Nutson's Weekly Auto News Review August 7-13, 2022
 |
EV Tax Credits; Revamped EV tax credit explained clearly By Larry
 |
LEARN MORE: Complete versions of today's news nuggets, along with thousands of pages of relevant news and opinions, information stored in a million-page library published and indexed on The Auto Channel during the past 25 years. Complete information can be found by copying a headline and inserting it into any Site Search Box.
Nutson's Automotive Weekly Auto News Wrap-up - Week Ending August 13, 2022 Below are the past week's important, relevant, semi-secret, or snappy automotive news, opinions and insider back stories presented as expertly crafted easy-to-understand automotive universe news nuggets.
* The Schumer-Manchin Bill with revamped EV tax credit passed the Senate and was sent to the House of Representatives who passed the billing party lines. Now it's off to the President for signing. The Inflation Reduction Act ends per-manufacturer limits for the $7,500 tax credit for electric vehicle purchases, a boost for electric vehicle makers. But the vehicles will have to be built in North America and carmakers will have to quickly end a reliance on China for the battery supply chain.
* Key items as they affect electric vehicles are:
- The $7,500 electric vehicle tax credit is actually now a rebate or discount and is renewed starting in January 2023 and will last until the end of 2032.
- The previous cap of 200,000 cars per manufacturer is removed.
- The discount credit can be applied upfront at the point of sale if purchased from a dealer. As a tax credit a buyer needed to pay the full vehicle cost up-front and wait to file for it on your taxes in the following April.
-EVs must be assembled in North America and that certain components and “critical minerals” in the battery must come from the US or a country with a free trade agreement with the US.
- Vehicles must have an MSRP of under $55K for cars and $80K for SUVs and trucks, buyers can only take advantage of the discount credit if they make under $150K a year if single or $300,000 if married.
- Now applies to used EVs, with a credit of up to $4,000 on cars priced $25K or less, and subject to a number of other requirements.
All of this applies additionally to plug-in hybrids as long as they fulfill the same requirements and have a battery over 7kWh. It is reported that about 70% of the EVs on the market today do not qualify for the rebate due to the North America assembly along with the battery materials sourcing requirements.
* And then, the European Union expressed concern that the new U.S. discount credit plan aimed at encouraging Americans to buy electric vehicles would discriminate against European producers and break World Trade Organization rules. To qualify, the bill requires that electric vehicles should contain a battery built in North America with minerals mined or recycled on the continent.
* The national average cost of regular gasoline now stands at $3.99 a gallon, according to AAA. That’s still higher than it was a year ago but well below a peak of nearly $5.02 in mid-June. The average price has fallen for 58 consecutive days. More than half the cost of gasoline at the pump is determined by global oil prices, which have tumbled to their lowest point since the war in Ukraine began in February. Nearly two-thirds of people in a recent AAA survey said they had altered their driving habits because of high prices, mostly by taking fewer trips and combining errands
* The average price paid for a new vehicle in the U.S. in July 2022 topped June’s record and kept the average transaction price (ATP) solidly above the $48,000 mark, according to new data released by Kelley Blue Book, a Cox Automotive brand. The Kelley Blue Book new-vehicle ATP increased to $48,182 in July 2022, beating the previous high of $48,043 set last month. July prices rose 0.3% ($139) from June 2022 and 11.9% ($5,126) from July 2021.
* As Reuters reports: The front ends of SUVs and pickup trucks are getting brawnier and taller, and that is exacerbating the safety risks for children who could get in front of a vehicle, but be invisible to the driver, U.S. Sen. Richard Blumenthal wrote in a letter to federal regulators. Blumenthal suggested that NHTSA require forward-facing blind spot cameras to complement rear-facing cameras currently mandated under federal rules. Pedestrian deaths are rising - a trend that puts pressure on the industry to do more to mitigate the risks posed by larger vehicles. But the rules requiring back-up cameras took years to put into effect.
* We reported last week that California regulators have accused Tesla of falsely advertising that its Autopilot and “Full Self Driving” (FSD) technologies are equivalent to autonomous vehicle control. In complaints made public Friday, the California Department of Motor Vehicles proposed suspending Tesla’s license to sell its vehicles in the state - one of its largest markets - and requiring the company to pay refunds to owners.
* Paying above MSRP is leaving car buyers with strong negative feelings toward auto brands and dealerships. As the competition for new cars of almost every make and model reaches a fever pitch, a growing number of auto shoppers are paying list price – and sometimes more – just to secure a vehicle. This may seem like a windfall for dealers and manufacturers – but new research from GfK AutoMobility reveals that the phenomenon may be having serious longterm impacts on customer affinity and loyalty. The research says: 34% paid fees they had never heard of before; 31% purchased a model that wasn’t their first choice; 30% compromised on the features they wanted; 30% bought from a dealer who wasn’t their first choice. Not surprisingly, all of these concessions and disappointments are making an impression on auto purchasers – but the depth of their resentment may surprise sellers and manufacturers alike. Three in ten (31%) buyers who paid above MSRP said they would tell others not to go to the dealership they used – roughly double the level (14%) for those who simply paid MSRP. GfK found equally strong negative feelings toward car brands themselves. One-quarter (27%) of those who purchased above MSRP said they would never buy the same brand again, compared to just 10% of those who simply paid the suggested price.
* The Detroit Free Press reports GM has been tacking $1,500 onto many new vehicles to cover a new connectivity package. The package is listed under options, but isn't optional at all. Since June 2, all new Buick and GMC vehicles in the U.S. have been including three years of an OnStar and Connected Services Premium Plan found on the window sticker under "options & pricing" for $1,500. The $1,500 will be charged whether the customer activates the OnStar and Connected services or not, GM OnStar spokeswoman Kelly Cusinato told the Free Press. If you're confused, there are more details here. GM calls $1,500 OnStar plan optional — but new car buyers are being forced into it
* Do you have the urge to head out on the highway and take road trip? Instead of closing your eyes and choosing wherever your finger ends up pointing on a map, trust that your astrological sign will take you where you need to be. Travel and Leisure magazine gives us "The Best Road Trip for Each Zodiac Sign."
* The Detroit North American International Auto Show organizers are adding a new “Air Mobility Experience” to the September show. This “Show Above the Show” will have flight demonstrations and displays by six air mobility companies. It will take place over the Detroit River, in Hart Plaza and in Huntington Place. The show will feature electric vertical take-off and landing (eVTOL) aircraft, amphibious sport planes, hoverbikes, hoverboards and jet suits. As always, keep your seatbelts fastened while seated.
* NBC Chicago reports a social media challenge has led to a surge of thefts of some Kia and Hyundai vehicles in Cook County, Illinois with authorities saying such crimes have risen a startling 767%. Hundreds of people in Cook County had their Hyundai or Kia vehicles stolen this summer. “The TikTok challenge is just basically teaching people how to do it, which is pretty crazy,” said Roe Conn, Cook County Sheriff’s Office spokesperson. The sheriff’s office said thieves have been targeting vehicles that require a physical key to start
* Due to unforeseen weather conditions Speedweek 2022 was officially cancelled. And so it was announced by the Southern California Timing Association at the start of this week. Frequent thunderstorms have left the salt lake bed too wet to drive on and hold the 2022 Bonneville Speed Week land speed racing on the Salt Flats.
* Street Outlaws: Fastest in America" star Ryan Fellows was killed in a car crash during filming for the popular Discovery show. The crash happened just outside Las Vegas. Ryan was racing another driver in what was the 8th out of 9 races scheduled for the night for the show. Fellows was driving a gold Nissan 240z and lost control near the finish line. Ryan's vehicle rolled and caught fire. Onlookers were unable to get him out on time.
Stay safe. Be Well.
