Category: Government

By on January 13, 2022

A divided U.S. Supreme Court has blocked the Biden administration’s vaccine-or-test rule that would have been enforced by the Occupational Safety and Health Administration (OSHA) and impacted roughly 1.7 million automotive employees.

“Although Congress has indisputably given OSHA the power to regulate occupational dangers, it has not given that agency the power to regulate public health more broadly,” the court explained. “Requiring the vaccination of 84 million Americans, selected simply because they work for employers with more than 100 employees, certainly falls in the latter category.”  Read More >

By on January 13, 2022

Mexican and Canadian officials have been dropping hints that they’re not all that enthusiastic about the United States-Mexico-Canada Agreement (USMCA) since before Enrique Peña Nieto, Donald Trump, and Justin Trudeau all sat down to sign it in 2018. But just getting to that point required months of formal negotiations that rarely looked to be all that productive.

Sadly, things don’t seem to have changed now that the USMCA is in full effect. Last week, Mexico requested a dispute settlement panel under the terms of the trade pact to help resolve disagreements about the surprisingly contentious automotive content stipulations that determine whether or not vehicles and parts will be slapped with tariffs. Under the previous North American Free Trade Agreement (NAFTA), 62.5 percent of the vehicle’s components had to be sourced from member nations to be considered tax-exempt. In an effort to spur localized production, USMCA increased that number to 75 and not everyone is thrilled with the updated content requirements with Mexico claiming it’s not even sure how to apply them. Canada now intends to formally sign onto Mexico’s complaint against the U.S. over their divergent interpretation of rules.  Read More >

By on January 10, 2022

General Motors has issued a letter to California Governor Gavin Newsom promising that the automaker is now fully committed to complying with the state’s aggressive emission regulations. This follows an earlier announcement from GM advancing plans to eliminate tailpipe emission from all light-duty vehicles by 2035 via electrification. The company had also increased global spending to develop EVs to $35 billion (USD) through 2025, which is roughly a third more than it had previously been targeting.

Of course, don’t think this has anything to do with altruism or formal commitments to some grand cause. California was simply planning to bar any automakers that hadn’t previously vowed to adhere to its strict regulatory policies from selling to state government fleets. While GM has been in the process of changing its allegiance, the business originally sided with automakers approving of the Trump administration’s regulatory revisions that were at odds with the region.  Read More >

By on January 7, 2022

Toyota Motor Corp. looks to be the next automaker that will have exhausted its allotment of EV tax credits for the U.S. market.

While the quota for $7,500 rebates has already been reached by Tesla and General Motors, Toyota is closing in with 190,000 plug-in sales of its own. The government has limited federally backed incentives to just 200,000 vehicles per manufacturer. Once the Japanese manufacturer reaches that limit, credits go into a cool-down period where it can continue benefiting from the full sum six months after the relevant quarter ends. From there, incentives will be halved for the next two quarters until the company is no longer eligible. Read More >

By on December 29, 2021

If there’s anything that’ll get my stomach into a twist, it’s the government talking about the merits of reducing people’s ability to own things. Fortunately, the 36-hour flu I just experienced made me nigh-invulnerable and someone had forwarded me the latest on what U.K. Parliamentary Under-Secretary for the Department for Transport Trudy Harrison had to say about personal vehicle ownership. She’s very keen on public transpiration but not so interested in the plebian masses having access to their own, individual modes of transport.

Earlier this month, she told a virtual audience at shared transport charity CoMoUK that the United Kingdom needed to move away from “20th-century thinking centered around private vehicle ownership and towards greater flexibility, with personal choice and low carbon shared transport.”  Read More >

By on December 10, 2021

General Motors CEO Mary Barra has chimed in on the weeklong open discussion about whether or not it’s a good idea for America to embrace the Biden administration’s EV tax credit plan, which just so happens to be deeply intertwined with the Build Back Better Act’s cavalcade of federal initiatives.

As we’ve already covered the topic more than once, we’ll avoid the recap and simply post the relevant links where Tesla CEO Elon Musk recommended pitching the entire bill into the trash and Transportation Secretary Pete Buttigieg went to bat for the White House by suggesting the updated tax scheme was a necessity for electrification to thrive. Barra opted to go with the latter take, stating that it could help accelerate EV adoption. Read More >

By on December 9, 2021

On Wednesday, President Joe Biden signed an executive order committing the United States to the acquisition of only zero-emission vehicles by 2035 for the federal vehicle fleet.

This is totally in line with the administration’s stated desire to focus on transitioning the nation toward renewable energy sources while advancing electric vehicle adoption rates. But the event was curiously not celebrated with the applicable fanfare. Biden signed the document without media there to capture the moment and reporters failed to ask about it during a press event on the White House lawn later in the day. Were it not for an official fact sheet issued by the administration later in the day, we may never have known there even was a signing.  Read More >

By on December 8, 2021

U.S. Transportation Secretary Pete Buttigieg has responded to criticisms Elon Musk has made about the Biden administration’s plan for electric vehicle subsidies.

The Tesla CEO believes the Obama-era EV tax credits were more than sufficient, with his own company serving as physical proof, and suggested the entire Build Back Better Act be tossed into the toilet. But Secretary Buttigieg said it was a necessary item if the United States hoped to advance electrification, swiftly transition away from combustion vehicles, and escape the perils of climate change (formerly known as global warming).  Read More >

By on December 8, 2021

Despite being one of the last hero states to not require routine vehicle inspections, Michigan is infamous for boasting the highest auto insurance rates in the whole country. Blame the double-edged sword that is the state’s no-fault insurance scheme, the region’s relatively high number of uninsured motorists, or the general popularity of personal injury lawsuits (an American pastime). Heck, blame the whole insurance industry while you’re at it because it’s the one that managed to become wildly profitable off the concept that you’ll be bankrupted if you don’t pay in.

But don’t blame Michigan’s formerly mandatory unlimited personal injury protection (PIP) requirement that’s been around for decades, because it was done away with in 2019. The previous arrangement required drivers in The Mitten State to purchase unlimited PIP insurance, allotting for those at fault (no-fault insurance schemes be damned) to provide a lifetime of medical benefits to victims. On Tuesday, Gov. Gretchen Whitmer’s administration announced that the Michigan Catastrophic Claims Association (MCCA) fund will also be issuing $400 checks to drivers in the spring of 2022 as part of a $5 billion surplus that’s being handed off to insurers.  Read More >

By on December 7, 2021

Elon Musk has continued bashing the Biden administration’s tax credit legislation designed to spur electric vehicle adoption, this time suggesting that the entire bill be scrapped. Included as part of the Build Back Better Act that’s focused on addressing various social, infrastructure, and climate issues, Musk suggested the entire text simply be done away.

“Honestly, I would just can this whole bill,” he stated at The Wall Street Journal’s CEO Council Summit, appearing remotely from Tesla’s construction site in Austin, Texas.  Read More >

By on November 30, 2021

Despite the semiconductor shortage having encouraged the automotive sector to repeatedly idle factories, word on the ground is that things are becoming more stable. Companies are seeing less production downtime overall and workers are reporting more reliable working conditions across the board. However, several automakers have continued to express concerns (e.g. Volvo), alleging that chip shortages could stretch deep into 2022, while the U.S. government ponders how to advance chip production in-country and become less dependent on Asian suppliers.

Commerce Secretary Gina Raimondo has been touring Michigan, meeting with union members and industry heads, and plans to urge Congress to move on a $52 billion in funding bill aimed at boosting domestic production. We’ve questioned the efficacy of the CHIPS Act before, primarily in relation to how the subsidies would be allocated. But there are new concerns that the plan will mimic the Biden administration’s EV subsidies by spending heaps of taxpayer money and giving union-backed organizations a larger cut.  Read More >

By on November 10, 2021

There’s an initiative to convince Congress to pass legislation that would pour billions of dollars onto chip manufacturers at play that’s being led by Michigan Governor Gretchen Whitmer. A letter, signed by nine other governors, was issued asking like-minded lawmakers to send $52 billion in economic aid so that the chip shortage so that the supply issues that have been plaguing various industries (including the automotive sector) can finally be resolved.

Backed by the U.S. Semiconductor Industry Association (SIA), the “CHIPS for America Act” is just one of several programs designed to use the National Defense Authorization Act to create federal funding for chip suppliers. The governors (all of which are from states manufacturing automobiles) say they want a cash injection by the end of 2021 so that domestic chip manufacturing can build new factories right away. But SIA lobbyists are pressing for numerous plans that would result in extensive tax breaks and annual investments from the government that is all focused around the proposed CHIPS legislation and piggybacks on the recently passed U.S. Innovation and Competition Act (USICA).

Alright, let’s break this down.  Read More >

By on November 9, 2021

The National Highway Traffic Safety Administration (NHTSA) has announced it is making its first ever whistleblower award. The U.S. regulatory body has decided to give over $24 million to a whistleblower providing information related to Hyundai Motor America and Kia Motors America. While not named by the NHTSA, it’s undoubtedly talking about Kim Gwang-ho — a South Korean engineer who flew to Washington in 2016 to squeal that his employer had been skirting safety regulations.

Armed with an internal report from Hyundai’s quality control team, Kim told the NHTSA the company was not taking sufficient action to address a presumed engine defect that increased the risk of crashes. It looks like the decision paid off for him, too. Hyundai Motor Group was struck with sizable regulatory penalties and Kim is now getting a huge payout from U.S. regulators right before the Department of Transportation proposes updated regulations pertaining to the automotive whistleblower program Congress created in 2015.  Read More >

By on November 2, 2021

Toyota Motor North America has already voiced its opposition to the proposed EV tax credit scheme tied to the the Democrats’ latest spending bill. This week, it has decided to expand its message by purchasing advertisements in national publications.

Starting Tuesday, Toyota will be launching an ad campaign intended to help bring Americans toward its side of the fence. While the automaker isn’t intrinsically offended by the government-backed incentivizing of electric vehicles, it has taken umbrage with the Biden administration’s insistence that consumers be issued an additional $4,500 incentive for purchasing union-made products. Though the reasoning should be obvious, since the company doesn’t have any unionized facilities in the U.S., the automaker is seeing growing support as the related legislation is stalled on Capitol Hill.  Read More >

By on October 13, 2021

Like the rest of the world, the automotive industry is currently living in two distinct realities. Labor unions and part suppliers have been sounding the alarm that electric vehicles will require far fewer hands to manufacture and will ultimately lead to their demise. But battery firms, establishment politicians, and most automakers have claimed that transitioning to EVs is entirely necessary and will result in there being a surge of high-paying jobs to replace those lost.

Then there are claims you can’t quite wrap your head around, like the one Volkswagen CEO Herbert Diess reportedly made to the supervisory board in September. The Diess Man asserted that VW would lose 30,000 jobs if it transitioned too slowly to electrics, framing the situation around Tesla arriving in Germany and fresh competition from Chinese manufacturers. While it’s certainly possible that VW could take a hit as its rivals move on Europe, the premise that it’s going to cost the business jobs is sort of bewildering when just about every analyst agrees that electrification will result in a leaner workforce across the board.  Read More >

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