On Monday, General Motors, Ford, Stellantis, and Toyota Motor North America reportedly asked the United States Congress to lift the existing cap on the $7,500 federal tax credit for electric vehicles. Though automakers petitioning the government for free money is hardly new business.
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.
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).
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.
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.
Tesla CEO Elon Musk isn’t fond of the new electric-vehicle incentives being proposed by the United States Congress and recently stated as much over social media this week. He even went so far as to allege that the bill was lobbyists working on behalf of legacy automakers and the United Auto Workers, as it monetarily benefits domestic manufacturers with strong union ties above all others.
Truth be told, it’s kind of hard to respond to those claims with anything other than an affirmative nod. Due to his seemingly intentional manipulation of cryptocurrency and willingness to overpromise Tesla investors, I’m not the biggest fan of Musk. However, he’s getting support from other manufacturers and it’s pretty hard for your author to see any legislative scenario other than the one he’s supporting — especially since this is frequently how business is done on Capitol Hill.
Texas lawmakers have presented Senate Bill 1728 as a way to nail electric vehicles for circumventing fuel taxes, sending everyone into a tizzy. Electrification has become about more than simply developing new powertrains under the auspices of environmentalism and it’s observable in this week’s headlines. But let’s discuss what SB 1728 hopes to achieve so that you might make up your own mind without this author’s forthcoming influence.
If passed, the bill would raise fees on EVs as a way to make up for the gas tax they’re not paying. The proposed legislation stipulates an annual fee of between $190 and $240, an additional fee of at least $150 for anyone who drives their car more than 9,000 miles a year, and then 10 bucks per year for the local charging advisory council. The rules would come into effect this September and raise an estimated $37.8 million for the State Highway Fund in 2022. While we cannot say whether that money will be used responsibly, the pretense is that the funds will be used to “[equalize funding for] road use consumption for alternatively fueled vehicles.”
The Biden administration expanded on its $174 billion proposal to boost electric vehicle sales on Thursday, suggesting that the United States government make it rain money on those purchasing EVs.
Technically a part of the $2.3 trillion infrastructure plan, which has been expanded to include jobs and numerous environmental projects, the proposal makes a lot of special exemptions for alternative energy vehicles backed by large financial commitments. $100 billion will be set aside for new consumer rebates, potentially opening up the door for manufacturers that have already exhausted their quota of federal tax credits linked to zero-emission cars.
Want to wear your environmental activism on your sleeve? Park some of it in your driveway.
Gone are the days when driving an electric car required careful trip planning — and white-knuckled, pit-stained trips to the suburbs. Automakers have finally endowed their greenest rides with enough range to keep anxiety mostly at bay.
And, because there’s a pandemic (among other factors impacting electric vehicle sales), some of those same OEMs really want to move those cars off the lot. There’s deals to be had, greenies.
General Motors has conquest on the mind. As the Labor Day long weekend and all of its associated new car deals looms, the automaker wants to woo owners of Fiat Chrysler products (or their family members) into top-selling Chevrolet and GMC models.
It’s not a huge incentive, but it does call attention to the General’s renewed rivalry with Ram. Chevrolet in particular wants to widen the pickup sales lead it only just recaptured from its resurgent rival.
Nations like Germany might treat internal combustion engines like a shirtless man lighting up a Marlboro in a neonatal intensive care unit, but some countries still feel that they have a place in the automotive landscape. Italy even plans to put public dollars behind their purchase.
When economies and industries are suffering, governments can sometimes do the unthinkable.
Your mileage will vary, automakers. As consumer confidence increases to some degree — a phenomenon partially dependent on what the novel coronavirus is doing in various regions — auto sales are expected to follow.
Forecasters now claim U.S. auto sales will see a marked uptick in June that pales next to the jump seen in May.
If you weren’t aware, the sprawling General Motors assembly plant in Lordstown, Ohio is no longer cranking out Chevy Cruzes. No plant is. And there’s now a strange “Lordstown Motors” sign adorning the complex, with some sort of crazy promise about building electric pickups? Wild.
The state of Ohio certainly took notice, recalling the economic development agreement it signed with the plant’s former owner more than a decade ago. Those public perks were dependent on GM continuing operations at the plant until a point many years in the future. Fork it over, Ohio recently told GM.
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- Kat Laneaux @VoGhost - Not getting into politics. Let me say this though. I wouldn't trust Trump as far as I can throw him. His history precedes his actions and I am so not ok with it. The devil is the master of lies, unfortunately Trump is not far behind him. The guy is so desperate to stay in office, he might as well be Mussolini, or Putin. He just wants power and to be idolized. It's not about working for the people, he doesn't care about us. Put a camera on him and he wants the glory. As I said, his actions speak louder than words.
- ToolGuy "Mr. President, no government agency, no think tank, and no polling firm knows more about the automobile customer than us. We talk to customers every day. As retail automotive dealerships, we are agnostic as to what we sell. Our business is to provide customers with vehicles that meet the needs of their budgets and lifestyles.”• How many lies can you fit into one paragraph?
- Spamvw Three on the tree, even Generation X would have a hard time stealing one of those.
- ToolGuy This trend of cyan wheels needs to end NOW.
- Kwik_Shift Interesting nugget(s) of EV follies. https://x.com/WallStreetApes/status/1729212326237327708?s=20