IRS, DOE List What Vehicles Eligible for EV Tax Credits

First Up 08/18/22

IRS, DOE List What Vehicles Eligible for EV Tax Credits

The Department of Energy and the Internal Revenue Service issued guidance on the effects of the new EV tax credit rules contained in the Inflation Reduction Act of 2022. The DOE has issued a preliminary list of the electric and plug-in hybrid vehicles that are made in North America, and the IRS issued guidance on how to determine if a given vehicle qualifies for the tax credit between Aug. 17 and the end of the year reports The Detroit Bureau. Some provisions, including the requirement that any tax-credited vehicle must undergo final assembly in North America, take effect immediately. Others, including the requirements for battery mineral and component sourcing in North America or free-trade nations, don’t take effect until Jan. 1, 2023.  “That means any EVs assembled outside of North America are now no longer eligible for federal tax breaks,” said Sam Abuelsamid, principal analyst, E-Mobility, Guidehouse Insights.  “However, North American-assembled EVs are still eligible under the old rules. That means Rivian, Lucid, Ford, and Nissan are still eligible until the end of the year. North American-built plug-in hybrids from BMW, Mercedes-Benz and Audi also qualify along with the 2023 model year Volkswagen ID.4.” Click here for the full story.

Electric Car Boom Stresses Public Charging Infrastructure, J.D. Power Study Finds

Automakers are cranking out new EV models at lightning speed, but a recent J.D. Power study shows that the public charging infrastructure has a long way to go to catch up. The organization found that EV owners in high-volume areas struggle with finding a working charger and noted that overall satisfaction with EV purchases depends on where the buyer lives. Autoblog reports the organization polled 11,554 owners for the 2022 study between January and June 2022. J.D. Power points out that there are more Level 2 charging stations in operation than ever, but people are less satisfied with them. The study used a 1,000-point scale to judge satisfaction and found that sentiment around Level 2 chargers dropped 10 points to 633 in 2022.  Satisfaction with DC fast chargers has not changed since last year, remaining steady at 674 points. Most people are fine with the ease of charging. J.D. Power scored satisfaction with the ease of charging at 699 for Level 2 chargers and 745 for DC fast chargers. As the organization notes, this shows that most people understand how to use EV chargers and can use them without significant difficulty. Click here for the full story.

Hydrogen Hub Planned at American Center for Mobility Near Detroit

A modular hydrogen production system is being planned for the American Center for Mobility near Detroit as the vehicle test track looks to adapt its vision to the needs of its customers and the market. BayoTech Inc. aims to open a "hydrogen hub" at the center by mid-2023 after signing a letter of intent for a long-term lease and working through permitting with Ypsilanti Township, Mich. Automotive News reports the deal with BayoTech came about when Toyota Motor Corp., an anchor tenant at the ACM, approached its landlord about bringing a hydrogen fueling source to the campus. Once approved, the company would install prefab hydrogen units capable of pumping out 1,000 kilograms of hydrogen per day, or enough to fill up 200 hydrogen vehicles.It marks BayoTech's entrance into the market and is the first hydrogen project of its kind in Michigan as the fuel technology, often overshadowed by electrification, quietly gains steam in the heavy transportation sector. "There's a huge opportunity that hydrogen can play as a low carbon fuel for helping with the energy transition," said Adam Penque, senior vice president of sales and BayoGaaS Hydrogen Hub Development. Click here for the full story.

How Auto Dealers Are Adapting to Changes in New Car Buying Behavior

In the last few years, new and used car dealerships across the U.S. recognized the need for digital transformation, and as a result, customer satisfaction and dealership productivity soared. But with inflation skyrocketing and tight vehicle inventory persisting, how are dealerships reacting to a market now driven by the three E’s: economy, electrification, and eCommerce? Today on CBT News’ Inside Automotive, we hear firsthand from those on the front lines of retail automotive, including Ruben Santiago, General Manager of Nalley Lexus of Roswell, Brandon Apon, General Manager of Mall of Georgia Mazda, and Lori Wittman, President of Retail Solutions for Cox Automotive. Inflation has significantly impacted the rising interest rates across all industries. Ultimately, this creates a unique situation for dealerships as consumers may be paying higher costs for their purchases, but they are also being offered more for their trade-ins. As a result, the business has maintained itself. With the onset of COVID-19, it’s no secret that eCommerce has become a lifeline for dealerships. As noted by Brandon Apon, “If we don’t sell it online, it won’t get sold at all.” Click here for the full story.

Making Used Cars Work Harder to Improve Cash Flow

Everyone knows the deal right now: Inventory shortages have pushed used-car values to record highs and dealers seeking inventory find it challenging. Every dealer should ask themselves, “Am I getting the most value for my business with every VIN that I have?” If you think the revenue from just one transaction is the most you can get, you’re leaving opportunities on the table. A healthy fleet of used cars gives a dealership options. You can support fixed ops revenue by supplementing loaner fleets when service demand is high – and service demand has never been higher reports Wards. Fleets also allow experimentation with new paid offerings such as extended test drives or rentals. Inventory shortages are expected to continue through the rest of the year and into 2023, making now the time to try new ways to boost your dealership’s used car inventory. When your lot is full of new inventory, it’s easy to keep your courtesy fleet stocked. But when new stock is in short supply, the loaner fleet is an attractive source for top-dollar, pre-owned sales. Click here for the full story.

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