Manchin sets high bar for Tesla and GM electric-car tax credits | Auto Finance News Manchin sets high bar for Tesla and GM electric-car tax credits | Auto Finance News
Auto Finance News

No products in the cart.

Subscribe
  • Home
  • News
    • All News
    • Capital & Funding
    • Compliance & Regs
    • EVs
    • Exec of the Year
    • Innovation & Technology
    • Powersports
    • Risk Management
    • Sales & Marketing
  • Events
    • Auto Finance Summit East
    • Auto Finance Summit
    • Powersports Finance Summit
    • Equipment Finance Connect
  • EXCELLENCE
    • Best Practices
    • Columns
      • Strategy Upshift: Georg Bauer
      • Under The Hood: Marcie Belles
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Data
  • Magazine
    • Latest Issue
    • Features
    • New Tracks
    • Car Culture
    • Staffing Shuffles
    • Under The Hood
    • Spotlight
    • Issue Archive
  • Podcast
AFN PLUS
Log In
No Result
View All Result
Auto Finance News
  • Home
  • News
    • All News
    • Capital & Funding
    • Compliance & Regs
    • EVs
    • Exec of the Year
    • Innovation & Technology
    • Powersports
    • Risk Management
    • Sales & Marketing
  • Events
    • Auto Finance Summit East
    • Auto Finance Summit
    • Powersports Finance Summit
    • Equipment Finance Connect
  • EXCELLENCE
    • Best Practices
    • Columns
      • Strategy Upshift: Georg Bauer
      • Under The Hood: Marcie Belles
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Data
  • Magazine
    • Latest Issue
    • Features
    • New Tracks
    • Car Culture
    • Staffing Shuffles
    • Under The Hood
    • Spotlight
    • Issue Archive
  • Podcast
AFN PLUS
Log In
No Result
View All Result
Auto Finance News
No Result
View All Result

Manchin sets high bar for Tesla and GM electric-car tax credits

Bloomberg News by Bloomberg News
August 2, 2022
in Risk Management
Reading Time: 3 mins read
0

It was tempting when Democrats announced their surprise climate deal to imagine American auto executives popping champagne bottles. But any bubbly probably ought to stay on ice until Washington finalizes the fine print of the bill that would lift the cap on tax credits for electric vehicles.

Just three months ago, Senator Joe Manchin said it would be “ludicrous” to extend the $7,500 incentive with inflation running hot and automakers struggling to keep up with demand. That comment all but dashed the hopes of car companies that had been lobbying the Biden administration to lift the 200,000-vehicle limit at which the perk begins to wind down. Tesla, GM and Toyota have crossed that threshold; Nissan and Ford are closing in.

While Wednesday’s news represented sweet relief, it’s still unclear just how stingy this bill will be about eligibility. For EVs to qualify, their batteries will need to contain minerals extracted from or processed in a country the US has a free trade agreement with, and a portion of components to be manufactured or assembled in North America.

This would kick in next year, and the content requirements would be made tougher after 2024. This will be tricky, because while automakers and battery manufacturers are spending billions on new North American factories, many of these facilities are still being planned and constructed. China — America’s trade nemesis — accounts for almost three-quarters of manufacturing capacity for lithium-ion batteries and more than half the world’s capacity to refine lithium.

Manchin may have come around, but he’s setting the bar high for carmakers, requiring them to use a domestic supply chain that hasn’t fully materialized yet.

“This ties that noose a little tighter,’’ said Jeff Yambrick, a former executive at Chinese battery maker Svolt, who’s now running a startup that sets up cell factories and supply chains for firms operating in the US. “You have to do things in America.”

The legislative text released this week could change before it wins approval by Congress. But it’s clear Beijing is on Washington’s mind. Manchin himself told Bloomberg’s Steve Dennis that the EV credits are designed to keep China from dominating battery components and critical minerals.

While this level of scrutiny on China is no surprise, it could be a headache for Contemporary Amperex Technology Co. Ltd. and its customers. The giant Chinese company has been scouting factory sites in North America and just reached a deal to supply lithium iron phosphate batteries to power Ford’s Mustang Mach-E sport utility vehicles and F-150 Lightning pickups.

Manchin and his fellow China hawks must be careful not to go too far and set content targets that push the auto industry deeper into the arms of Chinese suppliers, said Abigail Wulf, the director of critical minerals strategy at Securing America’s Future Energy, a Washington-based nonprofit that advocates for US energy independence.

“If this isn’t enacted properly, with the right amount of finesse, we’ll be even more beholden to China,” Wulf said in an interview. “We want to make sure this is workable for the auto companies.”

Bloomberg reached out to seven automakers about the bill, most of which said they’re still getting their arms around it. In its current form, it would lift the EV sales cap at the end of this year and extend availability of the credits by a decade.

“If you look at the landscape as it exists today, it’s a challenge, but it’s doable,” said Joe Britton, the head of the Zero Emission Transportation Association, which advocates for EV adoption. “We can meet these metrics.”

–By Gabrielle Coppola and Ari Natter (Bloomberg)

–With assistance from Joe Deaux (Bloomberg)

Tags: electric vehiclesTesla
Previous Post

Nicholas Financial direct originations rise 10%  

Next Post

Credit Acceptance origination volume climbs 22%

Related Posts

Equipment Financers remain optimistic despite recession talks
Risk Management

Equipment Financers remain optimistic despite recession talks

February 3, 2023
An employee works inside the kitchen at a hotel in New York.
Risk Management

US payrolls surprise with surge as jobless rate hits 53-year low

February 3, 2023
© Can Stock Photo / Erstudio
Risk Management

Affordability concerns expected to push out terms

January 30, 2023
Next Post
© Can Stock Photo / Stocksolutions

Credit Acceptance origination volume climbs 22%

STAY INFORMED WITH OUR NEWS ALERTS

COLUMNS

Auto fintech investments slump in 2022

January 24, 2023
© Can Stock Photo / welcomia

Under the Hood: EV adoption threatens residual values

December 20, 2022

INNOVATION & TECHNOLOGY

© 2019 Bloomberg Finance LP

Capital One doubles down on digital with Navigator Platform

February 3, 2023
via Santander Consumer USA website

SCUSA, AutoFi prep national rollout of direct-to-consumer marketplace

February 1, 2023

RISK MANAGEMENT

Equipment Financers remain optimistic despite recession talks

Equipment Financers remain optimistic despite recession talks

February 3, 2023
An employee works inside the kitchen at a hotel in New York.

US payrolls surprise with surge as jobless rate hits 53-year low

February 3, 2023

SPONSORED

© Can Stock Photo / Ajlber

Q&A with CCC Intelligent Solutions VP of Lender Services Rick Evans

December 7, 2022

Your SaaS, Covered: Risk Decisioning through Economic Uncertainty

June 8, 2022
Drive a better consumer experience in auto financing with instant decisioning

Drive a better consumer experience in auto financing with instant decisioning

May 9, 2022

About

ABOUT US

PRIVACY TERMS

ADA COMPLIANCE

CODE OF JOURNALISM ETHICS

Manage Cookie Consent

Contact Us

ADVERTISE

HELP CENTER

Follow Us

twitter linkedin podcast
© 2023 Royal Media
No Result
View All Result
  • Home
  • News
    • All News
    • Capital & Funding
    • Compliance & Regs
    • EVs
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Powersports
    • Risk Management
    • Sales & Marketing
  • Events
    • Auto Finance Summit East
    • Auto Finance Summit
    • Powersports Finance Summit
    • Equipment Finance Connect
  • Excellence
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest Issue
    • Features
    • New Tracks
    • Car Culture
    • Staffing Shuffles
    • Under The Hood
    • Spotlight
    • Issue Archive
  • Podcast
  • Data
  • +PLUS
  • SUBSCRIBE
  • Log In / Account

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Powered By MemberPress WooCommerce Plus Integration
THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
CookieConsentPolicy1 yearUsed to apply end-user cookie consent preferences set by our client-side utility.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
LSKey-c$CookieConsentPolicy1 yearUsed to apply end-user cookie consent preferences set by our client-side utility.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
__cf_bm30 minutesThis cookie, set by Cloudflare, is used to support Cloudflare Bot Management.
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid2 yearsVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
__Host-GAPS2 yearsThis cookie allows the website to identify a user and provide enhanced functionality and personalisation.
_dc_gtm_UA-1038974-31 minuteUsed to help identify the visitors by either age, gender, or interests by DoubleClick - Google Tag Manager.
_fbp3 monthsThis cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
fr3 monthsFacebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
test_cookie15 minutesThe test_cookie is set by doubleclick.net and is used to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextIdneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
caf_ipaddrsessionNo description available.
citysessionNo description available.
countrysessionNo description available.
gnt_eidsessionNo description available.
gnt_eu6 hoursNo description
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
systemsessionNo description available.
traffic_targetsessionNo description available.
Save & Accept
Powered by CookieYes Logo