White House Details Term That Could Slash Eligibility for EV Tax Credits

First Up 11/30/23

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The Jim Ellis Automotive Group announced the launch of its seventh annual Holliday Giving Campaign, which supports the Atlanta Community Food Bank. From Nov. 24, 2023, to Jan. 2, 2024, each of their 20 family-owned dealerships will contribute a portion of every new or pre-owned vehicle sale to the food bank. This initiative is part of the group’s tradition of supporting local charities during the holiday season. For every $1 donated, the Food Bank will be able to provide up to three meals for neighbors in need.  Since 2006, Jim Ellis Automotive has contributed $320,000 to multiple organizations through this campaign. In a statement, Jim Ellis Automotive Group vice president Stacey Ellis Hodges said, “It’s hard to imagine a child going to bed hungry. We hope this donation can bring holiday cheer to a child and their family in a time of need.” Hodges continues, “Every child deserves a full belly and a happy heart. Together, we want to give the gift of love.” Click here to read the full article.

White House Details Term That Could Slash Eligibility for EV Tax Credits

The Biden administration on Friday issued vital guidance for automakers on how strictly it will enforce a provision that blocks consumer tax credits for electric vehicles that contain battery materials from foreign adversaries such as China. Broadly, the guidance gives automakers more certainty as they invest billions in domestic EV and battery manufacturing and rethink their supply chains, in part to ensure their vehicles qualify for tax credits. However, the tougher eligibility restrictions likely will slash the number of EVs that qualify as soon as next year, reports Automotive News. Starting Jan. 1, EVs are ineligible for a tax credit of up to $7,500 if any of the battery components are made or assembled by a "foreign entity of concern," which covers China, Iran, North Korea, and Russia. In 2025, the exclusion applies to critical minerals that are extracted, processed, or recycled by one of those entities. As part of the proposed guidance released Friday, the U.S. Treasury Department said it was adopting the Energy Department's definition of a foreign entity of concern that is being used to implement a $6 billion battery materials processing and manufacturing grant program in 2021's infrastructure law. Click here for the full story.

2024 Polestar 3 Preview Drive Review: Polestar's Real Future Starts Here

To get an idea of how Polestar will evolve in the coming years, look no further than the 3. Referred to as the brand’s core, it inaugurates an approach to design, technology, and handling that will trickle down to future models. It also takes Polestar out of the tiny pool of carmakers that don’t offer an SUV, so it will play a crucial role in helping the young Volvo off-shoot increase its sales on the American market. What took Polestar so long to enter the SUV segment? Autoblog asked company CEO Thomas Ingenlath. “Somewhere you have to start the company, and you cannot have everything at the same time. If we had just the 3, people might come up and ask me, ‘Thomas, wouldn’t it be nice to have a more affordable Polestar?’ That’s the 2. Once you have everything it’s great, but you have to build it up bit by bit.” Polestar unveiled the 3 in October 2022, so we already know what the SUV looks like; no surprises here and no camouflage needed. Click her for the full story.

Amazon Drives into Retail Auto Business

Hyundai’s announcement that its dealers sell vehicles on Amazon made big news. While details of that partnership are still thin, it is expected to expedite an already-occurring evolution in auto retailing. Partnerships between huge retailers and dealerships are not new. The Costco Auto Program has been working with dealerships for more than three decades and it continues to evolve, representatives say. Amazon’s partnership with Hyundai allows its dealers to sell vehicles to Amazon’s some 250 million daily shoppers directly through the online retailer’s site. But both Amazon and Hyundai emphasize that the dealer, not Amazon, is the actual retailer. “The local dealer is the seller of record,” an Amazon spokesperson tells Wards. While the Costco Auto Program and the Amazon/Hyundai cooperation are similar in that each works with dealers to sell their available inventory rather than directly sell vehicles, there are many differences, Rick Borg, executive vice president of the Costco Auto Program, tells Wards. “The biggest difference is, we provide a saving, prearranged pricing through our exclusive network,” he says. “What we bring to the dealership and our members is a transparent process and value in pricing and process.” Click here for the full story.

 

Nissan to Offshore Next-Gen Leaf EV Production

Nissan helped pioneer mass manufacturing of electric vehicles in the United States when it began producing the Leaf hatchback in Smyrna, Tenn., more than a decade ago. But Nissan will not build the reincarnation of America's first volume EV in North America, sources told Automotive News. U.S. production of the current-generation Leaf is scheduled to end in mid-2025. Nissan has said the next-generation Leaf will be built in Sunderland, England, for the U.K. market. But the automaker has not announced where that vehicle will be exported. "We look forward to sharing more about our future product lineup in due course," spokesperson Brian Brockman said. The decision to pull Leaf production from the U.S. could be costly for Nissan and slow its EV comeback in the world's second-largest auto market. An imported Leaf would lose eligibility for an up-to-$7,500 U.S. federal tax credit that's available for North America-made battery electric vehicles under the IRA enacted last year. That EV subsidy is critical for a brand with a price-sensitive customer base, said a Nissan dealer who asked not to be identified. The retailer said the biggest impediment to mass-market EV adoption is a lack of affordability. Click here for the full story.

Around the Web

These Are the Slowest-Selling Used Cars in America [Autoblog]

North America's First Wireless Charging Road Debuts in Detroit [Car and Driver]

The 2024 Audi SQ8 E-Tron Is an Electric Family Hauler With a Touch of Luxury [Bloomberg]

How Lexus Racing Won the 2023 GTD Pro Manufacturers Championship [Maxim]

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