Treasury Modifies Vehicle Classifications in EV Tax Credit After Industry Pushback
The U.S. Treasury Department on Friday said it has modified how it is classifying vehicles that are subject to price caps in the Inflation Reduction Act's tax credit for consumers buying new electric vehicles. Automotive News reports, the department said it will now use the consumer-facing EPA Fuel Economy Label standard to determine whether a vehicle is a sedan, SUV, pickup, or van instead of using EPA corporate average fuel economy, or CAFE, standards. "This change will allow crossover vehicles that share similar features to be treated consistently," Treasury said. "It will also align vehicle classifications under the clean vehicle credit with the classification displayed on the vehicle label and on the consumer-facing website FuelEconomy.gov." Consumers who have purchased and taken delivery of vehicles since Jan. 1, 2023, that qualify under the new vehicle classification standard and who satisfy the credit's other requirements can still claim the credit, even if the vehicle didn't qualify under the previous vehicle classification standard, Treasury said. Click here for the full story.
Dealers and Buyers Are Both Worried Cars Are Too Expensive
A sharp rise in new-car prices since the pandemic has left many buyers fretting about vehicle affordability. Now, some dealers are fretting along with them. Some dealers say that elevated prices and a lack of affordable models already were keeping some prospective buyers away. Now, higher interest rates and falling used-car prices are making it even more difficult for customers to make the math work on a monthly payment. In some cases, buyers are canceling orders they placed before interest rates edged higher, dealers say. The Wall Street Journal reports, some auto retailers are trying to liquidate their used-car inventories before values fall further. The root cause of the lack of affordable options is the supply-chain disruption that has created new-vehicle scarcity in recent years, resulting in a seller’s market. Meanwhile, auto makers have cut output of vehicles at the lower end of the price scale, choosing instead to emphasize their most-profitable models. Dealers expect the pressure on new-car buyers will hurt vehicle sales until availability improves, which analysts say should lead car makers to offer more discounts. Click here for the full story.
Nissan to Buy Up to 15% Stake in Renault EV Unit Under Reshaped Alliance
Nissan and Renault on Monday unveiled details of their redesigned alliance, with the Japanese car maker committing to buy a stake of up to 15 percent in Renault's electric vehicles unit Ampere. The agreement, which also includes the previously announced reduction of Renault's stake in Nissan to make the two more equal partners, aims to make the alliance freer and more balanced for the next 15 years, Renault's CEO Luca de Meo said. While Renault bailed out Nissan two decades ago, it is the smaller automaker by sales, reports Reuters. "I consider that what we have agreed is a much better set-up than what we have had in the last past few years," de Meo told a presentation of the new-look alliance in London. "We have now a new governance scheme that is much more straightforward, we can now operate like a normal company. Seen from Renault, (it) is about regaining some strategic agility without breaking necessarily the ties and the synergies that were existing." Click here for the full story.
Toyota Sienna the Only Minivan in America to Get Latest IIHS Stamp of Approval
Only the Toyota Sienna's seatbelt reminder system is considered good enough in the minivan segment, according to the latest test results from the IIHS, beating out Honda, Kia, and Chrysler to the top spot. Carbuzz reports, the IIHS launched a new rating program in 2022 to encourage automakers to enhance car seatbelt reminder systems based on research that shows these reminders are effective in getting people to buckle up. Historically, seatbelt reminders haven't featured in arriving at overall safety ratings, despite research that proves their importance. The test protocol from the IIHS rates seatbelt reminders on the volume, duration, and timing of audible alerts and other warnings that encourage passengers to buckle up. Systems that detect unbelted passengers when the vehicle is moving, and respond with both an audible and visual signal alerting at a volume loud enough to be heard over background noise, get a Good rating. Other requirements are that the system should alert for at least 30 seconds when passengers undo their seatbelts in the front or second row while on the move — a common occurrence with children or teens in the back seats. Click here for the full story.
US Auto Trust Founder Invests in What He Loves — High-End Cars
A personal connection and an interest in cars were catalysts for an NFL team owner to enter automotive retail and quickly expand his dealership holdings via acquisitions. Ed Glazer, an owner of the NFL's Tampa Bay Buccaneers, founded US Auto Trust in Los Angeles in 2018 when he bought his first dealership, a rare Aston Martin store in Newport Beach, Calif. "I've always liked cars," Glazer told Automotive News. "I'm not a classic car collector, but always buy a lot of new cars. I've always owned a bunch of Aston Martins over the years and I got to know some of the people down in Aston Martin. Pendragon, a large publicly traded auto retailer in the U.K., was in the midst of divesting its U.S. dealership portfolio, including Aston Martin Newport Beach. "For a person who was never in the car business, to me this was perfect," Glazer, US Auto Trust's CEO, told Automotive News. "It's not a very big dealership with a brand that I love. And so we bought that." Click here to learn more about Ed Glazer and how he got in the automotive business.
Around the Web
The 872-HP Polestar 5 Will Have an Advanced LiDAR System [Carscoops]
Review: The 2023 Kia Telluride X-Pro Rides Higher Than Ever [Fox News]
Nissan's First EV with a Solid-State Battery Is Coming in 2028 [Carbuzz]
TikTok Reveals the Hottest EVs in the Industry [The Detroit Bureau]
