More U.S. Lawmakers Urge Pelosi to Back Union EV Tax Credit

First Up 10/13/21

Beltway Talk Podcast: What's the Big Deal About EV Tax Credits?

AIADA board member and Ohio auto dealer John Connelly joins the Beltway Talk podcast to discuss his career as a criminal-lawyer-turned-auto-dealer, the value of advocacy, and why he needs fellow dealers to pay attention to Washington’s latest scheme to single out certain EVs for special tax credit treatment. Connelly highlights why it matters to lawmakers when dealers speak up, and what he likes about being an auto dealer. Listen and subscribe to future episodes here. 

More U.S. Lawmakers Urge Pelosi to Back Union EV Tax Credit

More than 100 U.S. House lawmakers on Tuesday urged Speaker Nancy Pelosi to keep a $4,500 tax credit incentive for union-built electric vehicles (EV) in a massive spending bill. In a letter seen by Reuters, 107 Democrats urged Pelosi to retain the credit supported by the United Auto Workers (UAW) union, the AFL-CIO and U.S. automakers. The $4,500 credit would provide a significant boost to Detroit's three automakers – General Motors Co, Ford Motor Co, and Chrysler-parent Stellantis. Last month, 12 major foreign automakers, including Toyota Motor Corp, Volkswagen AG, Honda Motor, Hyundai Motor, and Nissan Motor, urged Democrats to reject the proposed $4,500 tax incentive and have been lobbying lawmakers to reject the union incentive. A House panel last month approved legislation to boost EV credits to up to $12,500 per vehicle, including $4,500 for union-made vehicles and $500 for U.S.-made batteries. Read more here (Source: Reuters). 

Dealers and their employees should contact their Members of Congress and urge them to oppose this proposal that will divide American workers and play politics with car sales. Click here to learn more about the issue and to contact your legislators. 

Volkswagen CEO Warns Shift to Electric Vehicles Could Cost 30,000 Jobs

Volkswagen's CEO Herbert Diess told a supervisory board meeting in September that the company could lose 30,000 jobs if it transitioned too slowly to electric vehicles (EVs), two sources with knowledge of the matter told Reuters on Wednesday. Competition from new entrants to Germany's market, like Tesla, has pushed the company to speed up its transformation, Diess is said to have told attendees. The U.S. EV maker plans to produce 500,000 cars a year in Germany with 12,000 employees, while Volkswagen's 25,000 produce just 700,000 cars at its Wolfsburg plant. "There is no question that we have to address the competitiveness of our plant in Wolfsburg in view of new market entrants," Volkswagen spokesperson Michael Manske said, pointing to Tesla and new Chinese automakers making inroads into Europe. "Tesla is setting new standards for productivity and scale in Grunheide," he said, referring to a Tesla factory under construction near Berlin which at peak capacity will produce 5,000 to 10,000 cars a week - more than twice the German battery-electric vehicle (EV) production in 2020. Read more here (Source: Reuters). 

Fla. Dealer Wins $16M Award Against Genesis Over Open Points

Hyundai Motor America must pay $16 million in damages to an Orlando, Fla., dealer who was denied right of first refusal for two Genesis brand open points, a jury ruled in a court case there. Hyundai said it will appeal the verdict. According to Automotive News, the 2018 case, Action Nissan Inc. and William Nero vs. Hyundai Motor America and Genesis Motor America, focused on whether the automaker had reneged on a previous agreement to offer Nero two open points for the Genesis brand in addition to any rights as owner of Universal Hyundai in Orlando. The jury in U.S. District Court, Orlando Division, found that Hyundai had reached a settlement with Nero in 2009 on a separate matter, and that the agreement included right of first refusal if Hyundai established a luxury brand within a decade. The jury verdict in early October also found that Hyundai did establish the Genesis luxury brand within that time frame and had breached an agreement with Nero on the open points. Read more here (Source: Automotive News). 

LG to Pay Up to $1.9B in General Motors Over Bolt EV Battery Fires

LG Electronics has agreed to reimburse General Motors up to $1.9 billion to recall and fix Chevrolet Bolt electric vehicles due to fire risks caused by faulty batteries provided by the South Korean supplier, reports CNBC. Problems with the Bolt – the company’s flagship mainstream EV – have led the automaker to recall every one of the electric cars since production began in 2016. Fixing the vehicles, including completely replacing some batteries entirely, is expected to cost $2 billion, GM said Tuesday. That’s up from a previous estimate of $1.8 billion. The settlement between the companies is a major win for the automaker, which missed Wall Street’s expectations in the second quarter due to setting aside money related to the expected recall costs. As a result of the agreement, GM will recognize an estimated recovery in the third-quarter that will offset $1.9 billion of $2.0 billion in charges associated with the recalls. The automaker previously said it was  pursuing reimbursement from LG. Read more here (Source: CNBC). 

ADESA's Improved Inspection Process Facilitates Faster Recon Work

ADESA recently announced the addition of OBD2 emissions codes to the condition reports of vehicles inspected at ADESA locations. The codes will now be directly added from the scan at the point of inspection and displayed on ADESA condition reports. Ultimately, OBD2 scans give sellers and buyers deeper information to help understand the root cause(s) and magnitude of vehicle issues. When armed with OBD2 information during inspection, sellers can easily make reconditioning decisions for their vehicles before they go on sale and add value to their vehicles. Even if they choose not to pursue any reconditioning work, buyers who review the condition report will have higher confidence in its accuracy – which will potentially lead to more bidding activity. It’s a win-win. To sign up with ADESA, visit   

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