500e (116).

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Sit Down, Waldo: City Council Disbands Police Over Speed Trap Rep http://www.thetruthaboutcars.com/2014/10/sit-waldo-city-council-disbands-police-speed-trap-rep/ http://www.thetruthaboutcars.com/2014/10/sit-waldo-city-council-disbands-police-speed-trap-rep/#comments Fri, 10 Oct 2014 11:00:57 +0000 http://www.thetruthaboutcars.com/?p=928410 The city council of Waldo, Fla. — population 1,000 — sternly told its police department to take a seat in the shame bus, disbanding the force after its chief and interim chief both resigned amid an investigation into the town’s reputation as a speed trap. Associated Press reports the Alachua County Sheriff’s Office will take […]

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Waldo Florida is Hot For Teacher

The city council of Waldo, Fla. — population 1,000 — sternly told its police department to take a seat in the shame bus, disbanding the force after its chief and interim chief both resigned amid an investigation into the town’s reputation as a speed trap.

Associated Press reports the Alachua County Sheriff’s Office will take up where the Waldo Police Department failed, while AAA will consider taking down billboards warning motorists of the speed trap awaiting them.

The path to disbanding began in August, when Chief Mike Szabo was suspended during a probe into allegations of ticket quotas. The same allegations would later take down interim chief, Corporal Kenneth Smith, a couple of weeks later, with both resigning soon after.

The police force was a cash machine for the city budget, providing half of the $1 million spent annually in Waldo; last year alone, 12,000 tickets between seven officers produced $400,000 in revenue.

Though the country sheriff will oversee law enforcement in the near-term, residents believe speeders and criminals will have carte blanche over Waldo. That said, the residents have recently asked the state government to post a single speed limit for their city; currently, there are six within the two square miles Waldo occupies.

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US New-Car Fuel Economy Improves For 2013, Falls For September 2014 http://www.thetruthaboutcars.com/2014/10/us-new-car-fuel-economy-improves-2013-falls-september-2014/ http://www.thetruthaboutcars.com/2014/10/us-new-car-fuel-economy-improves-2013-falls-september-2014/#comments Thu, 09 Oct 2014 11:00:27 +0000 http://www.thetruthaboutcars.com/?p=927914 Good news: New-car fuel economy in the United States improved to an average of 24.1 mpg in 2013. Bad news: Said economy fell to 25.3 mpg for September 2014. AutoblogGreen reports the 2013 average, as calculated by the Environmental Protection Agency, is not only an improvement of 0.5 mpg higher than in 2012, but is […]

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Man Pumping Gas

Good news: New-car fuel economy in the United States improved to an average of 24.1 mpg in 2013.

Bad news: Said economy fell to 25.3 mpg for September 2014.

AutoblogGreen reports the 2013 average, as calculated by the Environmental Protection Agency, is not only an improvement of 0.5 mpg higher than in 2012, but is the highest the yearly average has ever been. It’s also the halfway point to the 2025 CAFE target of 54.5 mpg, which would come out to an EPA sticker value of 40 mpg thanks to improvements in gasoline engines, alternative clean technologies, and the credits such things generate.

Still, it is a long way to the top if the green parade still wants to rock and roll. According to AutoGuide, the University of Michigan Transportation Research Institute reports the September 2014 average is a 0.5 mpg drop from the all-time high of 25.8 mpg recorded in August. The group adds that the last time U.S. new-car fuel economy dropped by 0.5 mpg was in December 2011. Research professor Michael Sivak says the drop “likely reflects the increased sales of light trucks and SUVs, and the reduced demand for fuel efficient vehicles of all types because of the falling gas prices.”

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NADA, CFPB Fight For Future Of Automotive Financing http://www.thetruthaboutcars.com/2014/10/nada-cfpb-fight-future-automotive-financing/ http://www.thetruthaboutcars.com/2014/10/nada-cfpb-fight-future-automotive-financing/#comments Thu, 09 Oct 2014 10:00:13 +0000 http://www.thetruthaboutcars.com/?p=927882 According to National Automobile Dealers Association chair Forrest McConnell, the United States government’s plan to tighten automotive finance regulations amounts to an attempt by said government “to take away the consumer’s right to get a discount.” Autoblog reports the Consumer Financial Protection Bureau wants to further extend its reach in the industry, arguing that a […]

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car salesman battle brigade

According to National Automobile Dealers Association chair Forrest McConnell, the United States government’s plan to tighten automotive finance regulations amounts to an attempt by said government “to take away the consumer’s right to get a discount.”

Autoblog reports the Consumer Financial Protection Bureau wants to further extend its reach in the industry, arguing that a flat-fee system would provide more transparency and prove beneficial to consumers over the current discretionary interest rate system, which the agency claims can be used to discriminate against certain groups of customers.

McConnell returned fire, proclaiming the CFPB’s reasoning as “flawed,” and that dealers are against discrimination:

Dealers have to discount those rates to be competitive. The current system saves customers money. Period.

At stake are 87.4 million outstanding loans worth over $900 billion as of Q1 2014, 90 percent of which originate from 38 auto finance companies that would fall under the proposed CFPB regulations.

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European Auto Execs Warn Too Stringent CO2 Regs Could Kill Local Industry http://www.thetruthaboutcars.com/2014/10/european-auto-execs-warn-stringent-co2-regs-kill-local-industry/ http://www.thetruthaboutcars.com/2014/10/european-auto-execs-warn-stringent-co2-regs-kill-local-industry/#comments Wed, 08 Oct 2014 11:00:56 +0000 http://www.thetruthaboutcars.com/?p=927626 While hot hatches and hypercar hybrids caught the attention of everyone at the 2014 Paris Auto Show, senior executives for some of Europe’s major automakers warned all who would listen that potentially stronger greenhouse-gas regs could prove “fatal” to the European auto industry. The Detroit Bureau reports European Union legislatures are considering issuing targets of […]

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While hot hatches and hypercar hybrids caught the attention of everyone at the 2014 Paris Auto Show, senior executives for some of Europe’s major automakers warned all who would listen that potentially stronger greenhouse-gas regs could prove “fatal” to the European auto industry.

The Detroit Bureau reports European Union legislatures are considering issuing targets of 65 grams of carbon dioxide per kilometer driven by 2025, a 30-gram drop from the target of 95 grams/km in 2021. The drop would be the equivalent of a vehicle in the United States netting 84 mpg, nearly 30 miles per gallon more than the CAFE target of 54.5 mpg set for the U.S. market at the same time as the 65-gram/km mandate would go into effect.

To make this a possibility, senior execs, like Volkswagen’s Martin Winterkorn and Fiat Chrysler Automobile’s Sergio Marchionne, claim significant investments would need to be made to meet the mandate. Winterkorn specifically stated that for every gram of CO2 cut to meet the target, his company must spend €100 million ($140 million USD) “without knowing when these investments pay off.” Observers also claim that while bigger automakers can handle the investment, smaller ones would likely be crippled if not die-off in doing the same.

On the other side, critics proclaim that automakers have been obsessed with the apocalypse of their industry since the 1970s, when the first clear air bills became law. Every time, the industry has been able to meet the challenges before it, and continue to do so today with the use of turbos, direct injection and advanced transmissions.

Marchionne acknowledged those statements, but added that it would ultimately be put on the backs and wallets of the consumers who want the latest and greatest, emphasizing that it would be delusional to think otherwise.

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State, Federal Authorities Target Subprime Liar Auto Loans http://www.thetruthaboutcars.com/2014/10/state-federal-authorities-target-subprime-liar-auto-loans/ http://www.thetruthaboutcars.com/2014/10/state-federal-authorities-target-subprime-liar-auto-loans/#comments Mon, 06 Oct 2014 10:00:39 +0000 http://www.thetruthaboutcars.com/?p=926369 The same subprime lending practices in the mortgage industry that fueled the run-up toward the Great Recession have found a new market to infect: used-car auto lending. According to The New York Times, state and federal authorities are investigating used-car dealerships who finance subprime consumers by creating liar loans, loans where an applicant’s information is […]

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Ameriquest Mortgage NASCAR Nextel Cup Series Ford Fusion

The same subprime lending practices in the mortgage industry that fueled the run-up toward the Great Recession have found a new market to infect: used-car auto lending.

According to The New York Times, state and federal authorities are investigating used-car dealerships who finance subprime consumers by creating liar loans, loans where an applicant’s information is misrepresented, such as inflating one’s income or falsifying their employment information.

Thus far, the investigations have found hundreds of such loans, including a case in Odessa, Texas where two employees at a dealership created over 300 liar loans; the employees are now serving time in federal prison. Meanwhile, 15 states — including Florida, New York, Alabama, Ohio, Texas and Tennessee — have lawsuits pending against dealerships whose subprime lending tactics have financially damaged borrowers who would have otherwise been passed over.

Liar lending also damages lenders and investors — the latter including public pension funds and insurance companies — who buy the loans from the dealerships who commit to such tactics, eroding confidence in the securities generated by the loans. That said, more lenders are falling head over heels to have more loans in their portfolio — sometimes paying dealers in full immediately for them — fostering the sin that led some mortgage companies to the guillotine years ago.

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Sen. Reid Calls Upon Congress To Raise EV Tax Incentives http://www.thetruthaboutcars.com/2014/10/sen-reid-calls-upon-congress-raise-ev-tax-incentives/ http://www.thetruthaboutcars.com/2014/10/sen-reid-calls-upon-congress-raise-ev-tax-incentives/#comments Wed, 01 Oct 2014 10:00:16 +0000 http://www.thetruthaboutcars.com/?p=922273 For the past three years, President Barack Obama has called upon Congress to raise tax incentives for electric vehicles from $7,500 to $10,000, with those calls going unanswered. This year, the top Democrat in the U.S. Senate is taking the charge. The Detroit News reports Senate Majority Leader Henry Reid of Nevada pushed Congress to […]

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Harry Reid

For the past three years, President Barack Obama has called upon Congress to raise tax incentives for electric vehicles from $7,500 to $10,000, with those calls going unanswered.

This year, the top Democrat in the U.S. Senate is taking the charge.

The Detroit News reports Senate Majority Leader Henry Reid of Nevada pushed Congress to boost the incentives — and, therefore, EV sales — proclaiming the government needed to do more to encourage sales:

In order to truly promote innovation, we must as a Congress create opportunities for consumers to invest in advanced technologies, and we haven’t done that yet. We need more tax incentives for that. In 2008, we encouraged America to invest in the growth of the electric car industry with tax credits for qualified electric vehicles.

The extra $2,500 would provide dealers an opportunity to claim credits so long as they disclosed that info to their customers, which would then give said customers a chance to claim the credits at the point of sale, instead of filing a claim with their taxes the following year.

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CFPB Brings The Hammer Down On Captives, Dealer Reserve http://www.thetruthaboutcars.com/2014/09/cfpb-brings-hammer-captives-dealer-reserve/ http://www.thetruthaboutcars.com/2014/09/cfpb-brings-hammer-captives-dealer-reserve/#comments Tue, 30 Sep 2014 14:00:47 +0000 http://www.thetruthaboutcars.com/?p=921689 The hammer has fallen on captive automotive lenders, such as GM Financial, Ford Motor Credit and Toyota Financial Services: The Consumer Financial Protection Bureau began officially asserting its authority over them as the feds and the lenders battle over allegations of discrimination in the latter’s loan products. Forbes reports the captives — regulated at the […]

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CFPB - Consumer Financial Protection Bureau Sign

The hammer has fallen on captive automotive lenders, such as GM Financial, Ford Motor Credit and Toyota Financial Services: The Consumer Financial Protection Bureau began officially asserting its authority over them as the feds and the lenders battle over allegations of discrimination in the latter’s loan products.

Forbes reports the captives — regulated at the state level until this month — will be used indirectly by the agency to regulate dealerships as far as financing is concerned; the new-car dealer lobby won exemption from oversight in 2010.

The focus? Dealer reserve. Lenders allow dealers to add a few percentage points to the former’s loan packages as compensation for generating the leads, generally capped between 2 to 3 percentage points by most lenders. However, the allegations claim dealerships use their dealer reserve to charge more on loans made to protected classes, such as women and minorities.

The CFPB plans to address the issue by “pushing lenders to switch to some form of dealership compensation that takes away dealer discretion, such as a fixed, flat rate for every customer.” The agency also suggested lower caps could also do away with the alleged variations in dealer pricing.

For its part, the National Automobile Dealers Association claims competition “keeps rates low,” that dealership compensation is lower than the rate caps suggested, and by moving to a fixed, flat rate with even lower caps, dealers would no longer be able to offer discounts on financing.

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Valet Mode Data Recorder In 2015 Corvettes Could Bring Legal Trouble For Some http://www.thetruthaboutcars.com/2014/09/valet-mode-data-recorder-2015-corvettes-bring-legal-trouble/ http://www.thetruthaboutcars.com/2014/09/valet-mode-data-recorder-2015-corvettes-bring-legal-trouble/#comments Tue, 30 Sep 2014 10:00:29 +0000 http://www.thetruthaboutcars.com/?p=921601 Not too long ago, General Motors brought comfort to many a new 2015 Corvette Stingray owner with a feature that would do for them what teddy-bear cams did for concerned parents, recording audio, video and vehicle data when the key was given to the valet. Alas, the spyware could land the owner in legal hot […]

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2014-chevrolet-corvette-stingray-convertible-red-front-end-in-motion-05

Not too long ago, General Motors brought comfort to many a new 2015 Corvette Stingray owner with a feature that would do for them what teddy-bear cams did for concerned parents, recording audio, video and vehicle data when the key was given to the valet. Alas, the spyware could land the owner in legal hot water in a dozen states, to say the least.

Automotive News reports GM and Chevrolet will send a software update in October to address the problems that could await owners in two-party states — California, Connecticut, Florida, Hawaii, Illinois, Maryland, Massachusetts, Montana, New Hampshire, Pennsylvania and Washington — were the data recorder used without the consent of the valet. The automaker also notified dealers to inform their customers to not use the system until the update goes through.

The proposed fix could include removing audio recording from the feature, adding a warning informing valets that they’re being recorded, or another method under consideration.

Another notification, signed by GM senior vice president for global quality and customer experience Alicia Boler-Davis, instructs customers to refrain from using the valet mode, or to inform the valet they would be recorded upon taking the car, and to “obtain their consent.”

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California Planning EV Charging-Friendly Building Codes For 2015 – 2016 http://www.thetruthaboutcars.com/2014/09/california-planning-ev-charging-friendly-building-codes-2015-2016/ http://www.thetruthaboutcars.com/2014/09/california-planning-ev-charging-friendly-building-codes-2015-2016/#comments Mon, 29 Sep 2014 11:00:27 +0000 http://www.thetruthaboutcars.com/?p=921193 Should you one day find yourself heading off to make a new life in California, and you own a plug-in vehicle, your home or apartment will already have the minimum infrastructure needed to install a charging port. The Long Tail Pipe reports the California Building Code is set to receive an update sometime between 2015 […]

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home-charger-leviton-620

Should you one day find yourself heading off to make a new life in California, and you own a plug-in vehicle, your home or apartment will already have the minimum infrastructure needed to install a charging port.

The Long Tail Pipe reports the California Building Code is set to receive an update sometime between 2015 and 2016, mandating new housing and parking lots must at least have “the conduit and electrical system calculations required to prepare for charging stations.” This would not only knock down installation costs — current installations require extensive work as far as wiring and upgrades are concerned, with a price tag to match — but could help spur greater adoption of electric cars and motorcycles.

Though installation would be made easier with the standards in consideration, charging could still be a pain. In a study b the state’s Department of Housing and Community Development, grid operator California ISO proclaimed the grid could handle the increase in load so long as the ports are limited to 40 amp charging capacity. The fear is that were the amps to be doubled without upgrades to local transformers, the grid could overload.

The trade-off in limiting amps to maintain grid integrity is longer charging times, which could be made longer when longer-range EVs and their 60-plus kWh packs arrive sometime in 2017. The Long Tail Pipe says 40 amp would deliver times of 10 hours or greater to bring the packs to full. Though the study suggests 120-volt charging, the draft building code makes no mention of using that particular method.

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EU Orders Germany To Cease Use Of R134a Within Two Months http://www.thetruthaboutcars.com/2014/09/eu-orders-germany-cease-use-r134a-within-two-months/ http://www.thetruthaboutcars.com/2014/09/eu-orders-germany-cease-use-r134a-within-two-months/#comments Fri, 26 Sep 2014 12:00:30 +0000 http://www.thetruthaboutcars.com/?p=920050 After months of investigation regarding the German government’s support of Daimler’s continued use of R134a — in violation of a law mandating use of refrigerants “with a global warming potential no more than 150 times that of carbon dioxide” — the European Commission has given Germany two months to comply with the law, or be […]

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Mercedes SL With R134a

After months of investigation regarding the German government’s support of Daimler’s continued use of R134a — in violation of a law mandating use of refrigerants “with a global warming potential no more than 150 times that of carbon dioxide” — the European Commission has given Germany two months to comply with the law, or be fined and taken to court.

Reuters reports the Commission sent its formal request to the Bundesregierung this week, stating that if the government fails to comply, “the Commission may decide to refer the matter to the European Court of Justice.”

Meanwhile, Germany still believes it is not in violation of European Union law, and that the government would reply within two months to the Commission.

As for Daimler, a representative says the company’s position on the use of R134a has not changed, and is still at work on a CO2 replacement expected to arrive in 2017. Daimler’s stance is based on its concerns over the EU-compliant R1234yf refrigerant made by Honeywell, claiming the alternative creates a toxic gas when burned.

The edict comes a few months after Daimler successfully won the right to continue to sell R134a-equipped vehicles in France, when a ban issued by the nation’s economy minister, Ségolène Royal, was found unjustified.

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Privacy Concerns By Auto Lenders Shape SEC Asset-Backed Security Rule http://www.thetruthaboutcars.com/2014/09/privacy-concerns-auto-lenders-shape-sec-asset-backed-security-rule/ http://www.thetruthaboutcars.com/2014/09/privacy-concerns-auto-lenders-shape-sec-asset-backed-security-rule/#comments Thu, 25 Sep 2014 13:00:25 +0000 http://www.thetruthaboutcars.com/?p=918546 It took four years, but the Securities and Exchange Commission has put the final touches on a rule regarding asset-backed securities — including auto loans and leases — and what information is given when a company or investor takes on an ABS. Juan Barnett of DC Car Geek reports the work on the rule began […]

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SEC - Securities and Exchange Commission HQ

It took four years, but the Securities and Exchange Commission has put the final touches on a rule regarding asset-backed securities — including auto loans and leases — and what information is given when a company or investor takes on an ABS.

Juan Barnett of DC Car Geek reports the work on the rule began in 2010, re-proposed with the inclusion of Dodd-Frank Act requirements in 2011, and brought up for consideration again earlier this year. Barnett adds that a total of 240 comments — the majority from financial institutions — were submitted to the SEC in the same period.

As far as the automotive finance industry goes, a consortium dubbed Vehicle ABS Sponsors delivered a 97-page comment in 2012, bringing up numerous concerns about the rule.

One concern in particular focused on privacy issues. Were the then-proposed framework to be enacted, the consortium feared competitors from within and outside the ABS market would use the massive amounts of data collected by its members to upend the industry as a whole:

Ordinarily, we would consider someone appropriating our data to be wrongfully taking our private property and harming us in the marketplace. We think it is highly inappropriate for a government-mandated program to permit, and indeed facilitate, this practice.

Earlier this year, SEC Commissioner Michael Piwowar acknowledged those and similar concerns, suggesting those who do participate in the ABS market “simply follow the statute and require disclosure of asset-level data only if such data is necessary for investors to independently perform due diligence.”

Thanks to a rule modification regarding the sharing of loan-level data, both sides of the ABS game — issuers and investors — can use a private database to talk amongst themselves. Previously, the data would have been made readily available through the SEC’s public database, EDGAR.

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German Government Unveils Bill To Spur ZEV Adoption http://www.thetruthaboutcars.com/2014/09/german-government-unveils-bill-spur-zev-adoption/ http://www.thetruthaboutcars.com/2014/09/german-government-unveils-bill-spur-zev-adoption/#comments Thu, 25 Sep 2014 11:00:50 +0000 http://www.thetruthaboutcars.com/?p=918418 Should you happen to call Germany home and are shopping for a car, the government would like to offer you free parking, tax exemptions for 10 years, and bus-lane privileges if you purchase an EV, FCV or PHEV. Bloomberg reports the bill, known in English as the Electric Mobility Act, would bestow those incentives through […]

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mercedes-benz-sls-amg-electric-drive

Should you happen to call Germany home and are shopping for a car, the government would like to offer you free parking, tax exemptions for 10 years, and bus-lane privileges if you purchase an EV, FCV or PHEV.

Bloomberg reports the bill, known in English as the Electric Mobility Act, would bestow those incentives through the municipalities on drivers who go green in a move meant to bolster demand for such vehicles. The German government has a goal of 1 million EVs by 2020, both to further prove the nation’s engineering might, and to meet tightening greenhouse gas emission regs.

Getting there will likely become easier over the next few months. According to industry group VDA, 17 electric models from BMW, Smart and Mercedes will enter showrooms by the end of 2014, with 12 more coming out of the factories in 2015.

The Electric Mobility Act will come into force by the spring of 2015.

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Real-Time Data May Lead To Greater Automated Law Enforcement http://www.thetruthaboutcars.com/2014/09/real-time-data-may-lead-greater-automated-law-enforcement/ http://www.thetruthaboutcars.com/2014/09/real-time-data-may-lead-greater-automated-law-enforcement/#comments Wed, 24 Sep 2014 11:00:08 +0000 http://www.thetruthaboutcars.com/?p=917562 Presently, V2V (vehicle to vehicle) and V2I (vehicle to infrastructure) technologies are meant to allow a vehicle so-equipped to better navigate its surroundings, and to exchange data with other vehicles like it. If law enforcement has its way, however, the red and blue lights in the rearview mirror could soon give way to the electric […]

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V2V

Presently, V2V (vehicle to vehicle) and V2I (vehicle to infrastructure) technologies are meant to allow a vehicle so-equipped to better navigate its surroundings, and to exchange data with other vehicles like it. If law enforcement has its way, however, the red and blue lights in the rearview mirror could soon give way to the electric eye of automated enforcement.

Autoblog reports the National Highway Traffic Safety Administration acknowledges as much in the agency’s report on the technologies. Though the current framework isn’t meant for law enforcement, and data transmitted by current intelligent transport systems don’t provide enough to link speeding calculations to drivers, deputy administrator David Friedman says the possibility is there:

I know there is potential for law enforcement to optimize some of these things, but if we go too far, too fast in that direction, it could create some consumer backlash that could hurt its adoption. The technology is there, but our initial design is not focused on that.

Of course, automated enforcement wouldn’t obtain its information from ITS data alone, as it would augment a whole assortment of tools meant to nail speeders. Phoenix-based RedFlex is developing a camera network that would measure one’s speed between two points, while Colorado-based Laser Technology Inc. is building a dual laser/camera system that will both calculate speed and record video of the offender.

That said, the allure of real-time data may prove too great to contain on the enforcement front, putting the onus on the consumer to maintain vigilance in keeping data private, as National Motorists Association communications director John Bowman explains:

I hope people start to take notice of this stuff. We’re essentially tracked everywhere we go in almost everything we do. If people don’t push back against it like they’ve started to do with red-light cameras, I just think people will be surprised when they wake up one day and realize they have no privacy left.

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US District Court Orders Discovery For Some GM Ignition Switch Suits http://www.thetruthaboutcars.com/2014/09/us-district-court-orders-discovery-gm-ignition-switch-suits/ http://www.thetruthaboutcars.com/2014/09/us-district-court-orders-discovery-gm-ignition-switch-suits/#comments Mon, 22 Sep 2014 14:00:32 +0000 http://www.thetruthaboutcars.com/?p=916226 Last Friday, U.S. District Judge Jesse Furman issued from his bench in the Southern District of New York an order for discovery to begin on a number of cases related to the February 2014 General Motors ignition switch recall. Reuters reports the order covers suits not tied to an ongoing case regarding GM’s battle to […]

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A recalled Chevy Cobalt ignition switch is seen at Raymond Chevrolet in Antioch

Last Friday, U.S. District Judge Jesse Furman issued from his bench in the Southern District of New York an order for discovery to begin on a number of cases related to the February 2014 General Motors ignition switch recall.

Reuters reports the order covers suits not tied to an ongoing case regarding GM’s battle to maintain its liability shield as erected in bankruptcy court back in 2009. Furman added that discovery should only focus on requests made to the automaker for supporting documents on a “reasonable, but aggressive schedule,” with depositions to be obtained at a later date.

The order comes as 131 fatality claims were filed thus far with the compensation fund established by GM, and maintained by attorney Kenneth Feinberg and his team of experts. The fund also identified a total of 19 fatalities linked to the ignition switch found in 2.6 million Chevrolet, Pontiac and Saturn compact vehicles, up from the automaker’s original count of 13.

Meanwhile, the bankruptcy protection case won’t have a verdict until sometime in 2015. The automaker’s lawyers had requested discovery be delayed until after the case was resolved.

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Howes: No Escape Yet From Recall Woes For General Motors http://www.thetruthaboutcars.com/2014/09/howes-escape-yet-recall-woes-general-motors/ http://www.thetruthaboutcars.com/2014/09/howes-escape-yet-recall-woes-general-motors/#comments Fri, 19 Sep 2014 12:00:07 +0000 http://www.thetruthaboutcars.com/?p=915162 After running the gauntlet of congressional hearings, numerous recalls and personnel firings under the dark cloud of scandal created in the wake of the February 2014 recall crisis, General Motors believes it’s ready to turn the page, that everything is now in the rear view. Not so fast. The Detroit News‘ own Daniel Howes states […]

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GM RenCen Storm Clouds

After running the gauntlet of congressional hearings, numerous recalls and personnel firings under the dark cloud of scandal created in the wake of the February 2014 recall crisis, General Motors believes it’s ready to turn the page, that everything is now in the rear view.

Not so fast.

The Detroit News‘ own Daniel Howes states that the next chapter of the story has just begun, with the combination of this week’s congressional hearing — where National Highway Traffic Safety Administration director David Friedman experienced the lash from the Senate Commerce Committee — and the revelation of 131 fatality claims submitted to the victim compensation plan GM hired compensation expert Kenneth Feinberg to run.

The transparency and independence granted to Feinberg — including weekly updates on the number and types of claims submitted and approved/rejected — and the open-ended nature of the fund itself as far as compensation is concerned are both likely to further dent the automaker’s reputation until the last claims are put through the paces mid-2015.

Further, with investigations by the U.S. Justice Department and the Securities and Exchange Commission nowhere near close to completion, as well as the possibility of Attorney General Eric Holder bringing the hammer down on GM or its lower-level execs in the same manner as Toyota suffered, it may be a long time before the automaker’s reputation recovers to what it once was.

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Tesla Appeals NJ Franchise Statute, May Win Via Legislation http://www.thetruthaboutcars.com/2014/09/tesla-appeals-nj-franchise-statute-may-win-via-legislation/ http://www.thetruthaboutcars.com/2014/09/tesla-appeals-nj-franchise-statute-may-win-via-legislation/#comments Fri, 19 Sep 2014 11:00:38 +0000 http://www.thetruthaboutcars.com/?p=915130 Months after the New Jersey Motor Vehicle Commission forced Tesla to stop directly selling its vehicles to the public, the automaker’s appeal moves closer to its day in court. Automotive News reports the appeal, made in March of 2014, proclaims that Tesla has a right to sell its cars with its business model, as the […]

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Tesla Model S Burnout

Months after the New Jersey Motor Vehicle Commission forced Tesla to stop directly selling its vehicles to the public, the automaker’s appeal moves closer to its day in court.

Automotive News reports the appeal, made in March of 2014, proclaims that Tesla has a right to sell its cars with its business model, as the state’s franchise statute does not apply to the automaker — no franchise agreements were ever made — the MVC overstepped its bounds by enforcing the statute, and the statute itself violates the state’s constitution in part.

That said, the case may not need to see the light of day, as two bills in the state senate would allow Tesla to continue doing business its way, with some limits. The first would give the automaker four stores to itself — two of which are already in operation — with any more to be franchised. Two service facilities would also be required of Tesla were the bill to pass. The second bill would update the franchise statute.

Both bills are expected to be voted upon by late September at the earliest.

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IRS Plug-In Vehicle Credit Cap Data Lacking Accuracy, Detail http://www.thetruthaboutcars.com/2014/09/irs-plug-vehicle-credit-cap-data-lacking-accuracy-detail/ http://www.thetruthaboutcars.com/2014/09/irs-plug-vehicle-credit-cap-data-lacking-accuracy-detail/#comments Fri, 19 Sep 2014 10:00:28 +0000 http://www.thetruthaboutcars.com/?p=915098 In 2008, Congress passed a tax bill that would provide a credit of up to $7,500 for customers who purchase plug-in vehicles as a way to encourage adoption of cleaner vehicles. The credit would last in full for the first 200,000 units an automaker sold, then phased out over the course of 12 months. The […]

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A general view of the Internal Revenue Service Building in Washington

In 2008, Congress passed a tax bill that would provide a credit of up to $7,500 for customers who purchase plug-in vehicles as a way to encourage adoption of cleaner vehicles. The credit would last in full for the first 200,000 units an automaker sold, then phased out over the course of 12 months.

The problem? The agency responsible for handling the credit, the Internal Revenue Service, has no clue as to where things stand as far as that cap is concerned, despite every automaker that sells a plug-in model reporting the figures every quarter, as required by law.

AutoblogGreen reports that despite the fact that no automaker has yet to hit the cap, the IRS website meant to help consumers in their decision as to whether or not to purchase a plug-in vehicle is as dysfunctional as the legislative branch that passed the tax credit in the first place.

From the vehicles listed on the site — only six out of 24 vehicles from various manufacturers are listed — to the reported number of vehicles sold not matching up with what the automakers send to the agency per quarter, the IRS is dropping the ball on consumers who might want a plug-in in part because of the credit. This lack of attention to detail could knock new owners upside the head when the credit they thought they were going to receive ends up being less than desired.

When asked why the current situation exists, along with how the IRS receives and interprets its data regarding the credit cap, a representative stated that for a model to be listed on the site, a waiver must be submitted to the agency by the automaker in question. Both Chevrolet and Tesla, however, would beg to differ, as best explained by Tesla representative Liz Jarvis-Shean:

We’re compliant with reporting our quarterly US sales to the IRS and submit this information to the IRS shortly after each quarter’s close. One would assume that if Model S owners were having issues with this, you’d have heard about it.

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