The electric vehicle tax credit’s worst enemy will stop at nothing, Tesla’s doubling down on Semi production in nevada, and Volvo has a big recall on its hands. All that and more inside The morning shift for Wednesday 25 January 2023.
1st gear: Manchin is not happy
Automakers have been able to do this since the beginning of 2023 Bypass battery procurement rules splitting the state EV tax credit in half. As a result, a number of vehicles that would not normally qualify have temporarily benefited from the full $7,500 rebate and may continue to do so through March, when the U.S. Treasury Department plans to provide battery manufacturing guidance to manufacturers. Once the Treasury does that, the party’s over.
West Virginia Senator Joe Manchin, who has campaigned to make the Inflation Reduction Act’s EV credit as exclusive as possible, seems to hate the fact that buyers can take a break in the next five or six weeks. he hates it so great that he proposed yet another bill just to enforce the full IRA requirements immediately. courtesy Automotive News:
The bill — titled the American Vehicle Security Act — would amend the Inflation Reduction Act so that the effective date of required electric vehicle battery procurement is no longer tied to the Treasury Department’s release of proposed guidance on restrictions.
If it goes into effect, retroactive to January 1, credit would not be available for any new electric vehicle that does not meet critical mineral and battery sourcing requirements.
An aide to the Democratic Committee said on Tuesday Automotive News The bill has not yet had bipartisan support or co-sponsors as it has not been shared outside of internal discussions. It was also not communicated to any representative of the auto industry, said the consultant.
The Treasury Department plans to issue proposed guidance on the critical requirements for mineral and battery components of the excise tax credit in March after missing the year-end 2022 deadline. It will also issue a proposal for rulemaking that will further clarify important provisions already in place, how price caps and how vehicles will be classified.
Given how complex the bill is, one would hope that the government would take the time needed to clarify its language for businesses and consumers. A lot depends on it. But Manchin’s interest in credit ends with “energy security” – whether anyone can do that claim it is secondary to why the IRA was written that way If possible, exclude every current EV from the discount. Fitting, given where the senator’s loyalty lies. Here’s what he had to say in a statement released Wednesday morning:
In a statement Wednesday, Manchin said it was “unacceptable” that the Treasury Department has yet to issue the proposed guidance but is continuing to provide the full $7,500 credit.
The Inflation Mitigation Act “is first and foremost an energy security law, and the electric vehicle tax credits were designed to increase domestic manufacturing and reduce our reliance on foreign supply chains for the critical minerals needed to manufacture electric vehicle batteries,” he said .
There will be no need to expand domestic battery production if nobody can afford electric vehicles in the next five years, which was the case probably the plan all along.
2nd gear: Tesla is here to stay (in Nevada)
Tesla has big plans for its Nevada plant, where it has invested $6.2 billion since construction began on the site in 2014. In addition to expanding the production of 4680 battery cells for passenger cars, the hope is in this factory one Nevada becomes the hub for the automaker’s electric Semi manufacturing. Of the Wall Street Journal:
Tesla Inc. said it will spend more than $3.6 billion to expand its plant near Reno, Nevada, where the electric vehicle maker assembles batteries and makes components for electric cars.
The Elon Musk-led automaker said its investment plan would expand its lithium-ion battery and electric vehicle component facilities there and employ 3,000 additional workers.
One of the factories to be built would mass-produce its tractor-trailer truck, while the other would produce enough batteries for two million passenger cars annually, Tesla said in a blog post on Tuesday.
The company has invested $6.2 billion in Nevada since 2014 and the 5.4 million square feet of facilities built there. In addition, the company has hired more than 11,000 employees over the past nine years to produce approximately 7.3 billion battery cells and 3.6 million power units.
Nevada’s expansion plans come shortly after the company filed for a potential $775 million expansion of its electric vehicle plant near Austin, Texas, which will also focus on battery and auto component production.
Tesla’s Semis reportedly began production in October, and Pepsi — the electric vehicle maker’s first customer — expects to field 100 of them later this year.
3rd Gear: These are the brakes for Volvo
Volvo on Tuesday announced a recall of nearly 107,000 cars worldwide, including 2023 versions of the C40, XC40, S60, V60, XC60, V90 and XC90. 27,500 of these are in the US and the problem is with the brake control computer. courtesy Kelley Blue Book:
The problem, Volvo tells federal safety agencies, begins when the computer performs a self-test to make sure it’s properly grounded. If the test returns an error, it can enter an error state that shuts down multiple electronic security systems.
Volvo says: “The driver display always warns the customer with DIM messages and malfunction lights when this problem occurs.”
Volvo is not aware of any accidents or injuries related to the issue.
The good news is that the remedy is delivered over-the-air, as any software remedy should. On the one hand, it makes certain recalls much easier to deal with these days. On the other hand, it means Automakers feel encouraged to play fast and loose with this stuffbecause it’s easy enough to patch later.
4th Gear: Ethiopia files unsatisfactory 737 Max report
The U.S. National Transportation Safety Board isn’t too pleased with Ethiopia’s report investigating its flagship Boeing 737 Max crash in March 2019, arguing that it “didn’t adequately consider the performance of the flight crew” and handling of emergency procedures that contributed to the tragedy. from Reuters:
NTSB chairwoman Jennifer Homendy said in an interview that Ethiopia’s Bureau of Aircraft Investigations (EAIB) made mistakes in its report.
“We believe they didn’t really address the flight crew’s performance issues and whether they were adequately prepared,” Homendy said. “We felt it wasn’t as comprehensive and robust as it could have been.”
The 2018 and 2019 MAX crashes in Indonesia and Ethiopia, which cost Boeing more than $20 billion, resulted in a 20-month grounding for the best-selling plane, lifted by regulators after Boeing made changes to software and pilot training. Boeing declined to comment Tuesday.
The NTSB was not given an opportunity to review or comment on Ethiopia’s final report before it was released last month, in violation of rules overseen by the Montreal-based United Nations Civil Aviation Administration, ICAO, Homendy said.
In December, the Boeing 737 Max were 7 and 10 jets cleared to fly without installing an Engine Indicating and Crew Alerting System — a technology that “tells pilots what’s wrong on board an airplane and also gives pilots instructions on how to fix the problem,” per JustFly. It would likely have cost the company at least $1 billion. However, a condition of Washington Senator Maria Cantwell mandated that “a synthetic Enhanced Angle-of-Attack (AOA) system and the ability to disable stall warnings and overspeed warnings” be implemented by airlines and funded by Boeing within three years of aircraft certification.
5th gear: European Ford plant has some admirers
The plant in Saarlouis, Germany, which currently probably builds the Ford Focus won’t be doing that in a few years. Ford of Europe was honest in its consideration of a sale and the business could soon lay off up to 3,700 workers from his payroll in the region. But look, don’t worry about Ford – it’s going to be fine. There are already interested parties from outside Saarlouis! from automobile weekabout Automotive News:
According to sources familiar with the talks, Magna International and contract manufacturer VDL Nedcar are interested in taking over Ford Motor Co.’s car plant in Saarlouis.
The two companies, along with China’s BYD, are showing interest in the factory, which won’t have a new model when Ford stops producing its Focus compact car there in 2025.
The future of the plant has been unclear since June last year, when Ford chose its plant in Valencia, Spain, to build its next-generation electric vehicles for Europe instead of Saarlouis.
Canada’s Magna and Netherlands-based VDL Nedcar are considering bidding for the Saarlouis plant, sources familiar with the talks told Automotive News sister publication Automobilwoche.
Magna builds BMW, Mercedes-Benz, Jaguar, Toyota and Fisker vehicles at its Magna Steyr plant in Graz, Austria.
VDL Nedcar builds the X1 and Mini brand cars for the BMW Group.
BYD is reportedly a frontrunner as Ford officials expect to visit the Chinese electric-vehicle maker next week to discuss the potential sale.
Back: The Dakar
On this day 55 years ago, Israel’s submarine “Dakar” disappeared in the Mediterranean Sea between Crete and Cyprus. It was not discovered until 19999,800 feet deep.
Neutral: I really want to see a Super GT race once in my life
It has the coolest cars of any form of motorsportundoubtedly, with the best finishes and Race on the most beautiful racetracks. Sega had an arcade game based on Super GT in Japan a few years ago and this is it in order (You can play it if you know your way around an emulator) but the soundtrack goes so hard I couldn’t stop listening to it for days.