New EV Rules Mean Fewer Models Eligible for Tax Credit
The Biden administration detailed new criteria for an electric-vehicle tax-credit program, a change that officials said they expect will reduce the number of eligible models. The new rules, issued by the Treasury Department Friday, aim to make the U.S. less reliant on batteries and critical minerals shipped from China. Click here to read the rules. For car buyers to claim the full $7,500 tax credit, the batteries must contain set amounts of components made in North America and critical minerals sourced in the U.S. or from certain countries. The criteria will take effect on April 18, when a list of models that qualify for the tax credit will be issued, reports The Wall Street Journal. John Bozzella, president and chief executive of the Alliance for Automotive Innovation said only few of the electric-vehicle models that are currently for sale will qualify for the full credit under the new criteria. Bozzella added that he doesn’t yet know which makes and models will. Individual auto makers will report to the government in the coming days which models meet the mineral and battery-component requirements. Click here for the full story.
Americans Love to Buy More Car Than They Need. It's Making Electric Cars More Expensive.
Americans tend to think a bigger car is a better car. The most popular vehicle segments in the U.S. are SUVs and pickup trucks. The Ford F-Series has been the country's top-selling vehicle for more than 40 years — followed last year by the Chevrolet Silverado, Ram pickup lineup, and Toyota RAV4. So given that a large vehicle is what a good portion of the US population is looking for, it's no surprise that rule applies to electric vehicles, too. It's one reason EV adoption has only been creeping up in the US, barely hitting almost 6 percent in 2022. A lot of prospective EV buyers just haven't yet found the types of EVs they're looking for. They don't necessarily need more luxury electric sedans — they want the trucks and SUVs they're used to. "Up until recently, we really didn't have much optionality in that from an EV perspective," Steve Patton, EY America's mobility sector leader, told Insider. "It's no surprise and no coincidence that most of the new models being introduced or planned to be introduced over the coming months are around that segment because that's what we as U.S. consumers want to purchase." Click here for the full story.
Manchin Steps Up Clash with Biden Over Electric-Car Tax Credits
Senator Joe Manchin stepped up his fight with the Biden administration over its implementation of the president’s signature climate bill in a way Manchin says over-emphasizes clean energy technology, turns away from fossil-fuel production and spends too much. “They just want to throw caution to the wind and put more money out and throw more money from the Treasury and credits that basically are not going to accelerate how quickly that we can be totally self-reliant,” Manchin, a Democrat of West Virginia, said on “Fox News Sunday.” Bloomberg reports, in separate comments on CNN’s “State of the Union,” Manchin wouldn’t rule out taking legal action to stop the administration’s interpretation of the legislation. “I’m looking at every option I possibly have to make sure that that bill is fulfilled and basically implemented the way it was intended to,” he said. The law in question is the Inflation Reduction Act, or IRA, passed last year with support from Manchin after he, Senate Majority Leader Charles Schumer and Biden hammered out a deal behind closed doors that circumvented the usual legislative process. Click here for the full story.
Top 150 Dealership Group Rankings Change After Buy-Sell Flurry
Acquisitions and improved new-vehicle availability helped Keating Auto Group's new-vehicle sales soar 19 percent in 2022 — sending it 13 spots up Automotive News' latest list of the top 150 dealership groups based in the U.S. Keating Auto, of Victoria, Texas, bought seven dealerships in late 2021, all in Texas, and Ben Keating, the group's owner, credited those purchases, which included three high-volume Hyundai stores, as a big reason for the company's growth last year. Keating's 2021 acquisitions followed three dealership purchases in 2020. "That was a lot for us," Keating told Automotive News. "We still feel like we are digesting those purchases." And yet Keating continues to look for more dealerships and even made a couple of offers on stores this year, though those efforts haven't resulted in any new deals. Keating Auto is among dozens of dealership groups seeking growth through store acquisitions and driving consolidation in automotive retail. The effects of that accelerating consolidation are stamped all over Automotive News' updated dealership group ranking — from deal-making juggernaut Lithia Motors taking over the top spot from longtime leader AutoNation to the companies on the list hitting new milestones in the collective market share they command. Click here for the full story.
Nissan, Renault Confident of Finalizing Alliance Deal Soon
Japanese automaker Nissan and France's Renault are confident the agreements on reshaping their alliance will be signed soon, they both said on Friday. They were responding to a report by Japanese news agency Jiji which said the final contract to reboot their alliance may be delayed until April or later due to extended discussion on intellectual property, including for electric vehicles. "The two companies are currently working well together towards the signature of all the definitive agreements. They are confident this will be reached shortly," Nissan said, a comment echoed in a statement by Renault. Neither gave a date, reports Reuters. After months of intense talks, they agreed in January on a sweeping remake of their two-decade-old alliance that will see Renault reduce its stake in Nissan to 15 percent from about 43 percent to put them on equal footing. The partnership, which has grown to include junior member Mitsubishi Motors, was founded in 1999. Nissan and Renault also announced in February that the Japanese automaker would buy a stake of up to 15 percent in Renault's electric vehicle unit Ampere. Click here for the full story.
As Many as 153,000 Catalytic Converters Stolen in 2022
Recent media reports vastly undercounted catalytic converter thefts in the U.S., new CARFAX data shows. Thieves removed the devices from as many as 153,000 vehicles in the U.S. in 2022, far more than earlier estimates. CARFAX data scientists reviewed catalytic converter replacements from millions of service and maintenance records to arrive at this number.
Criminals steal catalytic converters because of the precious metals – platinum, palladium, and rhodium – contained inside each device. Thieves can cut them from beneath vehicles in a matter of seconds, leading to a rude awakening for vehicle owners. Once the converter is removed, not only will the car make a loud noise when started, but it can cost owners thousands of dollars to replace that missing catalytic converter – especially if consumers don’t have the right type of car insurance.
To help consumers, CARFAX has compiled a nationwide list of the top 2022 targets for these precious-metal thieves:
1. Ford F-Series pickup trucks
2. Honda Accord
3. Toyota Prius
4. Honda CR-V
5. Ford Explorer
6. Ford Econoline vans
7. Chevrolet Equinox
8. Chevrolet Silverado
9. Toyota Tacoma
10. Chevrolet Cruze
Correction: On March 31, we incorrectly published “Hyundai Wants Current Cars to Spy on People So it Can Build the Ultimate Self-Driving Vehicle” The headline should have read: “Honda Working on the Ultimate Self-Driving Vehicle.” You can view the correct article here.
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