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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.

Volkswagen preparing Tiguan Coupe R

Volkswagen has might proliferation plans for the SUV side of the VW brand, Autocar listing a range that will comprise seven models and variants on sale by 2018. The next-generation Tiguan will play a large part in tripling VW's crossover lineup, a development discussed a year ago, with a standard model, the three-row long-wheelbase version to be built in Mexico, and a five-door "Coupe" variant that will get an R version worked up by the in-house R team. The Tiguan Coupe R is aimed at the performance end of the compact crossover field, giddyup coming from a 2.0-liter four-cylinder with something like 300 horsepower and 280 pound-feet of torque that works through a six-speed dual-clutch transmission. Underpinnings are expected to be cribbed from the Golf R; a hotter suspension tune with a lower ride height and four-mode damping. The sprint to 62 miles per hour would clock in around 5.1 seconds, and handling nous would be aided by all-wheel drive and electronic torque vectoring. It will need all of that in order to catch up to the competitive set listed by Autocar of the 375-hp Mercedes-AMG GLA45, 309-hp Audi RS Q3, and potential Range Rover Evoque SVR and BMW X2 M. The CrossBlue Coupe seen in Shanghai earlier this year will provide the styling cues, we're told, with rakish glass front and back, and thick C-pillars supporting a leaner greenhouse. We'll likely see the basic Tiguan at next month's Frankfurt Motor Show, then will come the long-wheelbase in 2016, the regular Coupe in 2017 along with the Touareg and US-built CrossBlue, then in 2018 the Tiguan Coupe R, CrossBlue Coupe, and Nissan Juke-fighting T-Roc. Related Video:

VW recalling 2.64M vehicles worldwide over engine, light issues

Volkswagen is staging a massive, worldwide recall that's already grown from 1.68 million to 2.64 million vehicles and covers three different issues across a number of vehicles. We already reported on 61,000 Tiguans getting recalled over lighting issues - that was just in the US. Globally, however, VW will be recalling 800,000 Tiguans, according to Automotive News, with the focus on CUVs built between 2008 and 2011. The issue with the Tiguan relates to a simple fuse swap, so this is rather unremarkable, aside from the sheer number of vehicles being fixed. The real, troubling issues relate to gearboxes and pickups.
239,000 Amarok pickups (pictured right) are being recalled over fuel leaks, while 1.6 million vehicles are being recalled to swap the synthetic oil in dual-clutch transmissions with mineral oil. Now, the transmission issue is one for the global Volkswagen Group to address, not just the VW brand - vehicles from Audi, Škoda and Seat use the same seven-speed DSG and are covered under the recall, as well.
Why the switch from synthetic to mineral oil? Apparently, using the synthetic oil in a DSG and then subjecting it to stop-and-go conditions or heavy loads in a hot and humid climate can lead to electronic malfunctions, according to a Volkswagen press release. The switch, from the sounds of it, is largely a preventative measure.