Committee Chairman Seeks Guidance on “Foreign Entities of Concern”
In a letter this week to Treasury Secretary Janet Yellen, House Ways & Means Committee Chairman Jason Smith (R-MO) has urged that the Treasury Department issue guidance to prevent geopolitical foes from benefitting from the Clean Vehicle Tax Credit incuded in the Inflation Reduction Act. Beginning in 2024, in order to qualify for the CVTC, vehicles cannot have battery components manufactured or assembled by a foreign entitiy of concern, and in 2025 cannot contain critical minerals extracted, processed, or recycled by a foreign entitity of concern. The auto industry is also seeking more clarity on the new rules.
UK Delays Gas Car Ban
Also this week the United Kingdom delayed by five years its ban on the sale of gas and diesel cars by 2030. Prime Minister Rishi Sunak announced the move this week, which pushed the deadline back to 2035, and put the U.K. more in line with other European countries.
Government Shutdown
With only about a week left for Congress to avoid a government shutdown, divisions among the House Republican majority continued to prevent any significant progress this week. The government could shut down on October 1st if a deal is not reached to either pass individual appropriations bills or a short term extension, known as a continuing resolution, by September 30th.
UAW Strike
Many in Congress and the administration continue to closely watch the strike by the United Auto Workers as it enters its second week. The UAW, which initially went on strike at three plants, has said that the strike will expand if progress toward a deal is not made by noon today.
Quote of the Week
“While I do not agree with the policy that provides massive taxpayer-funded subsidies for electric vehicles, certainly we should be able to agree that taxpayer funds should not flow in a way that benefits the Chinese Community Party (CCP) or other entities who do not share our aligned interests. Treasury guidance should make clear in the most comprehensive way possible that taxpayer subsidies cannot flow to foreign entities of concern through any structuring mechanism conceivable.”
-Rep. Jason Smith (R-MO), Chairman, House Ways & Means Committee (Politico)
ICYMI
In case you missed them, check out some of the most recent AIADA AutoTalk webinars:
Interest Market Update (Bank of America)
The Art & Science of the Appraisal (ACV)
Charlie’s Quarerly Market Update (Cox Automotive)
Friday Feel Good
Here is just one recent example of how dealers are doing good:
Cleo Bay Subaru of Killeen made a $16,000 donation, in partnership with the Subaru Share the Love initiative, to Wreaths for Vets, which honors deceased service members and their relatives by placing wreaths at graves within the Central Texas State Veterans Cementary.
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
