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VW, Rivian, Nissan, BMW, Genesis, Audi and Volvo lose EV tax credits starting tomorrow

The U.S. Treasury said Monday that Volkswagen, BMW, Nissan, Rivian, Hyundai and Volvo electric vehicles will lose access to a $7,500 tax credit under new battery sourcing rules. The Treasury said the new requirements effective Tuesday will also cut by half credits for the Tesla Model 3 Standard Range Rear Wheel Drive to $3,750 but other Tesla models will retain the full $7,500 credit. Vehicles losing credits Tuesday are the BMW 330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf , Rivian R1S and R1T, Volkswagen ID.4 as well as the plug-in hybrid electric Audi Q5 TFSI e Quattro and plug-in hybrid (PHEV) electric Volvo S60. The Swedish carmaker is 82%-owned by China’s Zhejiang Geely Holding Group. The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs. Hyundai said in a statement it was committed to its long-range EV plans and that it "will utilize key provisions in the Inflation Reduction Act to accelerate the transition to electrification." Rivian declined to comment and the other automakers could not immediately be reached for comment. Treasury also disclosed General Motors electric Chevrolet Bolt and Bolt EUV will qualify for the full $7,500 tax credit. GM said earlier it expected at least some of its EVS would qualify for the $7,500 tax credit under the new rules, including the 2023 Cadillac Lyriq and forthcoming Chevrolet Equinox EV SUV and Blazer EV SUV. Treasury said all GM EVs will qualify. Earlier, Ford Motor and Chrysler-parent Stellantis said most of their electric and PHEV models would see tax credits halved to $3,750 on April 18. Treasury confirmed the automakers' calculations. The rules were announced last month and mandated by Congress in August as part of the $430 billion Inflation Reduction Act (IRA). The IRA requires 50% of the value of battery components be produced or assembled in North America to qualify for $3,750, and 40% of the value of critical minerals sourced from the United States or a free trade partner for a $3,750 credit. The law required vehicles to be assembled in North America to qualify for any tax credits, which in August eliminated nearly 70% of eligible models and on Jan. 1 new price caps and limits on buyers income took effect.

Buyers ditching expensive European sedans to buy expensive American trucks

The New York Times ended the automotive week with a story that adds numbers and context to a range of other stories, from the crossover craze to the increasing median price of a new car to ever more grandiose pickup trucks. The NYT piece reveals that the shift to larger vehicles isn't merely about the average U.S. buyer swapping the midsize sedan for a Ford Edge. Luxury buyers are migrating from plush sedans to plush SUVs and trucks that creep close to six-figure prices, and the Detroit Three are running Treasury presses because of it. From 2013 to 2017, the truck category — everything from pickups to minivans — climbed from 30 percent of the market to 41 percent. In January of this year, trucks claimed 66 percent of new vehicle sales. At the milk-and-honey end of profits, GMC alone accounted for 11.3 percent of all vehicle sales over $60,000, not just trucks. That puts the luxury truck maker behind Mercedes-Benz and Ford, The Blue Oval's feasting on Lariat, King Ranch and Raptor versions of the F-150, which make up more than half of that pickup's sales, putting it ahead of Chevrolet, Porsche and Lexus on the high-dollar sales list. The average transaction price of a GMC in Denali trim last year was $56,000; it's easy to see why, when one dealer told the NYT he just swapped a 2012 BMW 550i for a $71,000 GMC Sierra Denali. That truck starts at $52,900. The NYT started its story with a buyer who took home a Ford Raptor instead of an Audi A6, and optioned that $50,020 Ford Raptor close to $80,000. Over at Lincoln, the new $72,055 Navigator — the one so popular that Ford will increase production — crossed hands for an average sale price of $77,000 in January. And a Jeep dealer told the NYT that the two $93,000 Trackhawks he had on his lot "won't be here more than a few weeks." While trucks head up in sales volume and price, cars are headed so viciously in the opposite direction that "the Detroit Three and even some foreign manufacturers acknowledge they are now losing money on many of the cars they sell." So ... get ready for a lot more crossovers and trucks. Related Video: Find out what vehicle is right for you. Give our Car Finder tool a try.

Autoblog Minute: FCA issues Uconnect software update amid hacking fears

Carjacking has gone wireless, as automakers and Congress scramble for a solution after a disturbing video on Wired showed a pair of researchers controlling a Jeep Cherokee remotely. Autoblog's Adam Morath and David Gluckman report on this edition of Autoblog Minute. Show full video transcript text [00:00:00] Carjacking has gone wireless, as automakers and Congress scramble for a solution. I'm Adam Morath and this is your Autoblog Minute. Cars with wireless connections are susceptible to remote hacking, as demonstrated in a disturbing video on Wired.com. The segment showed two researchers remotely controlling a Jeep Cherokee, including running vehicle's the wipers, turning up the music, and ultimately shutting down [00:00:30] the Jeep while it was being driven on the highway by Wired senior writer Andy Greenberg. Washington took note. A press release issued from the desks of senators Ed Markey and Richard Blumenthal introduces legislation protecting drivers from auto security privacy risks. Fiat Chrysler, parent company of Jeep, has a solution for its customers. For more we go to Autoblog's David Gluckman. [GLUCKMAN INTERVIEW] Chrysler has worked with the Uconnect cellular provider Sprint to plug security holes on the carrier side. The vehicles themselves can't be updated wirelessly, so [00:01:00] the remaining changes require physical access. For that, customers have three options: One, download the Uconnect software update to a USB stick and install. Two, wait for FCA to send a USB stick with the latest software that they can install, or third, visit a dealer. Owners should do what they're most comfortable with. I made a video that walks through the whole process from download to install and it took about a half hour. [MORATH] David's full video tutorial of how to install the Uconnect fix can be seen on Autoblog. [00:01:30] It remains to be seen how the rest of the auto industry will respond to these security risks. For Autoblog, I'm Adam Morath. Related Video: Autoblog Minute is a short-form news video series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals.