The threat of new import tariffs has PSA Group worried about its plan to return to the United States. Following President Trump’s proposal to levy a 25-percent tax on steel imports and a 10-percent tariff on inbound aluminum, Europe balked at the suggestion, leading to further threats of a car tariff.

Right now, the U.S. levies a 2.5-percent tax on imported European vehicles, far less than Europe’s 10-percent tariff on vehicle travelling eastward across the Atlantic. There’s a 25-percent U.S. tariff on European vans and trucks, too, which explains why crates of Mercedes-Benz van components sail into the port of Charleston, South Carolina at regular intervals.

According to Trump, any European retaliation against the proposed metal tariffs — which seem all the more likely given yesterday’s resignation of the president’s pro-free trade economic advisor, Gary Cohn — would see the U.S. ratchet up its car tariff. If the scenario comes to pass, your dreams of one day buying a new French car in America could easily be dashed. Read More >

After hitting it big with the Fab Four, George Harrison wrote the scathing song Taxman in protest of the British government’s “Super Tax” on high-income earners. At the time, the boys faced a 95 percent tax on their earnings (“There’s one for you, nineteen for me”), and Harrison reportedly did everything he could to offshore his wealth.

Britain’s dismal weather wasn’t the only reason rock musicians fled the country during this period.

In beautiful British Columbia, a mountain- and wine-filled area north of Seattle, the provincial government’s recent budget has some auto dealers steaming mad and worried their customers will hit the road in search of deal. The province’s New Democratic Party government, elected last year, plans to levy a 25 percent tax on the purchase of very high-end vehicles, with lesser models facing a 20-percent markup. However, many dealers wonder where the law of diminishing returns comes into play. Read More >

The United States’ 18.4-cent-per-gallon tax on gasoline and 24.4-cent tax on diesel hasn’t changed since 1993. Despite this, the opinion that it should be hiked as a way of funding public works was nowhere near the White House’s official infrastructure strategy. But Donald Trump isn’t averse to the idea. In fact, he proposed a 25-cent increase to senators during a Wednesday meeting as a possible funding solution.

White House officials claim the president says “everything is on the table” in terms of finding a solution for America’s growing infrastructure problems. But how serious the rest of the Trump administration is about raising the fuel tax is debatable.  Read More >

Here at TTAC, we sometimes tap sister publications when a story arouses our interest. This piece, published by Hybrid Cars, details a battle brewing in the rustic state of Maine — one that pits hybrid and electric car owners against a government that says their cars, while good for the environment, aren’t good for road upkeep. As cars become greener and gas tax revenues dwindle, this won’t be the last battle.

A proposed new fee for hybrids and EVs in Maine could be the highest in the country, reducing clean vehicle adoption.

The Maine Department of Transportation wants to add an annual registration fee for hybrids and electric vehicles. $150 for hybrids, and $250 for electric models. The DOT is looking to impose the fee because it says drivers of the more energy efficient vehicles aren’t paying their fair share toward road maintenance.

“The owners of these types of vehicles are paying far less in the gas tax than other vehicle owners and they are using the highway system just like any others,” MDOT Manager of Legislated Services Megan Russo told the Portland Press-Herald. “There has got to be a way to try and capture revenue from those drivers who are using our road system.” Read More >

Few things are sexier than a new road. The scent of fresh tar, smooth pavement that’s still warm to the touch — it’s an absolute feast for the senses. After roughly a year of waiting, President Trump finally seems poised to deliver on a bunch of them. The White House has just offered Congress a 53-page report detailing exactly how to rattle loose $1.5 trillion in investments into the country’s ailing infrastructure.

Maybe “poised” is the wrong word to use; how about we just say that he’s been interested in the idea that somebody should build them.

Expect Democrats to complain that the plan totally fails to create a dedicated funding stream to address the infrastructure issue and Republicans to gripe about how the small federal investment, set at $200 billion, is still far too large. It’s a beautiful system we have here.  Read More >

There’s good news this morning for Fiat Chrysler worker in the United States, and it’s also good news for members of the Trump administration.

The automaker has announced plans to sink another $1 billion into its Warren Truck Assembly plant and bring production of its Ram Heavy Duty models to Michigan from Saltillo, Mexico. At the same time, some 60,000 hourly and salaried workers in the U.S. can expect a $2,000 bonus (paid in the second quarter of 2018) in recognition of “their continued efforts towards the success of the company.” The move also means 2,500 previously unannounced jobs for Michigan.

What’s behind all of this sudden goodwill? Recent changes to the country’s tax landscape, FCA claims.

“It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly,” said CEO Sergio Marchionne in a statement.

So, how does this production shuffle play out, and what’s the backstory here? Read More >

Volkswagen has slashed salaries and suspended the bonuses of 14 members of its works council, including council head Bernd Osterloh, as officials investigate alleged overpayments. In May, it was made public that German prosecutors were looking into current and former executives at VW under suspicions that they paid the labor chief an “excessive” salary.

This was followed by a November raid, after which the council claimed the probe didn’t “target Osterloh.” Members specified that all payments were in line with Germany’s legal guidelines. The offices of VW’s chief financial officer, Frank Witter, and personnel director Karlheinz Blessing were also searched. Read More >

It’s the last thing Elon Musk wants to hear and it’s likely not something General Motors will be too pleased about. Contained within the tax plan introduced by House Republicans Thursday is the elimination of a huge driver for electric vehicle sales — the $7,500 EV tax credit.

Automakers, and especially the two mentioned above, already stood to lose their credits in the near future (there’s a 200,000-vehicle-per-manufacturer cap), but the new tax bill would see the buyer incentive permanently removed, not renewed, as many had hoped. Such a move could slam the brakes on a still-fledgling segment in the U.S. Read More >

Looking something like an unborn child peering with sightless eyes from inside an amniotic sack, the Volkswagen I.D. concept vehicle has been revealed ahead of the Paris Auto Show.

The description is apt, as Volkswagen sees the I.D. as an embryo, heralding a long-range electric vehicle slated for production within four years. Read More >

Move over Chevrolet, Ram and Ford?

It’s hard to say if American van and truck builders have anything to worry about after the head of Volkswagen’s commercial vehicles division publicly mused about jumping into the U.S. market. Read More >

Britain’s recent vote to leave the European Union could cause General Motors to up and leave the country, industry analysts predict.

Production of Vauxhall and Opel vehicles could shift across the Channel if the EU places import tariffs on vehicles bound from Britain, LMC Automotive said in a report, ending GM’s decades-long presence. Read More >

A looming bump in New Jersey’s gas tax would mean fewer drivers from neighboring states crossing the Hudson and Delaware Rivers to take advantage of the state’s famously low pump prices.

The state’s transportation fund is almost empty, roads and bridges need repairs, and Democrat lawmakers and select Republicans are putting pressure on Governor Chris Christie to send the gas tax skyward, according to the New York Times.

How much higher? Try 23 cents/gallon more. Read More >

You know the world is a bit upside-down when master wordsmith Jack Baruth spins a web so tight in favor of the EPA and CARB that even the Best and Brightest can’t see through it.

Jack makes a valid point today: light-duty trucks, especially those of the diesel variety, are often driven by people who don’t need the capability that those trucks provide. It’s those diesel pickups that spew tons of particulates and NOx into the atmosphere, both of which are harmful to human health. Goodbye, he says to the light-duty diesel truck, before we turn into Europe. Turbo-fed gasoline engines offer just as much torque as their diesel-powered brethren, he exclaims. There’s no need to buy an $80,000 phallus extender. What do you think of this twin-turbo V6 Raptor?

However, Mr. Baruth stopped just short of saying recreational use of light-duty diesel trucks should be outright banned, instead offering up a solution that’s analogous to gun control.

Read More >

With European regulators taking a closer look at the continent’s wonder fuel — diesel, that is — in the wake of Volkswagen’s emissions scandal, oil burners could hasten their disappearance from European Union streets.

That would be great for police officers in the UK, who seem increasingly confused about what kind of fuel goes in their patrol car’s tank. Read More >

BMW’s electric car sub-brand is growing, thanks to new and upgraded models, but its management ranks are shrinking as executives flee to a Chinese startup.

Three top names, including the program’s head, were lured to China’s Future Mobility Corp. this year, Automotive News Europe reports, while sales dropped by nearly a quarter in the first three months of 2016.

Call it a case of “i” gotta go. Read More >