Automakers Ask U.S. Treasury for Clarity, Flexibility in Forthcoming Guidance on EV Tax Credits
Automakers are asking the Treasury Department for clarity on key provisions in the new tax credit for EVs and urging as much flexibility as possible as they hurry to localize supply chains for EV batteries and critical minerals and ensure vehicle eligibility. AIADA, the main trade association for dealers of imported vehicles, expressed concern over the tax credit's restrictions and urged Treasury to issue implementing guidance that supports "a robust EV marketplace by providing realistic and evenhanded pathways to credit eligibility." "Simply put," the association added, "guidelines that do not reflect U.S. market realities and relationships will result in reduced clean vehicle sales and delay electrification adoption in the long term." AIADA asked Treasury to provide annual increases to the credit's caps on vehicle sticker price and buyer income based on the Consumer Price Index, reports Automotive News. "If the new credit's full MSRP, income, and sourcing requirements are implemented as currently interpreted, without accounting for the complexity of our industry, we anticipate few to no vehicles will qualify for the full credit when additional criteria is put in force in 2023," the group warned. Click here for the full story.
Easy Buying Process Key to Customer Satisfaction
While car shoppers want to do the majority of car shopping and buying from home, CarGurus’ latest survey data shows buyers still want to interact with dealerships, says Alexandra Howerter, senior consumer insights analyst for the car research and shopping website. "The test drive remains the biggest deterrent to online purchases. Two-thirds of buyers say the test drive is 'very important' or 'extremely important,'" Howerter tells Wards. "I expected to see lower satisfaction with the buying experience given the market difficulties in 2022, yet consumer sentiment remained strong. We found 80 percent of buyers saying they got a 'good deal' or a 'great deal' on their car purchases." The CarGurus survey is designed to identify the purchase points where deals can be most effective, says Howerter. Key takeaways give dealers insights they can use to develop their sales processes to best match customers' preferences. Click here to learn main insights from the survey.
More Officials Get Behind New Bill That Would Make Most EVs Eligible For $7,500 Tax Credit
The Inflation Reduction Act (IRA) brought with it several swift changes. Perhaps the most impactful is that it dramatically reduced the number of EVs that qualify for a $7,500 federal tax credit. A new bill that would reinstate eligibility for many left out is gaining traction in congress. When the IRA passed it immediately made many vehicles that had been eligible for the tax credit ineligible because they didn’t meet new requirements to qualify. Now, this new bill, introduced by four members of congress would automatically make most EVs eligible for the credit once again. Introduced by representatives Sewell (Ala.), Cleaver (Mo.), Swalwell (Calif.), and Gomez (Calif.), it would push back the timeline on those requirements, reports Carscoops. Eligibility based on battery sources would be pushed back to 2025 while manufacturing would be pushed back until 2026. That would effectively allow almost all EVs to qualify for the federal tax credit again right away. With elections today there’s no way to know how or when this bill might get passed if at all. It would still need to pass both the senate and the house before going to the president’s desk. Click here for the full story.
Renault, Google Expand Pact to Make Cars 'Like Mobile Phones'
Renault is deepening its collaboration with Google in a bid to extend capabilities on remote software updates to new models such as the electric Megane E-Tech and Austral. “We want to make the car an intelligent object that learns and one that can be upgraded over the air like a mobile phone,” Renault CEO Luca de Meo said in an interview. Automakers are scrambling to catch up with Tesla’s tech capabilities, including the ability to deliver updates to cars remotely. Expanding the partnership with Google, which started in 2018, will allow Renault to offer more over-the-air software updates as well as additional on-demand services, reports Automotive News. The partnership with Google will also help Renault accelerate its "end-to-end digital transformation, from the design of the car to its market launch through its production," de Meo said in a statement. The new in-vehicle digital features will create additional revenue while bolstering the residual value of Renault cars and retain customers, de Meo added. Functions on demand will include drivers being able to locate their cars in large parking lots. Click here for the full story.
2022 Midterm Election Results
Nonpartisan political analysts project Republicans will make the net gain of at least the five seats they need to overturn the House’s Democratic majority. The evenly divided Senate, which Democrats lead only with the tie-breaking vote of Vice President Kamala Harris, is more in play. Bloomberg News is reporting live election results for the midterm election. Click here to view live results for U.S. Senate races. Click here to view results for key midterm races.
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