Stricter electric vehicle credit rules have been delayed in the Inflation Control Act

Image for article titled The Reducing Inflation Act The most stringent electric vehicle credit rules have been deferred

picture: Drew Angerer (Getty Images)

The early months of 2023 could be the best time to get your hands on that dream electric car, as Hertz is in hot water for an alleged fall in recalls, and Tesla is closing in on its Mexican factory. All that and more in this Tuesday’s edition of morning shift On December 20, 2022.

First gear: welcome delay

In just over a week, the federal road tax credit for electric cars is changing hands again under the evolving rules of the Inflation Reduction Act. Starting in January, GM and Tesla vehicles will again be eligible for discounts. On the flip side, caps depending on the type of vehicle—$55,000 for sedans and $80,000 for SUVs, vans, and vans—also come into play.

2023 will also trigger new terms about battery sources. It will no longer be enough for a vehicle to undergo final assembly in North America — going forward, EVs will need to source at least half of their battery components from the US or FTPs, and 40 percent of their “critical metals” from similar origin. Satisfying one of these independently nets a $3,750 discount, but you’ll have to achieve both to get the full discount.

There is only one hitch. These rules, along with all others, were supposed to go into effect in about 10 days, but the US Treasury Department has announced that it is delaying issuing specific guidance on battery-related matters until March. This means that a number of electric vehicles that would not qualify under the IRA may be for the first three months of 2023. From Reuters:

The Treasury said that by December 31 it would “release information on the expected direction” of the rules. It said that “critical battery and metal components requirements only take effect after the Treasury that proposed the rule is issued.”

[…]

It remains unclear whether the Treasury Department will answer other questions by Dec. 31, including whether it will allow automakers to take advantage of clean commercial vehicle credits by leasing cars to consumers.

Given the government still needs to figure out how all this relates rentalsObviously, there is still more work to be done. So if you’re spooked by the new credit that’s supposed to encourage the sale and use of electric cars Be written in a way that clearly discourages the sale and use of electric vehiclesLooks like a window of opportunity has just opened.

Second gear: Hertz may have leased unmaintained cars

Reuters reported Tuesday that the National Highway Traffic Safety Administration is seeking information about whether Hertz has leased cars to customers who were recalled but not repaired. Through Auto News:

The agency said the case involved Ford Explorer and Nissan Altima vehicles, but did not disclose the number of vehicles involved. NHTSA said the recall issues involved include latches and locks.

Hertz, which operates the Hertz, Dollar and Thrifty rental car brands, said it is “reviewing NHTSA’s request for information. We are committed to providing safe rentals for our customers.”

NHTSA said in a statement on Tuesday that in late 2021 it began receiving information indicating Hertz may have leased cars to customers without performing all required safety recall repairs on those vehicles.

The agency added, “Information the agency has collected to date, including from vehicle manufacturers, indicates that repairs required under NHTSA safety recalls were not performed prior to these affected vehicles being leased to Hertz customers.”

As the article explains, rental companies with fleets of more than 35 vehicles must make all recall-related repairs prior to leasing to customers, in accordance with the 2015 law. This news follows…frustrated Stories about hertz that have been lately Force them to settle for wrongly arresting customers She allegedly stole her rental cars.

Third gear: Tesla Mexico is imminent

The electric vehicle maker could lay out a plan to build its next manufacturing facility in Nuevo León, Mexico state by the end of the week, according to Reuters. Tesla CEO Elon Musk has been seen in the area for the past few months, Fraternization with local officials. The initial investment is expected to fall between $800 million and $1 billion, he said Reuterswith total investments likely to reach $10 billion.

A source told Reforma that the Mexican Gigafactory, which is planned on the outskirts of the city of Monterrey, will begin with building components for existing Tesla models, and possibly later build a new model at a lower cost than other factories.

A federal official told Reuters that Tesla will release news of its planned investment when it’s ready, but it won’t necessarily be before Christmas.

If the announcement is not made on Friday, it could come in January, according to Reforma.

Mexican Foreign Minister Marcelo Ebrard said earlier this month that Musk has toured three states in Mexico to scout the plant sites.

Tesla stock looks like A catcher can still be used to care about the companywhich may have caused him to push for such an advertisement just before the holiday break.

Fourth gear: The Lyriq is priced a bit cheaper for 2024

When Cadillac introduced the Lyriq, it started at just under $60,000. That wasn’t supposed to be the price for an all-electric SUV, however, and after early adopters got their orders in, the price jumped slightly to $62,990. auto body Lyriq’s base price is down for 2024, which GM has since confirmed.

Cadillac is now taking pre-orders for the 2024 Lyriq, and the rear-engined, single-engine model is slated to start “around $60,000,” according to the consumer website and confirmed by a Cadillac spokesperson. Pre-orders for the two-engined, all-wheel-drive 2024 model are said to start at “around $64,000.” This means that not only will the 2024 price go up to $70,000, but it actually appears to be lower than the 2023 price.

Cadillac spokesperson Paige Tattoli told Motor Authority, “We adjusted the pricing to reflect the content of the vehicle. All in order to make it more competitive for the segment.” Standard and optional features, specs, and colors for the 2024 Lyriq haven’t been released yet, but a lower price likely means less equipment.

We don’t know what the 2024 Lyriq might lose to the 2023 model, but if GM is really honest… Pass distribution efficiencies to the consumer In the form of lower prices, perhaps the upcoming Lyriqs will retain all of their previously standard equipment.

Fifth gear: Hyundai is laying off Russian factory workers

Some automakers have literally given up their Russian manufacturing holdings to local firms, but Hyundai still operates its St. Petersburg plant. The Korean automaker has laid off an undisclosed number of employees at that facility, Reuters reported. The facility has been idle since March. via Auto News one more time:

“Due to the continued suspension of production, Hyundai Motor is taking steps to improve its employee numbers in Russia,” Hyundai’s Russian unit said in a statement.

He did not say how many employees would be laid off.

About 2,600 people built Hyundai and Kia vehicles at the plant, which has a capacity of about 200,000 vehicles annually.

South Korean media reported in October that Hyundai was considering options for its Russian operations, including the sale of its industrial plant.

Renault received 1 ruble ($0.014) for selling its stake in AvtoVAZ earlier this year, while Nissan earned one euro in selling it to NAMI. Both buyers are state-owned, although AvtoVAZ was not always there. The company operated as a subsidiary of Renault for a few years, until it returned under Moscow’s control in May, for the first time since 1990.

Reverse: Another Studebaker (USA)

They say it was completed in South Bend, Indiana on this very day in 1963, 59 years ago. The city’s future looked bleak without the manufacturer, but a massive federally-backed retraining program, coupled with a swell of new investment in South Bend and its healthy corporate workforce, saved it. In the recent months that followed the company, Studebaker directed all production through its factory in Hamilton, Ontario.

Neutral: Someone is buying this real life Ridge Racer a car

Image for article titled The Reducing Inflation Act The most stringent electric vehicle credit rules have been deferred

It might be DeTomaso Guarà The most fake video game car ever, in that it looks like a mysterious amalgamation of four or five different Italian and French sports cars and somehow ends up looking better than all of them. This is one For sale now in the NetherlandsAt a fantastic €155,000.

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