Bill With Revamped EV Tax Credit Passes Senate, Heads to House

First Up 08/08/22

Bill With Revamped EV Tax Credit Passes Senate, Heads to House

The Senate passed a landmark tax, climate and health-care bill, speeding a slimmed-down version of President Joe Biden’s domestic agenda on a path to becoming law after a year of Democratic infighting that the White House was unable to control. Automotive News reports the bill allows roughly $374 billion in climate and energy spending such as expanded tax credits for renewable energy projects. It ends per-manufacturer limits for the $7,500 tax credit for electric vehicle purchases, a boost for electric vehicle makers. But the vehicles will have to be built in North America and carmakers will have to quickly end a reliance on China for the battery supply chain The vote on the bill was 51 Democrats in favor to 50 Republicans against, with Vice President Kamala Harris casting the tie-breaking vote after an overnight marathon of votes on amendments. It now goes to the House, where the Democratic majority is expected to pass it on Friday. Click here for the full story.

Automakers Say U.S. Senate Bill Will Jeopardize 2030 EV Targets

A group representing General Motors, Toyota Motor, Volkswagen, and other major automakers said a $430 billion bill approved Sunday by the U.S. Senate will put achieving U.S. electric-vehicle adoption targets for 2030 in jeopardy. "Unfortunately, the EV tax credit requirements will make most vehicles immediately ineligible for the incentive," said the Alliance for Automotive Innovation's chief executive, John Bozzella, adding the bill "will also jeopardize our collective target of 40-50 percent electric vehicle sales by 2030." Reuters reports the group had warned Friday that most EV models would not qualify for a $7,500 tax credit for U.S. buyers under the bill. To be eligible for the credit, vehicles must be assembled in North America, which would make some current EVs ineligible as soon as the bill takes effect. The Senate bill imposes other restrictions to deter automakers from using Chinese-made materials by phasing in required percentages of North American-sourced battery components. After 2023, vehicles with batteries that have Chinese components could not receive the credit, while critical minerals also face limitations on sourcing. Click here for the full story.

Toyota Remains Most Shopped in Q2, Says Kelley Blue Book Brand Watch

According to the most recent Kelley Blue book Brand Watch report, high gas prices have caused consumers of non-luxury automobiles to consider traditional cars at a level not seen since before the epidemic. The purchase of electric automobiles increased as well. Toyota continues to stay at the top. In second place, with a larger and wider gap, is Ford. The three vehicles with the highest shopping consideration were the Honda Accord, Honda Civic, and Toyota Camry. The Toyota Camry was up by 12 percent, while the Civic was up 9 percent. Interestingly, the Accord decreased by 3 percent but stayed in the top 3. CBT News reports vehicle sales are up for non-luxury vehicles at a high rate. This is likely because of inflation. The higher the prices are, the more a car buyer will look for bargains and deals. Shopping for traditional cars is seeing a comeback, but it may not be permanent. High gas prices are turning people away from luxury vehicles, even non-luxury electric vehicles, and hybrid car sales are up. Click here for the full story.

U.S. House Lawmakers Look to Jump-Start Self-Driving Legislative Push

Two members of the U.S. House of Representatives are launching a bipartisan effort to help revive legislative efforts to boost self-driving vehicles. U.S. News reports Representatives Robert Latta, a Republican, and Debbie Dingell, a Democrat, said they are unveiling the bipartisan Congressional Autonomous Vehicle Caucus to help educate fellow lawmakers on the importance of self-driving vehicles as they work to revive legislation. "We're working hard to find that common ground to get something that we can pass," Dingell said, adding the United States must update motor vehicle safety standards written decades ago assuming human drivers are in control and "cannot afford to have a patchwork of laws either across 50 states.” "We both come from automobile states," Latta said. "It's important we keep our competitiveness in the United States -- that we are using U.S. technology, that it is not coming from China... It's got to be done here in the United States." Latta acknowledged self-driving car legislation might not pass until the next two-year Congress that will open in 2023. "It's important that we get members involved from all over the country," Latta said. "This is something that is going to affect everybody." Click here for the full story.

Dealers Are Key to Hyundai’s Success

It’s no secret that Hyundai has won numerous kudos in recent years for its fast-paced introduction of new models that showcase their commitment to electrification and connectivity. Those and other rapid-fire innovations are a positive for the automaker’s bottom line and reputation, but some question how dealerships can keep pace and manage to run efficient, profitable operations. “We really want to partner with our dealers because when we move to mass adoption, (customers are) going to walk into the dealers after they've done their research online and they want to know…’Is that going to work for me?’ says Olabisi Boyle, a vice president of Hyundai Motor America. “(We routinely ask) ‘How do we work with our dealers as we meet with them to say this is the criteria so that you're ready when we sell these?” Although Boyle is responsible for guiding the strategic direction of Hyundai’s U.S. vehicle lineup, leading long- and short-range planning and overseeing market research, business analytics and pricing, she and her leadership colleagues routinely explore and discuss ideas with dealers reports Wards. That type of regular communication is crucial, allowing the automaker to gather information on several vital areas of concern. Click here for the full story.

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