New EV Tax Credits Raise Fear of a ‘Messy Scenario' in Dealers' Showrooms
With the transition to a new, tougher-to-meet — and "incredibly confusing," as one dealer put it — tax credit for electric vehicles starting this week, some U.S. auto retailers are left scratching their heads as they wait for more guidance from automakers and the federal government. "It just creates a lot of confusion that we have to try to explain when it should have just been simple and straightforward," said Cody Lusk, president and CEO of AIADA .This creates a messy scenario on the showroom [floor], for dealers and customers, because customers think that this is going to be provided to them by the federal government," he told Automotive News. "In reality, it isn't going to be for a while — if at all." Acura dealer John Connelly said many retailers have customers put down deposits for new vehicles still on order because of low inventories and production delays caused by the chip shortage. But for EVs eligible for the old tax credit, "that's where the confusion lies," he said. "Is that person who bought in that time period, are they contracted for that vehicle, or did they just simply get a spot in line?" Click here for the full story.
Hyundai Motor May Speed Up Construction of U.S. EV Plant
A new U.S. law excluding electric vehicles assembled outside North America from tax credits could persuade South Korea's Hyundai Motor Co to bring forward the start-date for construction of an EV and battery plant in the United States to as early as this year. Reuters reports Hyundai Motor said in May that it would break ground on its new facility in Georgia in early 2023, with commercial production starting in the first half of 2025 with an annual capacity of 300,000 units. But the company is now considering starting construction later this year to begin commercial production in the second half of 2024. President Joe Biden signed into law on Aug. 16 a $430 billion bill, which ends tax credits for about 70 percent of the 72 EV models that were previously eligible. As a result, EVs sold by Hyundai Motor, Kia Corp, Toyota and others are no longer eligible for the tax credits. South Korean Foreign Minister Park Jin expressed concerns over the new U.S. legislation during a call with U.S. Secretary of State Antony Blinken last week. Click here for the full story.
Volkswagen Lines Up Tariff-Friendly Battery Supplies in Deal with Canada
Volkswagen Group has sealed an agreement with Canada to secure access to raw materials such as nickel, cobalt and lithium for vehicle and battery production. Automotive News reports the memorandum of understanding will be signed during German Chancellor Olaf Scholz’s current trip to Canada and is designed to shorten supply chains for VW’s facilities in the U.S. and avoid difficulties linked to tariffs and tax regulations, said one of the people, who asked not to be identified discussing confidential information. The move has partly been prompted by new rules that President Joe Biden signed into law last week, the person added. Volkswagen and Canadian government leaders have scheduled a virtual press conference for Tuesday "to announce an agreement to jointly advance electric mobility in the country." Automakers such as VW and Stellantis have embarked on ambitious plans to make batteries. VW is planning six facilities in Europe alone, while Mercedes-Benz Group has joined Stellantis in a $7 billion battery venture and is pursuing a total of eight facilities globally. Click here for the full story.
How Mercedes and Ferrari Are Using Tech Too Good for F1 Cars Inside EVs
Mercedes and Ferrari are fierce rivals on the Formula 1 circuit, but outside, the two brands don't often intersect. Mercedes sells a handful of cars that compete directly with Ferrari models. Ferrari is too busy producing hypercars to compete with Mercedes on volume. Despite the lack of similarity between the two brands, each has realized the benefits of new axial flux motors for their hybrids and EVs, like the Mercedes-Benz EQS. Carbuzz reports we've known about the use of these motors by both brands for some time. Ferrari currently uses one in the SF90 Stradale. Mercedes also uses them in a handful of its cars. The reason is simple. They're lighter and more powerful than the more common radial motor. "The power-to-weight ratio is really a record number, and much better than conventional motors," Markus Schaefer, Mercedes's Chief Technology Officer, said. Here, Schaefer is talking about Merc's upcoming AMG-specific EV platform. "It will make use of the small size of the motor," Schaefer concluded. The benefits of an axial motor are evident once you have a loose understanding of how these motors work. Click here for the full story.
OEMs Can Avoid Greenwashing with Supply-Chain Scrutiny
Driven by growing demands from investors and consumers, automakers increasingly are expected to take steps to establish environmental, social, and governance (ESG) programs and deliver responsible products to the market. However, businesses run the risk of broadcasting unsubstantiated claims about products to gain a market advantage or sharing only select sustainability metrics to obscure other negative impacts. This practice is commonly known as greenwashing. Manufacturers often think greenwashing is a deliberate attempt to mislead the public and does not apply to their company. However, the opposite is true: Greenwashing can happen accidentally any time they don’t have deep visibility into the sustainability of their product and cannot provide credible proof to back up marketing claims. Even responsible automakers are at risk of greenwashing without sufficient data to support their statements. Wards reports in most industries, the majority of a manufacturer’s environmental footprint is located within its supply chain, according to research cited in the UN Principles for Responsible Investment. With some of the most complex supply chains in the world, automotive companies must commit significant resources to tracking parts, contacting suppliers and managing supply chain data. Click here for the full story.
Around the Web
Seen at Monterey Car Week 2022 [Automotive News]
Test Shows Physical Buttons Are Less Time-Consuming in Cars Than Touchscreens [Car and Driver]
When the American Dream of the Open Road Hits Traffic [NY Times]
Nissan’s Electrified Future Lineup of Sports Cars and Pickups Looks Incredibly Exciting [Motortrend]
