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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.

What are the odds an actual Cadillac EV looks anything like this?

The Cadillac EV concept sure looks neat. It's all-electric, too, which is even neater. Unfortunately, it's a concept car, and when it comes to concept cars with Cadillac badges on them, it's best not to get too excited. For instance, you might recall this exquisite piece of automotive art. It was called the Elmiraj. You might recall the production version became the bold face of a new Cadillac and inspired a renaissance for the brand. Jay-Z drives one. Oh wait, no he doesn't. It was never made, nor was anything like it made. This is the Cadillac Escala. It has certainly inspired design cues on production Cadillacs, most notably the just-revealed XT6. However, besides those cues, it's a pretty anonymous large crossover. Hardly anything as stunning as the Escala. Now, perhaps the CT5 will be a dead-ringer, but we wouldn't get our hopes up. Then there's this, the Ciel. Not to be confused with an Acura CL, it was 100 feet long, a convertible and purple. This was also not made. OK, we can see why. And finally, this is the Cadillac Sixteen. As the name suggests, it had 16 cylinders. That's a lot. The most you can get in a Cadillac today is half that many. Now, to be fair, most manufacturers produce concept cars that have zero chance of production. They are meant to serve as inspiration for future designs, showcase future technologies or just draw attention to the brand. The problem with the Cadillac concepts is that they're not that fanciful. Those aren't pod-like Jetsons cars up there. They aren't this nonsense. They look like modern interpretations of the exact sort of grandiose cars Cadillac used to make. The very cars that made Cadillac the "Cadillac of the World." You know, like this. I'm not talking about literal tail fins and pink paint, but that's a CADILLAC. It's confident. It's its own thing. It doesn't need to beat BMW around the Nurburgring to prove something to someone somewhere. The Elmiraj was also a CADILLAC. The XT6 literally wears a Cadillac badge, but it could be anything. By contrast, Lincoln is doing a much better job of tapping into the spirit of its grand past with the Navigator, Aviator and suicide-doored Continental. Nowhere is that better seen than in the cabins of the XT6 and Aviator. One is swank. The other is not. But back to where we started: that EV concept. You'll note that it doesn't actually have a name.

Cadillac dealers frustrated over Escalade production snarls

Lincoln went through it during the launch of the MKZ last year, Jeep went through something similar with its Cherokee launch, and now the 2015 Cadillac Escalade has apparently caught the bug: dealer delivery delays because of quality control checks. Automotive News reports that Cadillac dealers have been waiting three times longer than usual - a month or more - from the time an Escalade leaves the assembly line to when it gets delivered. Worse, dealers are saying they don't always know where their vehicles are in transit, or when they are set to arrive. The situation has upset customers who have put down deposits and things have gotten so bad that some dealers have reportedly stopped taking pre-orders.
Cadillac says it has the delay, called "dwell time," down to two weeks, and it expects to cut that to a week by the beginning of September. The company said "a lengthy quality-assurance process on some interior parts" has caused the lag, the report citing additional issues with figuring out which vehicles should be delivered first. A spokesman said that more trucks have been put in the distribution system to work through the backlog, but it's clear it's still going to take some time to set things right, with one dealer telling AN that cars ordered in February and March still haven't arrived.
Brand chief Kurt McNeil said additional personnel are at the Escalade's Arlington, Texas factory to speed up the checks, and spreadsheets tracking every order have been distributed to field staff. Even with the snafu, though, the Escalade is Cadillac's best seller through July.