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Michigan ponders its automotive future in the connected age

Few people take cars more seriously than Michiganders. I've been to the home of BMW in Germany. I've been to Kia's HQ in Korea. I've seen Honda's goods in Japan. No one, from the factory worker to the executive in her pinstriped suit, is more obsessed with cars than Michigan Inc. That's why it was interesting this week to see the state have a moment of introspection four hours north of the Motor City on a scenic island called Mackinac. Ironically, cars are not allowed here. Normally a tourist trap, it played placed host to the Mackinac Public Policy conference this week. While politics took center stage ( I may be the only person here not considering a run for governor) the evolution of the industry through connectivity and data was a theme of the conference. If you're reading this in New York, Silicon Valley, or one of the automotive heartlands listed above, you do care about this. If Michigan rethinks its approach to the car business – and makes moves to become more competitive – that affects you the consumer and enthusiast. It's jobs. It's technology, and it's a competition to see who's going to be the leader. More than a century after Henry Ford made mass production a thing, more than 70 years after Detroit's Arsenal of Democracy helped win World War II, and nearly a decade after the historic bankruptcies of General Motors and Chrysler, the car business is on solid footing again and looking to the future. What's next? Michigan is still home to thousands of auto workers, tech centers (including gleaming facilities built by Toyota and Hyundai), and the headquarters of the three American carmakers. Just because the economy is good doesn't mean it's a given connected cars and mobility advancements are going to come from this state. A lot of it's not. Tesla, Uber, Lyft, Faraday Future, and other transportation mediums have spouted up other places. Michigan leaders and Detroit's carmakers understand this reality. Reflecting on the past means admitting the future is not a given, a key undertone this week in Mackinac. It's about using existing resources, like skilled labor, to move forward. "We do have the number of technicians and technical expertise here in this state," says Stephen Polk," conference chair and former CEO of auto data firm R.L. Polk & Co. To that end, Ford is placing increased emphasis on a division called Smart Mobility, which is an in-house unit focusing on autonomy, connectivity, and forward-looking ideas.

Ford investing $2.5 billion in two new plants in Mexico

Automobile production keeps ramping up in Mexico. Last week alone, Toyota announced a new plant it's building south of the border, and news broke that Hyundai is looking into the same. Now Ford has announced a multi-billion-dollar initiative that will see it building two new facilities in Mexico, as well. Though neither will be a final assembly plant, both promise to break new ground for the automotive industry in Mexico – at least as far as Ford is concerned. The first is a new engine facility to be built at Ford's existing plant in Chihuahua. The fruit of a $1.1-billion investment will see the Blue Oval produce new gasoline engines for use in North America, South America and Asia-Pacific, creating 1,300 new jobs in the process. Ford will also be investing another $200 million to expand its inline-four and diesel engine production lines at the same plant. The move will create another 500 new jobs and make Ford's Chihuahua engine plant the largest in Mexico, according to the company's press release. Ford has also announced the building of its first transmission facility in Mexico, to be constructed within Getrag's plant in Irapuato in the state of Guanajuato. The $1.2-billion investment will create 2,000 new jobs and be charged with exporting two new automatic transmissions to markets around the world. The announcement comes on the 90th anniversary of Ford's presence in Mexico, dating back to 1925. Currently the company produces the Fiesta, Fusion and Lincoln MKZ in Mexico, as well as numerous Duratec and diesel engines. Related Video: FORD ANNOUNCES $2.5 BILLION USD INVESTMENT FOR NEW ENGINE, TRANSMISSION PLANTS IN MEXICO - Ford is investing $2.5 billion USD in new engine and transmission plants in the Mexican states of Chihuahua and Guanajuato, respectively - Approximately 3,800 direct jobs will be generated through three projects – a new engine plant in Chihuahua, expansion of Ford's I-4 and diesel engine lines in Chihuahua and a new transmission plant – Ford's first in Mexico – in Guanajuato - The investment is part of the company's One Ford plan, which emphasizes global competitiveness. The news comes as Ford celebrates its 90thyear in Mexico Further building its lineup of increasingly fuel-efficient engines and transmissions, Ford today announced a $2.5 billion investment in two new facilities building a new generation of engines and transmissions in the states of Chihuahua and Guanjuato, respectively.

EV tax credits: Here's every electric car or plug-in hybrid that qualifies

Starting on April 18, the Internal Revenue Service released new guidance for U.S. buyers shopping for a new electric or plug-in hybrid vehicle. On April 18th, the IRS showed only six fully electric vehicles on the qualified list, but a day later Volkswagen confirmed its U.S.-built ID.4 also qualifies. That means right now, seven fully electric vehicles qualify for the full $7,500 EV tax credit, with three more from Chevrolet coming for the 2024 model year (we would expect these 2024 models to roll out slowly and be difficult to find for at least the first few months they are on the market). In addition to those seven fully electric cars, two plug-in hybrids also qualify for the full $7,500 credit. To qualify, a vehicle must be assembled in North America and must meet a strict set of guidelines that cover where battery materials were sourced. If any battery materials come from certain countries (importantly including China), the vehicle's tax credit is automatically cut in half. Further, according to the IRS, the vehicle's manufacturer suggested retail price (MSRP) can't exceed $80,000 for vans, sport utility vehicles and pickup trucks or $55,000 for any other type of vehicle (basically meaning sedans). Electric vehicles that qualify for the full $7,500 EV tax credit: Cadillac Lyriq (2023-2024) Chevrolet Blazer EV (2024) Chevrolet Bolt EV (2023-2024) Chevrolet Bolt EUV (2023-2024) Chevrolet Equinox (2024) Chevrolet Silverado (2024) Ford F-150 Lightning — all models (2022-2023) Tesla Model 3 Performance (2022-2023) Tesla Model Y — all models (2022-2023) Volkswagen ID.4 — U.S.-built models (2022-2023) Plug-in hybrid cars that qualify for the full $7,500 EV tax credit: Chrysler Pacifica PHEV (2022-2023) Lincoln Aviator Grand Touring (2022-2023) A smaller credit is offered on fully electric cars and plug-in hybrids that are assembled in North America but have batteries with materials sourced from unqualified countries (mostly China).