Tesla appears to be leading the pack when it comes to US-made cars, Senator Joe Manchin has killed off his hope of getting a bonus tax credit for EVs made with domestic union work, and General Motors is hitting the pause button on the Hummer EV factory… but it’s a good thing. Plus: my cat is still missing. All this and more The Morning Shift for Wednesday, June 22, 2022.
1st Gear: Tesla leads the way in American Made
The Tesla Model Y and Model 3 were ranked 1st and 2nd on Cars.com’s American-Made Index. In fact, all four Tesla vehicles made the top 10. The Model X and Model S came in at 5 and 6, respectively. You can say a lot about Tesla, but at least this is good to see. From The Departmenteight news:
This marks the second year in a row that the Austin, Texas-based startup has won the title of most American.
Tesla’s regional approach to manufacturing helped it dominate the top of the index. The company claims 100% domestic production for all cars it sells in the US, above the industry average of approximately 52%, according to Cars.com. Tesla’s American lineup is assembled in factories in California and Texas, with major components sourced domestically and, in some cases, in-house.
The list also highlights that other US manufacturers must really act together. Ford only had one car (the Lincoln Corsair in 3rd place) in the top 10, as did Stellantis with the Jeep Cherokee in 7th place. The remaining four places in the top 10 list were taken by Honda.
The ranking was released because US consumers are increasingly interested in buying vehicles made in the United States, according to a recent survey by Cars.com, with around 40% of car buyers saying that buying a car made in the United States in the US is now more important to them. up 22% year on year.
The list is also a good reminder that what counts as “foreign” and “domestic” has been complicated for some time. Perhaps a better line of demarcation is union or non-union, by the way…
2nd gear: Joe Manchin is a real bucket of worms
Senate Democrats are giving up a $4,500 bonus tax credit for EVs made with domestic union workers because of, you guessed it, Joe Manchin. You may know him as the godforsaken one West Virginia idiot. From Automotive News:
“It’s over,” Manchin said in an interview at Capitol Hill on Tuesday.
The Build Back Better legislation passed last year in the House would increase the consumer tax credit from $7,500 to as much as $12,500, as part of a White House-backed effort to ensure electric vehicles are “made by workers with good jobs.” ”.
But the plan was criticized by Manchin, an evenly split Senate vote, as well as by non-union electric vehicle maker Tesla Inc. and foreign automakers like Toyota Motor Corp. and Honda Motor Co.
West Virginia is home to a large Toyota engine and transmission parts plant. Manchin has been a strong supporter of the operation, which was built in 1995 near Charleston, W.Va.
Recently, Manchin called the electric vehicle tax credit “ridiculous” and that he would prefer hydrogen-powered vehicles to be subsidized because he is an idiot.
The size and scope of the credit remains a point of debate in spending account negotiations, according to a person familiar with the matter. In recent weeks, Manchin has said he doesn’t like the existing EV tax credit structure because US companies have run out of credits or will soon run out of credits and foreign companies will continue to be subsidized.
“Any foreign vehicle that is electric will be able to claim a $7,500 credit” under the existing law, Manchin said. “I don’t think that’s our intention.”
God forbid that people who buy these cars have any kind of financial slack, you absolute loser.
3rd gear: Toyota is lowering expectations
Speaking of losers, the global semiconductor shortage is still increasing because of Covid supply chain disruptions. Now it’s causing Toyota – the world’s biggest automaker – to lower expectations for July, after previous cuts.
That is cutting its global production plan by 50,000 vehicles and now plans to make only 800,000 vehicles next month. from Reuters:
“As it remains difficult to look to the future due to semiconductor shortages and the spread of COVID-19, there is a possibility that the production plan will be lower,” the Japanese company said.
Toyota and other automakers continue to grapple with supply chain disruptions and component shortages caused by the COVID-19 pandemic, including those resulting from recent lockdowns in China.
Automakers are also having to compete for limited semiconductor supplies with other manufacturers, such as makers of consumer electronics devices.
Toyota has stuck to its annual global production target of 9.7 million vehicles, although the company signaled in May that supply chain disruptions could force it to reduce that number.
The automaker also said it is expanding production stops in Japan in the coming months that make vehicles such as the GR Yaris and bZ4X Ev SUV. I think you’ll have to get a Solterra instead. Shame.
4th gear: GM is building the Hummer EV factory
Before GM can build the Factory Zero truck factory, it must first let it idle for about a month. The plant employs around 800 people, and while only 99 Hummer EV pickups were delivered in the first quarter, there are more than 77,500 reservations for the pickup and SUV on the books. From automotive news:
GM has scheduled plant downtime to increase production capacity ahead of schedule, said GM spokesman Dan Flores. The automaker will install tools, machinery and equipment while workers are laid off from June 27 to July 22.
“These updates will also help prepare the factory for future products, including the Chevrolet Silverado EV,” Flores said in a statement.
GM plans to build the Silverado and GMC Sierra Denali electric pickup trucks and the Cruise Origin delivery and tour van at Factory Zero. Starting this fall, the plant will assemble Ultium battery cells into modules and packages for a variety of vehicle designs.
Some GMC Hummer EVs have been caught in trafficand let me tell you, Guys, he’s a big guy. A really huge guy. But hey, looks like size is the name of the game right now.
5th gear: Germany is not about living free from fossil fuels
Germany is not playing well with the European Union’s plans to ban the sale of new ICE cars by 2035. Reuters:
In its bid to reduce global warming emissions by 55% by 2030 from 1990 levels, the European Commission has proposed a 100% reduction in CO2 emissions from new cars by 2035. This means that it would be impossible to sell cars with combustion engine from then on.
European Parliament lawmakers backed the proposals this month, ahead of negotiations with EU countries on the final law.
German Finance Minister Christian Linder said on Tuesday that there would continue to be niches for combustion engines, so a ban would be wrong. Clearly this man appreciates Porsche’s 4-liter, 6-cylinder boxer engine. He added that the country would still be a leader in sales and adoption of electric vehicles.
So folks, it looks like there’s still some hope for a little ICE in the future. Internal combustion engines, of course, as all the real ice on the planet will have melted due to the extreme heat.
Reverse: 21 years of family
That’s right, everyone. Today marks 21 years since “Fast and furious” debuted on screen, and what a time it has been. Maybe one day I’ll be able to watch one of the movies… maybe.
Neutral: Have you seen my cat?
My kitten Janet disappeared last week in northern New Jersey. She is very sweet and very small. If you’re seeing less of my blogs it’s because I was looking for her. Keep Jan in her thoughts. She’s tough, but she’s not an outdoor cat. Also, please don’t give me any suggestions on how to get her back. I promise we’re trying everything.
If she doesn’t come home soon, I’m going to freak out and nobody wants that.