Aurelia Butler

The U.S. Treasury Department today announced new vehicle classifications that will allow more vehicles to qualify as SUVs and get the newly updated EV tax credits.The new rules consider the Cadillac Lyriq, the Ford Mustang Mach-E, the Tesla Model Y, and others to be SUVs and thus eligible under a higher $80,000 MSRP limit.The rules change is retroactive, so anyone who bought a vehicle since January 1, 2023, that now qualifies can claim the credit. More changes are coming to the complicated federal tax credit rules that involve EVs. The latest update notably allows more models to now classify as SUVs, raising their MSRP price limit from the $55,000 cap used for cars up to $80,000—pickup trucks and vans also fall into this category.It’s All in How They Look at ItThe U.S. Treasury Department today announced new standards for vehicle classifications, which are implemented as part of the Inflation Reduction Act (IRA). The IRA gave the decision of how to classify these vehicles to Secretary of the Treasury Janet Yellen, using criteria similar to those used by the Environmental Protection Agency (EPA) and the Department of Energy (DOE) to determine vehicle size and class .The Treasury Department had been classifying vehicles using the EPA’s CAFE standards, but it will now switch to a system based on the Fuel Economy Labeling standard. While the old rules will remain in effect until the proposed regulations are made official—we don’t know when that will be—the Treasury Department said if you purchased an EV in 2023 that previously didn’t qualify but now does, you can still claim the credit. Both Ford and Tesla recently announced price cuts for their vehicles that will now qualify even at higher prices.EV Price-Cut WarsThe IRA was signed into law in August, but it wasn’t until late December that the Internal Revenue Service defined some of the terms in the law, which finally clarified which EVs would qualify for the rebate with the start of the new year. As part of today’s announcement, the Treasury Department reminded everyone that it will further clarify its guidance on critical minerals and batteries in March. This Affects Both Automakers and BuyersFord, GM, and Tesla all supported changing the former rules. GM told Car and Driver in a statement that tax credits are “a proven accelerator of electric vehicle adoption” and said the Treasury “aligning” with the CAFE standards “will provide the needed clarity to consumers and dealers, as well as regulators and manufacturers.”At Ford, chief government affairs officer Chris Smith told C/D: “We recognize that the Treasury Department has a huge task in front of them in implementing the Inflation Reduction Act. We sincerely appreciate their consideration and hard work to make sure that more customers are able to access clean vehicle tax credits under the Act.”Understanding EV Tax CreditsFor EV buyers, the change means a few vehicles that were previously subject to a lower price limit qualify—or, at least, more expensive trim levels qualify—because now they’re considered SUVs instead of cars. For example, the Cadillac Lyriq, the Ford Mustang Mach-E, the Tesla Model Y, and the Volkswagen ID.4 are specifically affected. The Treasury Department said, “This change will allow crossover vehicles that share similar features to be treated consistently.”This content is imported from poll. You may be able to find the same content in another format, or you may be able to find more information, at their web site. More

Honda and Acura are issuing a stop drive warning for 8200 drivers of select 2001-2003 vehicles equipped with Takata airbags. Affected vehicles include the 2001-2002 Honda Accord and Civic models; 2002 CR-V, Odyssey, and Pilot models; 2002-2003 Acura 3.2 TL models; and 2003 Acura 3.2CL models.The airbag inflators were subject to recalls by Honda between 2008 and 2011 and were never replaced by the owners of the vehicles. Honda and Acura released a joint statement issuing a “Do Not Drive” warning to roughly 8200 owners of select models from between 2001 and 2003 still equipped with unrepaired Takata airbags. The airbag inflators were subject to recalls by Honda between 2008 and 2011 and were never replaced by the owners of the vehicles, leaving roughly 8200 affected vehicles. The list encompasses 2001–2002 Honda Accord and Civic models; 2002 CR-V, Odyssey, and Pilot models; 2002-2003 Acura 3.2 TL models; and 2003 Acura 3.2CL models. Owners are urged to avoid driving the affected vehicles until the necessary recall has been completed. The repair is free, and Honda will provide free towing and a free loaner vehicle if it is needed. More on Takata AirbagsTakata’s Alpha air bags are some of the oldest under recall, and they have a 50 percent failure rate, according to the National Highway Traffic Safety Administration. If the inflators rupture, the metal fragments ejected toward the driver’s face could kill or leave them with life-altering injuries. NHTSA is urging vehicle owners to immediately check to see if their vehicle has an open Takata air bag recall. If it does, owners should stop using the affected vehicle and contact their dealership or Acura/Honda customer service to schedule the free repair as soon as possible. More

Zeekr, a brand from Chinese giant Geely, has revealed the first images of its third model, a crossover called the X. The X will ride on a platform that underpins other electric cars from Geely’s portfolio, including the Smart #1, Lotus Eletre, and upcoming Polestar 5.Zeekr says the X will hit 62 mph in 4.0 seconds, and more details will be made available in the coming months. Zeekr has shown the first images of its third model, a small crossover called the X, breaking with the Chinese brand’s numerical naming scheme. Zeekr is an electric brand owned by Chinese automaker Geely, which also owns 82 percent of Volvo and 51 percent of Lotus. A recent report from Reuters claimed that Volvo is developing an electric van for Asian markets based on the boxy Zeekr 009, the company’s second model after the 001 wagon. ZeekrWhile Zeekr vehicles are currently only sold in China, the design for the X crossover was penned at the company’s facility in Gothenburg, Sweden, also the site of Volvo’s global headquarters. The styling certainly looks related to the brand’s first two products, but it still has a distinctive appearance. The two-part headlights echo the front end of the 001 (which itself borrowed cues from the Lynk & Co brand co-owned by Geely and Volvo), but the sharp, angular creases in the bodywork are a departure from the smooth 001 and slab-sided 009. Zeekr also touts the frameless doors and sideview mirrors, which improve the crossover’s aerodynamics.ZeekrThe Zeekr X measures 175.2 inches long, an inch longer than a Volvo XC40 Recharge, with a 108.3-inch wheelbase, 1.9 extra inches more than the Volvo. At 72.3 inches wide, it’s an inch narrower than the electric XC40, but it comes in 3.1 inches shorter at 61.9 inches tall. More from Geely BrandsZeekr has not shared details about the X’s powertrain, but the electric crossover is built on the Sustainable Experience Architecture platform that has been adapted to underpin a variety of vehicles including the 001, 009, Smart #1, Lotus Eletre, and the upcoming Polestar 5. Zeekr says the X will be able to hit 62 mph in 4.0 seconds. More details should come soon, with a full reveal expected in April. The Zeekr X is also supposed to herald the brand’s expansion into European markets following its Chinese launch later this year.This content is imported from poll. You may be able to find the same content in another format, or you may be able to find more information, at their web site. More

The so-called Inflation Reduction Act signed by President Joe Biden in August 2022 expanded purchase incentives for new electric vehicles, and added one for used EVs as well. That is one way to get people interested in buying EVs, of course. But it’s actually another part of that massive act that is likely to do far more for U.S. manufacturing and adoption of EVs even than purchase incentives.Called Section 45X, it funds 10 years of production credits for manufacturing battery cells, photovoltaic solar cells, and components for wind energy. And it has the potential to make EV batteries built in the U.S. so cheap that large swathes of Western cell and battery manufacturing will rush to locate in North America.Lies, Damn Lies, and Battery MarketingOne of the truisms in the electric-vehicle worry is that no one will talk in detail about battery costs. Adapted from a quote variously attributed to British Prime Minister Benjamin Disraeli and U.S. humorist Mark Twain, battery experts often say there are three kinds of lies: “lies, damn lies, and [battery] marketing.”For most of the past decade, $100 per kilowatt-hour (at the battery pack level, not the slightly lower cell cost) was thought to be the Holy Grail. In November 2021, battery cost for the industry overall was calculated at $132/kWh by Bloomberg New Energy Finance. Tesla is now thought to be at or below $100/kWh for the pack. Over the past year, though, cell prices—and hence pack prices—have risen due to soaring prices for lithium and other battery metals due to both higher demand and supply hiccups.In 2021, a U.S. Department of Energy official suggested $60/kWh as a reasonable goal at the cell level. That might mean $80/kWh at the pack level for vehicles in production in 2025 or beyond, including Teslas with the company’s 4680 cells (a different format), vastly more VW Group models, and GM’s dozen or more announced Ultium models. Car and Driver recently interviewed an experienced EV battery production specialist who asked not to be named. This person has worked for and consulted with numerous companies making cells in the U.S., Europe, and Asia, and remains deeply in touch today with the cutting edge of that industry.The bottom line of the conversation was that, as the specialist put it, “All the stories on the IRA are burying the lede”—an editing phrase meaning to focus on something other than the main story, and to mention the key fact only in passing lower down.Cutting up to Half the Cost of Batteries?Our expert pointed us to Section 45X, which in one fell swoop will cut one-third to one-half off the total cost of any EV battery with both cells and pack built in the U.S. To quote U.S. clean-tech investor Ion Yadigaroglu, interviewed by Bloomberg Green last week: Very simply, if you build a factory and run it in America, and it makes a battery, as the battery pack leaves the factory, you get $45 a kilowatt-hour. [The subsidy covers $35 per kilowatt-hour for battery cell production but adds another $10 for battery packs.] That’s more than a third of the cost of making [the battery] pack. And the way things are going, it could be the entire cost of making a battery pack within the 10-year span of the IRA.Our battery expert suggested this means all carmakers assembling vehicles in the U.S. will ultimately build their own battery factories, whether through joint ventures (like GM-LG) or designing and building their own cells (like Tesla’s efforts to bring its 4680 cells to market in large volumes). Designing and building cells directly reduces or eliminates profits to a third-party cell maker, but it’s far from a core competence today for most makers. Then again, how could they pass up this huge credit? A pack the size of the 131.0-kWh Ford Lightning’s amounts to $5895 for every one that rolls off the line. Do I Get an Incentive or Not?Meanwhile, the IRA bill’s purchase incentives—for which final rules are overdue—have garnered a lot of attention. They differentiate between passenger cars and light trucks, and for the first time, used EVs under a certain price can receive incentives as well.Any vehicle must be assembled in the U.S. even to be considered for qualification. Then, a rising percentage of its battery minerals must be sourced from a specific list of countries (which does not include China), and its battery cells must be assembled in North America. The IRS’s decisions on which vehicles are eligible, and what distinguishes a passenger vehicle from a light-duty truck like an SUV, have been messy, to say the least. Related StoryIt’s understandable that the prospect of $7500 off the price of a new car gets huge attention among shoppers, dealers, and carmakers. But on an average new-vehicle price of more than $47,000 (as of December), cutting the price of an EV battery pack substantially will likely have more impact.We can’t know how the battery-production incentives will play out in real life. The rules are still being finalized. We don’t know, for instance, whether existing cell plants (e.g. Tesla’s Gigafactory in Nevada, an LG Chem plant in Michigan) will qualify.More crucial to consumers, we can’t predict how the savings will be used by automakers. If most EV models built in the U.S. today break even at best, undoubtedly battery makers will want to increase their margins—making it easier to build new plants and boost volume. At the same time, car companies may use some of the reduction in battery cost to boost EV profits to the same level as those on gasoline vehicles.By now, the EV transition is not just ongoing, but accelerating. Carmakers will want every opportunity to make their EVs competitive in the market—and lowering prices is a classic way of doing just that. Still, while you may see a lot of analysis about possible effects, it’s too early to know how these battery-production incentives will affect consumer EV prices. If you take away one main point, it should be this: Sure, a $7500 consumer rebate on a qualifying new EV is nothing to sneeze at. But that’s not the most important EV-related part of the “IRA” by a long shot. Five to 10 years hence, carmakers have a huge opportunity to make much, much cheaper EVs. That’s the real goal. Shopping List More

This content is imported from youTube. You may be able to find the same content in another format, or you may be able to find more information, at their web site.It’s easy to imagine. There you are at a Barrett-Mecum-Sotheby’s auction wearing a new Hawaiian shirt and a watch the size of a housecat. The only things you’ve eaten all day are stale churros and six Minute Maid and Korbel mimosas. During the 1990s and early 2000s you were the biggest drywall contractor in Vegas, and then you sold just before the housing bust. You’re rich and you want to buy a car.That’s when you do something silly. Like paying way too much for a car that you once wanted while in high school. Or blowing a wad of cash on something you’re convinced has to go up in value, though you can’t articulate why. Or you just get caught up in a bidding war and find you’re now obligated to pay six figures for a Corvair. Auctions are where usually smart people can spend stupid money.Hearst Autos, the overlord of Car and Driver and Road & Track, also runs Bring a Trailer, the auction site that brings all the excitement of an auction to the iPad you’re holding in bed. And all that leads to this week’s challenge on America’s nowhere-near-favorite YouTube show, Window Shop.That challenge is to find the most outrageous car that someone overpaid for at auction. There’s no price limit this week, because insane has no upper limit.So, join the gang—Skip, Donna, Moondoggie, Crisco, and Cairo the vegan basset hound—for this episode of our ongoing, if not regularly occurring, series about shopping for cars on the Internet. It’s fun for up to 24 percent of the family.More Window Shopping More

Ford confirmed a 2023 return to the Formula 1 grid as a sponsor with Red Bull Racing.The American car giant will join forces with Red Bull Racing to help fund engine development for the team starting with the new regulations in 2026.Red Bull Ford, will provide the power units for both the Oracle Red Bull Racing and Scuderia AlphaTauri teams from 2026 to at least 2030.Ford confirmed Friday morning it will return to the Formula 1 circuit as popularity grows in the U.S. and around the world. The automaker will provide power units for both the Oracle Red Bull Racing and Scuderia AlphaTauri teams from 2026 to at least 2030. Ford will provide both teams with its expertise in battery cell and electric motor technology as well as power unit control software and analytics.The official partnership will begin in 2023. Ford and Red Bull Powertrains will work together to develop the power unit that will be part of the new technical regulations, including a 350kW electric motor and a new combustion engine able to accept fully sustainable fuels, ready for the 2026 season.Ford”This is the start of a thrilling new chapter in Ford’s motorsports story that began when my great-grandfather won a race that helped launch our company,” said Bill Ford, executive chair. “Ford is returning to the pinnacle of the sport, bringing Ford’s long tradition of innovation, sustainability and electrification to one of the world’s most visible stages.”The manufacturer has a rich history in the sport, and remains the third most succesful engine manufacturer. The automaker left the sport in an official capacity in 2004, when it sold the Jaguar Formula 1 team to Red Bull. “It’s fantastic to be welcoming Ford back into Formula 1 through this partnership,” said Christian Horner, Oracle Red Bull Racing Team Principal and CEO. This is a developing story. We will add details as they become available. More