Manchin Threatens to Sue U.S. Treasury Over EV Tax Credit Rules
Senate Energy Committee Chair Joe Manchin said he may go to court after the U.S. Treasury releases guidance later this week on battery sourcing guidance for electric vehicle tax credits. "If it goes off the rails" and violates the intent of the climate legislation approved in August, "I will do whatever I can — if that means going to court and I can do it, I'd do it," said Manchin, a Democrat. Manchin said he is most concerned about how Treasury will classify processing and manufacturing in determining eligibility for $7,500 EV tax credits. Manchin, who has often pushed fossil fuel industry interests in Congress, says he is trying to move the EV battery supply chain from China. His political opponents say he doesn't like the EV industry. "Manufacturing is meant to bring manufacturing back to the United States. It's not basically allowing everyone to put all the parts and build everything you can for that battery somewhere else and then send it here for assembly," Manchin told reporters. Reuters reported earlier the Treasury battery sourcing rules for electric vehicle tax credits, due out by Friday, will result in fewer vehicles qualifying for full or partial credits. Click here for the full story.
Kia Stores Are a Hot Ticket for Retailers
In an active dealership buy-sell market in the U.S., one mass-market brand is rising to the top of many buyers' wish lists, brokers say. It's Kia. Once known for its economically priced models with subpar quality and ho-hum styling, the Kia narrative has shifted through improved vehicle quality and dependability and the launch of nameplates such as the Telluride large crossover and EV6 electric compact crossover. And now interest in Kia stores is so strong the brand is being mentioned in the same realm as other acquisition blue bloods such as Honda, Toyota, and Porsche, reports Automotive News. Joe Ozog, president of Ozog Consulting said he has been calling on dealers at the end of each quarter for more than 20 years to see what their target brands are. Recently, for the first time, he said, Kia made the top three most requested brands. Some younger dealers think Kia is the next Toyota, he said. "Ten years ago, there was the Kia-Hyundai stigma," Ozog said. "This generation doesn't have a Kia-Hyundai stigma. They look at it as how Toyota and Honda were 10 years ago." Click here for the full story.
Used EV Shoppers Lack Critical Battery Health Information
As more electric vehicles hit the used-car market, dealers and buyers are starting to ask about the health and longevity of their batteries. But there is a dearth of information. The auto industry lacks a standard method and set of metrics for reporting battery health to shoppers of used EVs. For now, it's buyer beware. "It's a problem," said Gabriel Shenhar, associate director of the auto test program at Consumer Reports. "We get that question quite a bit" from readers but "dealers and manufacturers are loath to share data." "I'd like to see something more robust and assuring for used-EV buyers," Shenhar said. To be sure, a lack of information about a particular vehicle's history has long been an issue in the used-car market. Buyers don't see metrics on the wear of engines and transmissions in internal combustion vehicles, reports Automotive News. But the battery health question has taken on more urgency with the Inflation Reduction Act. The legislation includes a used-EV purchase credit of up to $4,000 or 30 percent of the price, whichever is lower. The credit only applies to used EVs sold by licensed dealers. Click here for the full story.
Dealer Inventory Supply Continues to Grow
Here’s something dealers haven’t heard for at least a few years: some manufacturers may have to start addressing a problem of too much new-vehicle inventory, according to Cox Automotive. Despite the perception that new vehicles remain in relatively short supply, several Detroit Three brands are above the industry average of 55 days’ supply, including GMC, Ford, Lincoln, and Ram, while Dodge is about 100 days, and Jeep, Buick and Chrysler are above 100 days, according to Cox Automotive. That should help quench dealers’ thirst for more inventory. More than half (59 percent) of dealership respondents to a recent Wards Intelligence survey report inventory shortages were the most issue they faced in the previous 12 months. An almost equal number (53 percent) predict lack of inventory will continue to be their biggest stumbling block. No manufacturer has hit the panic button signaling production shortfalls yet, but Charlie Chesbrough, senior economist for Cox Automotive, says the question for 2023 is becoming: Which brands, if any, will cut prices to increase sales? “Clearly, it’s a much different situation than a year ago” regarding inventory, he says. Click here for the full story.
Toyota’s February Output, Sales Recover on Improved Supplies
Toyota Motor Corp. said global output rose 1.4 percent in February as the Japanese automaker recovers from a shortage of semiconductors for automobiles and lingering disruption from the COVID-19 pandemic. The world’s largest automaker produced 896,712 vehicles last month. Global sales, including Daihatsu Motor Co. and Hino Motors Ltd., rose 10.5 percent to 856,376 units, reports Bloomberg. The numbers underscore Toyota’s global lead in selling combustion-engine vehicles just days before Lexus chief Koji Sato prepares to take over as chief executive officer and navigate the Japanese carmaker toward a future of electric vehicles and renewable energy sources. The big question is whether he can leverage Toyota’s current lead amid a once-in-a-generation shift in the global auto industry. Domestic sales and production rose year-on-year for the second month in a row, with Japan sales climbing 38 percent to 213,698 units, Toyota said. In February, Toyota maintained its forecast for output at 10.4 million units for the fiscal year ending this month. Click here for the full story.
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2024 Porsche Cayenne Unveils its New Interior with Available Passenger Display [Carscoops]
BMW Asked The Red Bull Driftbrothers to Help Develop the i5 [Carbuzz]
Review: The 2023 Toyota GR Corolla Is a Smoking Hot Hatchback [Fox News]
