1981 Cadillac Eldorado on 2040-cars

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VW, Rivian, Nissan, BMW, Genesis, Audi and Volvo lose EV tax credits starting tomorrow

The U.S. Treasury said Monday that Volkswagen, BMW, Nissan, Rivian, Hyundai and Volvo electric vehicles will lose access to a $7,500 tax credit under new battery sourcing rules. The Treasury said the new requirements effective Tuesday will also cut by half credits for the Tesla Model 3 Standard Range Rear Wheel Drive to $3,750 but other Tesla models will retain the full $7,500 credit. Vehicles losing credits Tuesday are the BMW 330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf , Rivian R1S and R1T, Volkswagen ID.4 as well as the plug-in hybrid electric Audi Q5 TFSI e Quattro and plug-in hybrid (PHEV) electric Volvo S60. The Swedish carmaker is 82%-owned by China’s Zhejiang Geely Holding Group. The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs. Hyundai said in a statement it was committed to its long-range EV plans and that it "will utilize key provisions in the Inflation Reduction Act to accelerate the transition to electrification." Rivian declined to comment and the other automakers could not immediately be reached for comment. Treasury also disclosed General Motors electric Chevrolet Bolt and Bolt EUV will qualify for the full $7,500 tax credit. GM said earlier it expected at least some of its EVS would qualify for the $7,500 tax credit under the new rules, including the 2023 Cadillac Lyriq and forthcoming Chevrolet Equinox EV SUV and Blazer EV SUV. Treasury said all GM EVs will qualify. Earlier, Ford Motor and Chrysler-parent Stellantis said most of their electric and PHEV models would see tax credits halved to $3,750 on April 18. Treasury confirmed the automakers' calculations. The rules were announced last month and mandated by Congress in August as part of the $430 billion Inflation Reduction Act (IRA). The IRA requires 50% of the value of battery components be produced or assembled in North America to qualify for $3,750, and 40% of the value of critical minerals sourced from the United States or a free trade partner for a $3,750 credit. The law required vehicles to be assembled in North America to qualify for any tax credits, which in August eliminated nearly 70% of eligible models and on Jan. 1 new price caps and limits on buyers income took effect.

Cadillac's Johan de Nysschen clarifies a few points on the brand's future

Last week, Motor Trend ran coverage on a journo roundtable with Cadillac president Johan de Nysschen. During the roundtable, de Nysschen cited a few reasons for the decline in sedan sales, including gas prices, "young consumers" — read, millennials — less interested in driving dynamics than lifestyle accessories, and the state of U.S. infrastructure. Jalopnik homed in on the last two reasons, and those became the story, including here in our post on the roundtable. So de Nysschen called Jalopnik to add more context. The original reaction pieces painted de Nysschen's rationales as an excuse for sporty sedans not selling well, when the issue is Cadillac's sporty sedans not selling well. His main clarification: "I wasn't advocating the idea that the world is black and white, that if you're a young buyer a millennial or a teenager that you don't enjoy driving." On that note, it would be ridiculous to deny millennial and sedan-segment bugbears; de Nysschen has market research and the industry-wide, rabbit-like crossover breeding program to back him up. Yet even as he touted the success of the XT5, noting that it's "the third-best-selling luxury nameplate in the U.S. after the Lexus RX, and the Mercedes C-Class," he could add, "But the irony is not lost on me that the C-Class is a sedan." The circumstances laid out in the follow-up piece inject more likely color into the situation: the brand's onetime, singleminded focus on the U.S., followed by a singleminded focus on China that left the U.S. market wanting for attention. We could add to that: years of lackluster products and awful attempts at volume and brand engineering under the old GM at the same time that downsized premium luxury products, crossovers, and SUVs began their rocketship trajectories; trying to live off the Escalade success; and the carmaker's desire not to offend its older, traditional buyers while concurrently wooing "coastal influencers." De Nysschen also acknowledged that Cadillac interiors aren't where they need to be, saying, "We recognize that's where we want to improve." The result, as de Nysschen put it, "We're playing with the hand that we've been dealt.

2014 Cadillac CTS debuts new design, twin-turbo power, Vsport model [w/video]

If ever there were a Cadillac to truly rival the world's best, this could be it.
With every new model, Cadillac indeed gets closer and closer to actually performing at the top of its class, rivaling those crafty Germans at their own sport/luxury sedan game. The best example yet of Cadillac's efforts to challenge the world came last year, when we met the 2013 ATS - a vehicle that we praised for its on-road dynamics and interior refinement, and later went on to be named North American Car of the Year.