Tag: subsidies

By on December 27, 2019

Next year, the European Union plans to adopt aggressive new rules that would see automakers fined if their total annual vehicle sales exceed predetermined carbon limits. Obviously automakers aren’t thrilled with the new fines and higher emission mandates, but France is facing additional criticism for its decision to take things a step further.

France’s parliament has adopted a new law penalizing cars that emit carbon dioxide above a certain threshold while still adhering to EU regulations. Vehicles failing to adhere to the French rules will be subject to a 20,000 euros ($22,240) tax in 2020, nearly twice the current fine. Meanwhile, the country is mulling the possibility of culling EV incentives — an odd move, considering its aim to transition its populace to zero-emission vehicles. (Read More…)

By on December 23, 2019

Prior to Congress taking the rest of the month off to relax and presumably gear up for an impeachment trial, they first had to settle their year-end tax package. Automakers were hoping that would include an extension of electric vehicle tax credits, but it was a doomed proposition.

An extension was initially included in the bipartisan Driving America Forward Act, which manifested this spring, before being incorporated into the Democrat-friendly GREEN Act (Growing Renewable Energy and Efficiency Now). That got it through the House but not the Republican-controlled Senate, which wasn’t interested.

While the current $7,500 EV tax credit remains in place, Tesla and General Motors have both reached their 200,000-vehicle quota. Naturally, they (and other automakers) lobbied for an expansion, one which would have seen a $7,000 credit kept in place until a manufacturer sold 600,000 electric automobiles. Several Republican lawmakers openly shared their distaste for the plan, though few more openly than Senator John Barrasso of Wyoming, who had an opposing bill — called the Fairness for Every Driver Act — interested in reducing subsidies on the grounds that EV credits have already done enough.  (Read More…)

By on December 11, 2019

The European Union has approved a 3.2 billion-euro fund to promote the research and development of battery technology, with cash pouring in from Belgium, Finland, France, Germany, Italy, Poland and Sweden. While Brussels has been on an electrification push ever since Europe fell out of love with diesel, now may not be the best time to double down on EVs.

We recently covered China’s ailing automotive market, noting the poor performance of new energy vehicles (which fell by at least 40 percent vs the previous November). We’ve also covered a survey showing how eager the nation’s consumer base appeared to be to purchase them, with both writer and readership wondering how reliable those figures actually were. Our collective dubiousness appears to have been valid. Despite being the top region for EV sales, new data from Bernstein Research claims about 70 percent of the 1.2 million electric or gasoline-electric hybrid models sold in China over the past year went directly to government or corporate fleets. When the government started removing subsidies, sales plummeted with little private interest to soften the impact.

Europe may be on a vaguely similar path. While worldwide EV sales are up about 13 percent through October, sales in North America are down 2 percent (at 301,000 deliveries), with Europe rising 37 percent (to 395,000). That’s partially due to European cities being closer together (with more charging points between them), though most EU member states also offer various electric vehicle purchasing incentives and tax exemptions. They’ve likewise adopted stricter environmental rules that make EVs more appetizing to own in the future.  (Read More…)

By on October 3, 2019

Tesla’s Model 3 became the best-selling car in the Netherlands last month, edging out the Volkswagen Polo. If you’re wondering how an electric automobile that goes for the domestic equivalent of $47,300 in Europe outsold VW’s $18,650 hatchback, take a look at the United States. Ford’s F-Series is always at the top of the charts here and, while it can be had for under $30,000, most have sticker prices nearly identical to the aforementioned Model 3.

Tesla also has the advantage of the Netherlands’ eagerness to adopt EVs, which has resulted in some heavy incentivizing. Honestly, if this author could bring himself to be surrounded by the Dutch on a daily basis, he’d be tempted by the parking perks alone.  (Read More…)

By on August 15, 2019

fca

The United Kingdom, a highly populous (and heavily taxed) country that’s smaller than 11 U.S. states, may serve as a canary in the coal mine for electric vehicle adoption. If there’s enough places to charge up your EV, will buyers make the switch?

From across the pond comes news that, for the first time, the number of public electric vehicle charging stations has surpassed that of gasoline and diesel stations. It’s been a long road, as “normal” stations have been on a steady decline since 1970. EV stations popped up in earnest earlier this decade, fueled by government investments and green group initiatives, as well as efforts by automakers eager to provide fuel sources for their new vehicles.

Battery-electric vehicle market share in the UK in July? 1.4 percent. (Read More…)

By on March 20, 2019

2017 Chevrolet Bolt - Image: Chevrolet

That headline was originally typed as “government cash,” except that wouldn’t be quite accurate, would it? Canada’s federal government tabled its budget Tuesday, and within those dry, dry pages was a helping hand for the struggling electric vehicle segment. While two of the country’s 10 provinces offer their own EV rebates (Ontario used to pony up a princely sum until a change in government last year saw the program kiboshed), there was never a federal program to stimulate the sale of green vehicles.

How does $5,000 pooled from your friends and neighbors sound? Good? Hold your horses, Tesla fans. You don’t apply. (Read More…)

By on December 4, 2018

2018 Chevrolet Bolt - Image: Chevrolet

White House economic adviser Larry Kudlow announced Monday that the Trump administration is seeking an end to federal subsidies on electric cars. Interestingly, the move appears to be related to General Motors’ plant closings and layoffs. The company’s restructuring plan hasn’t gone over well with policy makers or the American public, with many accusing the automaker of abusing years of tax breaks, only to reduce its workforce as a way of pursuing new technologies, businesses, and further bolstering its profit margins.

However, cutting GM out of the electric vehicle subsidies deal is more likely to impact its rivals than anything else. The company said it’s on the cusp of the EV tax credit ceiling already, with the gradual phase-out of those incentives likely to take place through 2019. Yet Kudlow pointed to the elimination of the credits as one way of punishing GM for eliminating so many jobs, echoing President Donald Trump’s threats from last last week.

“As a matter of our policy, we want to end all of those subsidies,” Kudlow explained. “And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it’s for renewables and so forth.”  (Read More…)

By on October 12, 2018

The European new car market is in a period of extreme flux. Once-dominant diesels are on the way out thanks to new regulations, looming bans, and cancelled tax incentives, with electrified vehicles poised to take over the high-MPG role.

But not everything’s rosy in the clean, green market on the other side of the Atlantic. A new, more accurate way of measuring fuel economy went into effect last month, and governments — as well as automakers — suddenly realized certain vehicles weren’t as clean as initially thought. Looking to buy a plug-in hybrid in the UK? Say goodbye to that juicy government incentive. (Read More…)

By on August 28, 2018

tesla-model-3

We told you earlier this month that Tesla’s Canadian arm was suing the Ontario government for access to big rebates for some of its vehicles. For years, Ontario, located north of Erie, Pennsylvania, handed out up to $14,000 in taxpayer cash to electric vehicle buyers, part of its effort to support green living.

Over the years, the ceiling of eligible MSRPs varied — from unlimited, to $75k, to $150k, and back to $75k, shortly before the ousting of the previous government in this June’s election. This writer made his feelings on lofty EV subsidies quite clear.

While the cancellation of the province’s Electric and Hydrogen Vehicle Incentive Program (EHVIP) came with a grace period for buyers awaiting delivery that runs out on September 10th, it didn’t include Tesla buyers. Thanks to the automaker’s lawsuit, Tesla buyers can now grab back that $14,000. (Read More…)

By on January 24, 2016

Cadillac China

China’s finance minister said Saturday that the government will end green car subsidies by 2021 and let its market dictate whether EVs or plug-in hybrid can sell on their own in the country, Reuters reported.

Lou Jiwei told reporters that the government would cut subsidies by 20 percent over the next two years, by 40 percent before 2020 and eventually end subsidies altogether by 2021, according to the report.

China surpassed the U.S. last year in electric car sales, in part because of the government’s aggressive support. Few electric cars made in China are available outside the country, however its expected that Cadillac will build in China and sell in the U.S. a plug-in version of its CT6 sedan.

(Read More…)

By on February 17, 2015

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Despite its visions of having a valuation on par with Apple within a decade, Tesla’s subsistence on subsidies may be hard for some to swallow.

(Read More…)

By on July 25, 2014

2011_Nissan_Leaf_SL_--_10-28-2011

In June, Nissan announced that Leaf owners could obtain a replacement battery pack for $5,500 upon trading in the old unit. While a boon to said owners, the automaker is losing blood on the deal every time a pack is sold.

(Read More…)

By on May 9, 2014

Volkswagen CrossBlue Concept SUV

Volkswagen appears ready to announce where its upcoming mid-size SUV — based upon the CrossBlue concept from the 2013 Detroit Auto Show — will be assembled.

(Read More…)

By on February 11, 2014

092112_WEB_a_VW_Sign_t618

Should the United Auto Workers win the upcoming election to represent workers at Volkswagen’s Chatanooga, Tenn. plant, the automaker may find itself shunned by state lawmakers as far as further subsidies are concerned.

(Read More…)

By on February 11, 2014

windsor

Just a few short years after the Canadian and Ontario government bailed out General Motors and Chrysler, a familiar scenario is playing out along Highway 401. Chrysler is reported to be negotiating with both the Ontario and Canadian federal government regarding subsidies for their Windsor assembly plant that builds the Dodge Caravan and Chrysler Town & Country minivans.

While auto makers like Ford and Toyota have received government money recently, the size and scope of the subsidies are said to be unprecedented. And according to reports, Chrysler is threatening to leave if they don’t get what they want. (Read More…)

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