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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

China is the country with the largest new-car market and the highest automobile production. You’d think we’d know Chinese automotive brands as well as we know Detroit’s, but since the models aren’t exported to the U.S. (yet), readers may find their names unfamiliar. Of the nine largest Chinese multibrand automakers, together fielding almost 50 nameplates, only four have mapped out a global strategy so far. And of those four, arguably only Geely, BYD, and Nio are, at this point, sufficiently advanced to take on American, Korean, and European brands. Hot on the heels of those industry giants are several fast-rising second-tier competitors. Overall, these five companies are best poised to capitalize on the shift to EVs.HiPhi XHuman HorizonsHuman Horizons: Focused on Luxury FeaturesHuman Horizons, which is privately owned by the former general manager of Shanghai General Motors, has inked an assembly agreement with the well-established Dongfeng Yueda Kia and is boldly moving into high-dollar luxury territory. Sold online under the brand name HiPhi are the full-size X SUV and the Z sedan. The latter boasts a claimed 3.8-second sprint to 62 mph and an extra-large battery pack good for an estimated 330-mile range. Customers seem impressed by head-turning features such as power-operated rear suicide doors and gullwing roof panels, customizable lighting orchestrations, a TV-size screen for the front passenger, and a center monitor that can change position from upright to landscape. Human Horizons may be a two-hit wonder or the beginning of a unique success story. Yangwang U9BYDBYD: Aimed Right at Tesla and MercedesBuild Your Dreams already sells cars in Europe to customers with an affinity for startups, a strong liking for Google software, and deep pockets. Its Atto 3 (five-seat crossover), Han (compact sedan), and Tang (seven-seat SUV) EV triplets are expensive. In China, though, BYD is known as a maker of affordable transportation appliances. BYD’s Ocean series looks more promising, even if the car names sound like a vision board from the latest Avatar movie. The Seagull, Dolphin, and Seal use a new platform featuring an 800-volt architecture and a battery with bladelike cells. The Seal challenges the Tesla Model 3, and the fetching Frigate 07 plug-in-hybrid SUV takes on the Model Y. We also picked BYD as a front-runner for its upcoming Yangwang premium subbrand, set to rival BMW and Mercedes. Chinese for “looking up,” Yangwang kicks off with a quad-motor SUV dubbed U8, a six-figure off-roader aimed squarely at the G-wagen and the Land Rover Defender. It also just debuted an electric supercar, the U9, with a claimed 2.0-second time to 62 mph. Nio ET5NioNio: Building Better Battery ChargingThe automotive startup Nio is centered on the idea of quick battery swapping, although its cars also can be recharged conventionally. Nio founder Bin Li convinced potent investors including Autohome, Lenovo, and Tencent to back his alternative energy-feeding system on a global scale. In China, Nio is perceived as matching or beating the German opposition in terms of customer focus, with seamless app integration and remote services. In addition to 180- and 500-kW fast-chargers, a fleet of 24/7 charging vans services remote areas. There’s even a bespoke smartphone that is reportedly coming tailor-made for Nio users. As for the vehicles, the second-generation NT2.0 architecture underpins the attractive ET5 sedan and the roomy ES7 SUV, which has an estimated range of up to 400 miles. Next year Nio plans to launch the Alps brand, aimed at Volkswagen and Toyota, with a string of fresh products covering the sub-$40,000 bracket. By 2025, we should see Himalaya, a budget nameplate set to compete in the $20,000 range. XPeng G9XPeng MotorsXPeng: A Tech-Heavy Dark HorseA small player by Chinese standards, XPeng Motors keys in on value. Trading on the New York Stock Exchange and based in Guangzhou, XPeng offers four attractively styled and priced models: the G3i, the P7, the P5, and the flagship G9. The G9 boasts automated parking, over-the-air updates, hands-free driving where legal, and a voice assistant capable of communicating individually with all four passengers. XPeng touts the SUV’s 400-kW fast-charging capability, and even the top all-wheel-drive 543-hp model is bud-get minded. Fitted with 28 speakers, six vibration units in the seats, second-row amphitheater seating, and a massive 2250-watt amplifier, the crossover is a concert hall on wheels. The G9 definitely has the makings of a successful underdog. Zeekr 009GeelyMore Chinese CarsGeely: The Main CharacterThe automotive world eyes Geely with an uneasy mix of respect and fear. The conglomerate not only owns Volvo, Polestar, Lotus, Lynk & Co, and half of Smart and Proton, but it also has lesser-known brands ranging from entry-level to luxury to specialty use, including LEVC (formerly London Taxi), Geometry, and Zeekr. There’s also Radar, a new maker of affordable electric pickups and SUVs, and Jidu, a joint venture with the search-engine giant Baidu. The cars that Geely’s domestic nameplates produce may be bland, but anything based on the new Sustainable Experience Architecture matrix should be taken seriously. Case in point is the impressive Zeekr 001 crossover and the brand’s boxy, in-your-face 009 MPV, which will be followed this year by an upper-class sedan. The reasonably priced all-wheel-drive 001 boasts 536 horsepower, an 86.0-kWh battery, and a range of roughly 260 miles. Looking deeper into the crystal ball, we see an autonomous ride-hailing van co- developed with Waymo and a self-driving car conceived with Mobileye, both due in 2024. EXPATSMany of America’s oldest and most established car brands are popular in China—but not necessarily the ones you’d expect. Buick is huge, and Lincoln sold more cars in China than in the U.S. in 2021. Here are the most interesting China-market exclusives from U.S. automakers. —Joey CapparellaBuick GL8 CenturyBuickBUICK GL8 CENTURY Vans are big business in China, especially high-end models meant for chauffeuring the well-to-do. Buick has had a stranglehold on the market with its GL8, and the latest iteration adopts the Century name. Niceties include heated footrests, a fridge, and a 32-inch entertainment screen for rear passengers. Chevrolet MenloGeneral MotorsBUICK VELITE 6/CHEVROLET MENLO These wagonoid twins have flown the EV flag for GM’s Chinese joint venture, and the Buick also comes as a plug-in hybrid. More electric models are in the pipeline.Lincoln ZephyrFordLINCOLN ZEPHYRIf the Lincoln MKZ looked like this, maybe it would’ve been more successful in the U.S. While the new Zephyr is based on the mainstream Ford Mondeo, elegant detailing disguises its family-sedan roots.Ford EvosFordFORD EVOSLooking like a more attractive take on the Honda Crosstour, this low-slung segment buster shares a platform with the Escape. Power comes from a turbocharged 2.0-liter four, and inside, a massive screen stretches nearly the width of the dash. More

The British car manufacturer Lotus is already owned by Geely, and now the company has announced it will merge with L Catterton Asia Acquisition Corp., which is a SPAC or special acquisition company.The combined company is expected to keep the name of Lotus Technology Inc., with an estimated combined enterprise value of approximately $5.4 billion.Geely and other current Lotus owners are expected to retain their interests in the merged entity and hold a combined 89.7 percent. Ordinary shares for Lotus are expected to be listed on the NASDAQ under the ticker symbol “LOT” after the IPO. Lotus is going public, yet on the surface little will change: Parent company Geely and its co-owners are expected to retain an 89.7 percent majority share of the company. Ordinary shares for Lotus are expected to be listed on the NASDAQ exchange under the ticker symbol “LOT” after the IPO. Interestingly, the new acquisition company, or SPAC, that’s buying in to Lotus is associated with Bernard Arnault and his France-based luxury goods giant LVMH, which owns companies that make everything from champagne to haute couture clothing.More on LotusNew Feel, Same NameAfter the deal goes through with the special-purpose acquisition company (SPAC), L Catterton Asia Acquisition Corp., Lotus is expected to retain its name “Lotus Technology Inc.” with a new enterprise evaluation of roughly $5.4 billion. That evaluation takes into account an estimated $288 million in cash from Catterton’s trust account (assuming none of that firm’s public shareholders elect to redeem their shares), according to a release from Lotus.Eletre SUV Plans Look to Be on TrackGeely CEO Qingfeng Feng will continue to helm the ship, and production plans do not seem to have changed. When we asked Lotus about how the merger will affect short- and long-term production plans, we were directed to the official release here. As things stand, the Eletre SUV is still expected to begin delivery in China in the first quarter of this year, and in the U.K. and Europe later in the year. It seems the U.S. and the rest of the world will need to sit patient, with Lotus still planning global delivery in 2024. The push to go public is part of a larger narrative between Lotus and Geely trying to improve the company’s reach on a global scale. To that end, prospects seem high for the British outfit as it heads public. Managing director Matt Windle told us in December that Lotus received more than 10,000 orders for its new Emira, with over a third of those sales coming stateside. On top of that, in the span between Goodwood 2021, when the Emira launched, and Goodwood 2022, Lotus sold more cars than it had in the previous six years combined. A Colorful History of OwnershipLotus has changed hands a few times since Colin Chapman founded it in 1952. Following Chapman’s death, the company teetered on the edge of bankruptcy before being purchased by General Motors and Toyota. The company was eventually sold to the Italian businessman Romano Artioli who also owned Bugatti at the time.In 2017, Zhejiang Geely Holding Group (more commonly known as Geely) purchased a 51 percent stake in Lotus. In the years since, Geely has poured hundreds of millions of dollars into bringing Lotus into the modern era of car manufacturing.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

McLaren is expected to replace the retired 720S with a new model called the 750S, as first reported by Automotive News. The report claims the 750S will gain 30 hp and be a “little more aggressive” than the outgoing 720S.Along with new design details inside and out, the 2024 McLaren 750S is slated to go on sale later this year starting at roughly $340K.When McLaren officially said goodbye to the 720S at the end of last year, we knew a successor was on the way, but we didn’t know anything about it. That changes with today’s news that McLaren is expected to call the 720’s replacement the 750S, per a scoop by Automotive News.Mightier V-8 and Sharper HandlingCiting an anonymous source with inside information, the AN report claims the 750S will share the same platform and powertrain with its predecessor, but the new model will have myriad enhancements. For example, the twin-turbo 4.0-liter V-8 will carry over to the 750S, but the engine is said to have revisions that add 30 horsepower, increasing output from 710 to 740 hp.720S at VIR.Car and Driver765LT at VIR.Car and DriverThe 720S was already a wonderful track car—as we experienced first-hand at our 2018 Lightning Lap event. Still, it wasn’t nearly as intense in that regard as the McLaren 765LT we lapped. The 750S is expected to fall somewhere between those two on the performance spectrum, suggesting it’ll have sharper handling than the 720S but won’t be as brutish as the 765LT.New Looks Outside and InWe don’t yet know what the 750S’s exterior will look like, but the AN story paints a picture of a machine that’ll draw from newer McLaren models as well as still resemble the car it’s replacing. There’s talk of a revised front bumper, bigger side air intakes, and a larger active rear wing à la the 765LT. Of course, new paint options and different wheel designs will surely be part of the package.Inside, the 750S will likely take inspiration from the new plug-in-hybrid McLaren Artura and even the wild windshield-less Elva. The 750S is said to have a similar steering-column-mounted gauge cluster as those two, and switchgear for selectable drive modes and such will now be found on the cluster’s bezel.Coupe and Spider Coming This Fall Even before we knew the name of the 720S’s replacement, Nicolas Brown, McLaren’s president of the Americas region, earlier this year told AN the new car was already sold out “through deep 2024.” Today’s news also suggests what most of us could figure out on our own: The 750S will be super expensive, with AN’s source saying it’ll likely cost 10 percent more than its predecessor. The 2023 720S coupe started at $310,500, so it’s safe to say the 750S coupe will cost at least $340K.Unlike with previous McLaren launches, the upcoming 750S is said to debut with both coupe and spider (read: convertible) body styles. An official reveal is said to be coming later this month, with production supposedly slated to start this September. A McLaren spokesperson has yet to respond to our request to confirm the new model will, in fact, be called the 750S.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

Volvo is working on six new EVs that will be revealed in the next four years, according to a report from Reuters.Along with electric replacements for the brand’s SUVs and sedans, Volvo is allegedly designing an electric minivan based on the Zeekr 009 (shown above), leveraging its status as part of the Geely Group.The Volvo minivan will reportedly feature a more “emotional” design, but it likely won’t be sold in the U.S., instead meant for Asian markets where luxury vans are a popular choice.Volvo unveiled its first purpose-built EV, a three-row SUV called the EX90, late last year. Essentially the electric equivalent of the XC90 that has been a mainstay in the company’s lineup since 2002, the EX90 is the first step toward Volvo’s goal of having an entirely electric portfolio by 2030. Now more details on the Swedish automaker’s transition to EVs are emerging, with Reuters reporting that Volvo will launch at least six new EVs by the end of 2026, covering each of the key segments.The 2024 Volvo EX90.VolvoThe EX90 will be followed up with electric replacements for the XC60 and XC40 crossovers, as well as the S60 and S90 sedans. During the EX90 reveal, Volvo also teased an EX30, due to be revealed on June 15 and slotting in slightly smaller than the XC40 Recharge, although its not clear if this model will be sold in the U.S. The future of Volvo’s iconic wagons is less certain—in February 2022, a report hinted that two wagon-like “activity vehicles” were on the cards, but it’s still unclear exactly what shape these models will take.More on VolvoThe two sources cited by Reuters claim that Volvo’s EV offensive will also include a luxury minivan focused on Asian markets. This model, taking advantage of the fact that Volvo is 82 percent owned by Chinese giant Geely, would be closely related to the Zeekr 009. Revealed last fall, the 009 sports a brutalist design and offers a colossal 140.0-kWh battery pack promising 500 miles of range and a dual-motor powertrain with 536 horsepower. The 009’s luxurious cabin has three rows of seating, with prices starting at the equivalent of $74,000 in China. The van, along with the upcoming electric sedans, is being developed at Volvo’s Shanghai R&D center, which Reuters reports has grown to include a 60-person design staff and migrated to a larger facility. The van will also move further away from the brand’s traditionally staid, serious designs and will hew more closely to the Zeekr’s dramatic styling, which is a key facet of many of the luxury vans that are popular in Asia, such as the Toyota Alphard. The Zeekr 009’s design and capable powertrain make us excited to see what Volvo is working on, and we hope that Volvo will consider bringing it stateside as an alternative to America’s obsession with massive SUVs.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 2023 BMW XM Label Red is now registered for an exhibition run at this year’s Pikes Peak International Hill Climb.Matt Mullins, chief driving instructor at BMW’s Performance Driving School, is set to drive the mighty XM.Starting at $185,995, the XM Label Red is a 735-hp plug-in-hybrid SUV that’s slated to go on sale later this year. The 2023 Pikes Peak International Hill Climb is still several months away, but that doesn’t mean we can’t get a little excited about it. The 101st running of the event will take place on June 25, and the organizers have released a preliminary list of 74 entries. While the final roster of competitors won’t be finalized until closer to the event, one entry in particular caught our eye among the already exciting list: The 735-hp BMW XM Label Red.BMWTwitterThat’s right. BMW has made preliminary plans for the mightiest version of its upcoming plug-in-hybrid SUV to perform an exhibition run this year at Pikes Peak. Matt Mullins will drive the Label Red, marking his first Pikes Peak. Mullins currently serves as the chief driving instructor for the BMW Performance Driving School. He’s set to wear number 735, likely a nod to the Label Red’s power figures. Unfortunately, it looks like the XM won’t be partaking in a gung-ho time-attack—that’d surely be exciting to see. A PHEV for Pikes PeakNormally, a plug-in-hybrid SUV isn’t the first thing that comes to mind when thinking of exciting hill-climb vehicles. However, the XM is a more performance-minded machine than its body style and powertrain might suggest. The standard XM produces 644 horsepower and 590 pound-feet of torque. Those figures certainly befit an M-badged BMW, and that’s not even the mightiest version. That title goes to the limited-edition Label Red, which has 735 horsepower and 735 pound-feet of torque. That will make it the most powerful BMW when it goes into production.When the regular 2023 XM goes on sale this spring, and the Label Red follows later this year, the former will start at $159,995 and the latter will start at $185,995.More on the BMW XM SUVA Preliminary EntryThe few images BMW has already released of the XM have received a polarizing reception. Our staff here at Car and Driver is also split on the looks, though the majority seems to agree it’s not a pretty thing. On the Label Red, the regular model’s gold trim is replaced with red trim. The result sort of resembles a lipstick-on-a-pig situation. When we asked about the decision to bring the XM Label Red to Pikes Peak, a BMW spokesperson confirmed that the company submitted a preliminary entry in anticipation of the approaching registration deadline. However, we were also told it has not yet made a final decision on whether or not the XM will participate. 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