AD #3720 - VW Delays Mass Production of ID.2all; Tesla Range Estimates Drop After EPA Changes Rules; Honda May Build EVs In Canada
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EV buyers no longer have to wait until tax time to get their EV tax credit. Under new rules, the buyer can hand over rights to the
credit to a dealership, which allows the dealer to apply the credit as a discount at the point of sale. The dealer is then later reimbursed by the
IRS. The amount is based on whatever that particular EV is eligible for,
which is up to seventy five hundred dollars for a new car or four thousand dollars for a used one, So it no longer matters how much taxes you pay on your income, and you can still get the full credit even if you owe on your taxes. But buyers that make over one hundred and fifty
thousand dollars a year on their own or three hundred thousand dollars as a married couple are not eligible for the credit, and it may also take some time to find an eligible deal to buy an EV from. Dealers have had since
September of last year to sign up with the IRS, and according to the Treasury Department, as of last Friday, eighty seven, hundred dealers filled out the paperwork, but there's estimated to be more than eighteen thousand franchise dealers in the US. However, with the new rules kicking into effect on January first,
the number of dealers that signed up jump thirteen hundred in only one week, so the rollout could be quick. It will also help that the IRS
just announced that it's giving dealers more time to get adjusted. It says dealers
have until January nineteenth to submit reports of eligible EV sales that took place between January first and January sixteenth. EV range estimates should start getting a little closer
to the real world numbers. The EPA changed its rules to clarify how it
defines a vehicle's drive modes for example, Eco normal in sport, and it forces an automaker to test all of those drive modes. The automaker will then
post the estimated range based on the average of the results, and it's already having an impact. Tesla released updated range estimates for the model as AX and
Y that are about six percent lower on average, and we expect to see more range updates, but it's likely to have less of an impact on legacy automakers because they've been more conservative with the range estimates. Volkswagen is delaying mass
production of its small affordable EV because of weaker emission regulations in Europe, which will allow it to sell cheaper IC models longer than expected. The EV,
based on the ID two ALL concept, was supposed to go into mass production in twenty twenty five, but now that won't happen until twenty twenty six.
According to German media, the original Euro seven emission rules would have made it difficult to make a profit on small ice vehicles because they would have required new components to meet the standards, but the autow industry successfully lobbied to weaken the rules so they could continue to sell small IC models profitably through the end of the decade. That's why VW decided to delay volume production of the ID two
ALL for a year, but it will still make the model in low numbers in twenty twenty five before ramping up production. Sticking with VW, the automaker
is reversing course on its EV pricing strategy in Europe. Last year, CEO
Oliver Bloomas said the company would not cut the prices of its evs to better compete with Tesla in Europe, but due to slowing demand, VW is cutting prices of its ID models in several countries in Europe, and some of the cuts are significant, and ID five in France now starts just over fifty thousand euros or eight thousand euros less than when it launched. And we'll have to
wait and see if these price cuts help boost sales. But Bloomberg is no
longer bullish on the Volkswagon Group's EV efforts. Back in June of twenty twenty
two, a Bloomberg intelligence analyst predicted that the VW group would pass Teslin EV sales this year, but now Bloomberg is forecasting that Tesla and BYD will lead the EV race for the next several years. And interestingly, even though BYD
passed Tesla and EV sales in the fourth quarter of twenty twenty three, Bloomberg expects Tesla to remain ahead of BYD in sales not just this year, but through the end of the decade. The Tagent Automotive Technologies we combine world class
composite materials expertise with cutting edge designs because frankly, there are better ways to lightweight vehicles, so lighten up with tag in automotive technologies the formula Better Mobility.
Last week, a group of thirty three US senators sent letters to non union car companies urging them to stay neutral with the uaw's organization efforts, and now the National Labor Relations Board is alleging that Lucid illegally fired to employees because they joined and supported the UAW. According to a filing last week, the
company also allegedly confiscated union literature and created the impression that the workers' activities were being monitored. Lucid denied the allegations and says it respects workers' rights to organize.
While the NLRB can reinstate the workers, it doesn't have the authority to issue fines or penalize executives. Honda plans to start building evs in North America
in Ohio starting in twenty twenty six, but it might also build them in Canada. According to Japan's nick A newspaper, the automaker is considering investing fourteen
billion dollars to build a new EV and battery plant in Canada. It wants
to make a decision by the end of the year and kick off production in twenty twenty eight, Autonomous trucking just took another step forward. Continental and Aurora
say they have finalized the design and architecture of their Level four av Systems kit for heavy duty trucks. The two companies first entered into a partnership last April
and will now start building prototype versions of the hardware at a new site in Texas, as well as other parts of the world. By twenty twenty seven,
they plan to start producing the avy kits as well as build up a service and maintenance network. Speaking of Continental, it's taking luxury display screens up
a notch. Instead of being housed in some sort of bezel or having no
frame at all, Continental is debuting the world's first automotive display fully embedded in Swarowsky crystal. The ten inch display features micro led technology that makes the content
on the screen look like it's floating, as well as facets cut around the border to give it a more premium feel. And premium is the kind of
interior you could expect to see this screen in. And don't miss our coverage
a CES, which just kicked off in Las Vegas, will be bringing you interviews and insights from experts and executives about the latest automotive tech the world has to offer. But that brings us to the end of today's show. Thanks
for making autoline a part of your day. Auto Line Daily is brought to
you by Bridgetone Solutions for your Journey, Intrepid Control Systems, Over the Air Engineering Boost your Game, and by Tajin Automotive Technologies the Formula for Better Mobility.
January ninth through twelve, twenty twenty four, Intrepid's looking forward to seeing you at our booth three six sixty six Las Vegas Convention Center in the West Hall. We'll be demonstrating the latest and greatest in the software defined vehicles and
zurnal architectures, automotive ethernet technologies like ten based T one S and multi Gigibbit cus CS twenty twenty four, Las Vegas Convention Center in West Hall, Booth three six sixty six or visit intrepidcs dot com slash sales
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