Skip to main content

White House Wants to End EV Subsidies ASAP

White House economic adviser Larry Kudlow announced Monday that the Trump administration is seeking an end to federal subsidies on electric cars. Interestingly, the move appears to be related to General Motors’ plant closings and layoffs. The company’s restructuring plan hasn’t gone over well with policymakers or the American public, with many accusing the automaker of abusing years of tax breaks, only to reduce its workforce as a way of pursuing new technologies, businesses, and further bolstering its profit margins.

However, cutting GM out of the electric vehicle subsidies deal is more likely to impact its rivals than anything else. The company said it’s on the cusp of the EV tax credit ceiling already, with the gradual phase-out of those incentives likely to take place through 2019. Yet Kudlow pointed to the elimination of the credits as one way of punishing GM for eliminating so many jobs, echoing President Donald Trump’s threats from last week.

“As a matter of our policy, we want to end all of those subsidies,” Kudlow explained. “And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it’s for renewables and so forth.” 

When asked for a target date, the economic adviser gave his best guess, saying “It’s just all going to end in the near future. I don’t know whether it will end in 2020 or 2021.”

According to Reuters, Tesla and GM lobbied Congress for months to lift the cap on electric vehicles or make other changes that would make it easier to move EVs, including new incentives. That’s unlikely to happen until Democrats move in, at which point Congress will be far less inclined to support the Trump administration’s plan to abolish the EV tax credits entirely.

From Reuters:

In October, Senator Dean Heller proposed lifting the current cap on electric vehicles eligible for tax credits but phase out the credit for the entire industry in 2022. Two other senators in September proposed lifting the per manufacturer credit and extending the benefit for 10 years.

Also in October, Senator John Barrasso a Republican who chairs the Senate Environment and Public Works Committee, proposed legislation to end the EV tax credit entirely.

Analysts previously suggested that incentivizing electric vehicles to such a great extent may end up creating artificial demand. While that’s likely the point, some are concerned with what might happen when those credits are suddenly stripped away. Automakers are investing vast sums of their own money into developing these vehicles; it would be a huge blow to the industry if the rug was pulled out from under them. However, you could also make the argument that the credits already placed the auto sector on unstable ground.

While Kudlow still seemed mostly steamed with General Motors, he is also aware of the broader impact EV incentives have on the industry. He made clear any changes in subsidies would not just affect GM, knowing the government couldn’t simply target one automaker. “I think legally you just can’t,” he said.

a version of this report first appeared on ttac.com

The post White House Wants to End EV Subsidies ASAP appeared first on VWVortex.



from VWVortex https://ift.tt/2RBBl4D
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Watch: The Stig Drives (nearly) Seven Generations of Golf GTI

With Volkswagen announcing “major” updates to the Golf, it seems an appropriate time to look back on what we’ve had so far. And who better to guide us through the rich history of the most popular European car ever made than Ben Collins, the former Stig? Some say he’s never met a GTI he doesn’t love, and that he can’t grow any of his own facial hair. All we know is … Ben Collins is actually a pretty solid presenter. Working his way through seven generations of the GTI (skipping over the Mk6) Collins tells us a little bit about each one and matches each mark to its corresponding facial hair craze. The Mk1 GTI for instance, is light and quick, but can lose traction under hard acceleration (in heavy rain). Despite that, Collins calls the Mk1 a “pure gem.” The Mk4, meanwhile, is a powerful return to form after the perhaps too sensible Mk3. Collins ends in the only way he could, with the Mk7, which accelerates faster than a Lamborghini Countach and is all kinds of wonderful. Watch, ...
Post a Comment
Read more

Watch: The Story of the Ads that Made VW Big in America

The ads for the original Beetle are almost as famous and well-loved as the Beetle itself. Looking back now it’s easy to forget, though, just how easily things could have wrong. A new short from Dial M Films tracks the history of those early Volkswagen ads that sold America on the people’s car. The story, of course, begins with the visionary agency that made the ads: Doyle Dane Bernach (DDB). As a popular agency for Jewish products, no agency was more aware of the implications of Volkswagen, and no one, it seems, was more skeptical of the brand than DDB. “Remember Those Great Volkswagen Ads?” from Dial M Films on Vimeo . William Bernbach, though, was adament that the firm take the client, probably as a way of attracting other lucrative automotive clients. Saddled with a client that he didn’t want, art director Helmut Krone says in the film that he originally came up with ads that were all wrong. Krone tried to do what other manufacturers did and was intent on selling the Beetle ...
Post a Comment
Read more

Watch: The Zerouno Cruis’n USA

ItalDesign is drumming up excitement for its new supercar based around the same 5.2-liter Audi V10 that powers the R8. Naturally, it hit the road for a cruise around California last week to celebrate Monterey Car Week. There isn’t much in the way of V10 noise—which is a real shame given the sound it makes—but you do at least get a good look at the car inside and out in this video. With a body made entirely of carbon fiber and designed to be as aerodynamic and light as possible, ItalDesign figures that it will be good for a 0-60 time of just 3.2 seconds. “We put it our best skills into the production of the first car,” said Massimo Bovi, head of pre-series production, when the Zerouno was first unveiled in Geneva earlier this year. “Using some of the finest productions methods and engaging our high-skilled workers.” The car features clever aero tricks gleaned from single-seat racing, like a y-duct up front to improve downforce and turn-in. Available in a number of trim levels, the...
Post a Comment
Read more