Cars Clips: November 13, 2024

 

 

How to save money with the Inflation Reduction Act before Trump is in charge — “Currently, dozens of vehicles qualify for a $3,750 or $7,500 tax credit. (The Energy Department has a full list here.) Eliminating that tax credit would require an act of Congress, but a Trump administration could also change the Treasury Department’s tax requirements, making fewer vehicles eligible. Ingrid Malmgren, the senior policy director for Plug In America, an EV advocacy group, said one of the most vulnerable tax credits is 45W — which allows carmakers to claim a credit for leasing EVs to consumers. Over the past couple of years, that credit has made electric-vehicle leases cheaper than gas car leases in some cases. A list of the EVs with the lease incentives is available here. Consumers who want to lease an EV for lower-than-normal prices — or buy a new or used EV — should do so quickly, she said. ‘It’s going to be a real durability test of the Biden administration’s policies.’” [Washington Post, 11/13/24 (=)]

 

Trump’s Tariffs Could Deal a Blow to Mexico’s Car Factories — “But Mexico’s pivotal role in the global auto industry is now at risk. President-elect Donald J. Trump has threatened to impose punitive tariffs of 100 percent or higher on cars from Mexico, which would violate a trade agreement his first administration negotiated with Canada and Mexico. Video The BMW factory in San Luis Potosí has 3,700 employees.CreditCredit...Bénédicte Desrus for The New York Times The consequences for the auto industry would be profound, affecting the price in the United States of popular models like Ford Maverick pickups, Chevrolet Equinox sport utility vehicles and several variations of Ram trucks.” [New York Times, 11/12/24 (=)]

 

 

Zeldin, Trump’s pick as EPA head, was a bit player on environment — “Zeldin’s reference to artificial intelligence foreshadows a repeal of the Biden administration’s regulations on new natural gas- and existing coal-fired plants, which were finalized earlier this year and require operators to eventually capture 90 percent of their carbon dioxide emissions. These rules, as well as others under the Clean Air Act, have been criticized by Republicans for potentially forcing the retirement of coal and affecting reliability of the electricity system. After remaining flat for decades, electricity demand has increased in recent years, in part because of demand from data centers. Experts predict increasing use of AI to further drive up demand. Trump has promised to ‘end the electric vehicle mandate,’ perhaps by repealing other EPA regulations, including those governing tailpipe carbon emissions standards from the automotive industry.” [Roll Call, 11/12/24 (=)]

 

 

General Motor Co. (GM)

 

GM to recall more than 461,000 vehicles over transmission issues, NHTSA says — “General Motors (GM.N), opens new tab will recall 461,839 vehicles over an issue with transmission, the National Highway Traffic Safety Administration said on Wednesday. The recall involves some models of 2020-2022 Chevrolet Silverado, GMC Sierra, 2021 Cadillac Escalade, Chevrolet Tahoe and GMC Yukon, among others. The transmission control valve on the impacted vehicles may fail causing the rear wheels to lock up, the NHTSA said, which would increase the risk of a crash.” [Reuters, 11/13/24 (=)]

 

GM opened a lab to prevent software bugs in new vehicles. Here's how it works — “General Motors Co. has developed a software-testing lab inside its Global Technical Center that it's replicating elsewhere, including in GM's Silicon Valley office, to prevent bugs from entering new vehicles and affecting customers. The lab was born out of GM's software struggles, which included a stop sale on the Chevrolet Blazer EV for intermittent issues with in-vehicle screens and DC fast charging at certain public stations.” [Detroit News, 11/12/24 (=)]

 

Lucid Group

 

Lucid CEO: Many EVs In America 'Frankly Suck' — “Lucid Motors' CEO Peter Rawlinson isn't someone who sugarcoats things. Whether it's about rotobaxis or EV pickups, the executive likes to let his perception—or, as he believes, the reality—of the industry rip. Next up on his roast list: electric cars sold in America. According to Rawlinson, the choices Americans have for EVs suck. His words, not mine. And it all comes down to being offered a plethora of otherwise watered-down battery-powered cars that could have been so much more. We're talking about better range, better quality, better performance. Just plain better. But instead, we got various forms of The Blob.” [Inside EVs, 11/12/24 (=)]

 

Rivian Automotive, Inc.

 

Volkswagen and Rivian Form Joint Venture, Deepening Alliance — “Volkswagen, the German automaker, and Rivian, a California-based maker of electric pickups and S.U.V.s, said on Tuesday that they would form a joint venture to develop software and electronics, extending a partnership they announced in June. Volkswagen said it would increase its investment with Rivian to $5.8 billion from $5 billion, which will include a 50 percent stake in the joint venture. While short of an acquisition, the new company broadens the alliance with Rivian and could foreshadow similar partnerships between other established carmakers and new companies struggling to become profitable.” [New York Times, 11/12/24 (=)]

 

Rivian CEO issues urgent memo to confront existential threat of climate change — “Rivian knows building EVs is not enough. On Tuesday, Scaringe issued an urgent call to action, saying now must be the time to make history. Scaringe says we are alive during one of ‘the most significant moments in recorded human history.’” [Electrek, 11/12/24 (=)]

 

Tesla, Inc.

 

Tesla recalls over 2,400 Cybertrucks in sixth callback this year — “Tesla (TSLA.O), opens new tab said on Wednesday it was recalling 2,431 Cybertruck electric pickup trucks in the United States as loss of drive power could increase the risk of a crash, in its sixth such move this year. Last month, the EV maker said it would recall more than 27,000 Cybertrucks in the United States due to delayed rear-view camera images that could impair driver visibility and increase crash risks. A fault in the drive inverter in Cybertrucks manufactured between Nov. 6, 2023 and July 30 this year could cause the part to stop producing torque when the driver uses the accelerator pedal, resulting in a loss of propulsion and increasing the risk of a collision, Tesla said in a report.” [Reuters, 11/13/24 (=)]

 

Bloomberg | Hertz misses estimates as losses mount from failed Tesla bet — “The company posted an adjusted loss of 68 cents a share in the third quarter, more than the 46-cent average deficit estimated by analysts. Hertz took a $1 billion non-cash impairment charge during the quarter, largely due to the decline in fleet residual values over the last year, the company said. The company attributed the charge to a push to sell cars in its fleet that have lost value, including Tesla Inc. EVs. Hertz shares fell 10% in morning trading on Tuesday. The results mark Hertz’s fourth-straight quarterly loss, highlighting the toll of the company’s failed strategy to electrify its fleet with EVs from Tesla. New Chief Executive Officer Gil West has been working to fix the damage by selling tens of thousands of those cars while overhauling the company’s management team.” [Detroit News, 11/12/24 (=)]

 

 

EV Sales & EV Transition

 

Global EV sales up 35% in October, Europe ekes out a gain — “Global sales of fully electric and plug-in hybrid vehicles rose 35% in October from the same month last year, led by a 54% jump in sales in China, market research firm Rho Motion said on Wednesday. European sales rose just 0.8%, but were up in annual terms for the second straight month and the research firm expects a good end to the year in the region, data manager Charles Lester told Reuters. WHY IT'S IMPORTANT The European auto sector is facing challenges including high production costs, managing the shift to EVs, and an influx of lower-cost vehicles from Chinese rivals.” [Reuters, 11/12/24 (=)]

 

 

California

 

Newsom’s Hail Mary to defend California from Trump — “There are 68 days left for California to insulate its nation-leading pollution rules as best it can from President-elect Donald Trump — and Gov. Gavin Newsom is feeling the heat. Newsom went to Washington on Tuesday to offer President Joe Biden a friendly reminder that come Jan. 20 — Trump’s first day in office — California will lose its power to enforce a big swath of its climate and clean air rules.” [Politico, 11/12/24 (=)]

 

Connecticut

 

Lamont says he's unlikely to pursue electric vehicle mandates in Connecticut after Trump win — “Lamont said the controversial federal emissions standards, which the Democratic majorities in the General Assembly abandoned earlier this year because of the required accelerated adoption schedule, are likely to be shelved for the time being. Asked whether he would try to revive the state's adoption of the California standards when the General Assembly convenes in January, Lamont said no. ‘There will be a discussion,’ Lamont said. ‘We were following the federal standards and I think the federal standards are no more.’ In March, state lawmakers gave up on making a law to require EV plug-ins by 2035. It ended months of legislative bickering over the issue, the opposition to which was seized by minority Republicans in an election year.” [New Haven Register, 11/12/24 (=)]

 

north Carolina

 

Piedmont Lithium slashes more jobs as it seeks funding partner for Carolina mining project — “Piedmont Lithium is cutting more jobs as it looks for a funding partner for its North Carolina mining project near Charlotte in a ‘challenging’ market with low lithium prices. The Belmont-based lithium mining company has cut a total of 48% of its workforce this year, said Piedmont’s Chief Financial Officer Michael White said Tuesday during the company’s third-quarter earnings call.” [Charlotte Observer, 11/12/24 (=)]

 

 

‘Fossil Fuels Are Still Winning’: Global Emissions Head for a Record — “One year after world leaders made a splashy promise to shift away from fossil fuels, countries are burning more oil, natural gas and coal than ever before, researchers said this week. Global carbon dioxide emissions from fossil fuels are on track to reach a record 37.4 billion metric tons in 2024, a 0.8 percent increase over 2023 levels, according to new data from the Global Carbon Project. It’s a trend that puts countries farther from their goal of stopping global warming. The increase was not uniform across the globe. Emissions will most likely decline this year in the United States and Europe, and fossil fuel use in China slowed. Yet that was offset by a surge in carbon dioxide from India and the rest of the world.” [New York Times, 11/12/24 (=)]

 

Opinion: Electric Vehicle Rule Mixes Bad Economics, Unlawful Overreach — Donald Kochan wrote, “Despite courts becoming increasingly skeptical of the authority claimed by administrative agencies, some such as the Environmental Protection Agency are working to reconfigure the nation’s economy through dubious claims of statutory authority. For example, Donald Trump’s win in the 2024 presidential election has little short-term effect on the EPA’s rule creating an electric vehicle mandate. Because the EV mandate is in a promulgated final rule, and it takes a rule to revoke or replace a rule, the incoming administration can’t just revoke the mandate. The rule remains in effect until the long and difficult process of conducting a new full notice and comment rulemaking to change it.” [Bloomberg Law, 11/13/24 (-)]

 

 

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