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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.

Jeep delivers basketful of concepts for the Moab Easter Jeep Safari

It's Easter time, and that means it's time for the 52nd Annual Moab Easter Jeep Safari, held March 24 through April 1, where thousands of off-roaders crawl, scrape and scramble over the rugged trails of Moab, Utah. And that brings us to this year's colorful collection of Jeep concepts, custom-built by FCA for the occasion. Jeep Wagoneer Roadtrip View 7 Photos This year there are seven Easter treats — including one called Wagoneer and one called Jeepster. All are decked out in Mopar parts. (Mopar already has 200-plus parts and counting for the all-new 2018 Jeep Wrangler.) Here then, is this year's Easter pageant of Jeeps: Jeep 4SPEED This year's lightweight concept is meant to bolster off-road performance through extensive weight savings. It's powered by the all-new 2.0-liter turbocharged I-4 engine with an eight-speed automatic. Carbon fiber abounds — the stuff is used for the hood, fender flares and the rear tub, which also features aluminum perforated panels. It gets an "aggressively swept back" look via raked windshield, longer door openings and a custom cage. It's also 22 inches shorter with improved approach and departure angles, though the wheelbase remains unchanged. And it gets Dana 44 front and rear axles with a 4.10 gear ratio and 18-inch lightweight monoblock wheels with 35-inch tires. Inside, there's a custom instrument panel, custom seats and deleted back seats. Footwells are perforated aluminum. The 4SPEED is so much lighter than stock, it rides two inches higher. Jeep Sandstorm This one's inspired by Baja desert racers but can still be used as a daily driver. It gets an extreme-duty suspension system capable of both tasks. The front axle has been moved forward four inches and takes a heavy-duty longarm four-link suspension and track bar. The rear axle has been moved back two inches and gets a triangulated trailing arm four-link suspension. The longer wheelbase provides better high-speed stability. The front wheels — 39.5-inch tires on 17-inch beadlock wheels — get custom coilovers and bypass shocks that allow 14 inches of travel in front and 18 in back. It gets Baja styling cues such as a vented carbon fiber hood, vented high-clearance fender flares and a cage with lay-down spare tire carrier. There are no exterior door handles, and the rear doors have been chopped.

FCA profits surge in second quarter

Fiat Chrysler Automobiles gave the cash register a beating in the second quarter, improving its net profit to 333 million euros ($364M US), which is a 263-percent jump over its reported Q1 profit of 92 million euros ($108M US). At the same time, FCA improved its global profit margin to 7.7 percent. Compared year-over-year, in Q2 2014 FCA reported net profit of 197 million euros making this year's Q2 a 69-percent increase, and profit margins a year ago were 4.9 percent. The two big factors for this increase are strong NAFTA sales and Jeep. In the US alone, Jeep sold 222,940 units in Q2 this year, a jump of almost 20 percent over the same period last year. Revenue in the NAFTA region totaled $18.8 billion, adjusted earnings before interest and taxes were $1.45 billion, both of those numbers more than doubling compared to 2014. The vastly better numbers come on marginally more global sales, 1,181,000 units sold in Q2 2014, 1,193,000 units sold in the same span this year. In the US, FCA began charging dealers one-percent more for vehicles to up the margins, a move that helped boost its US margin from 4.1 percent a year ago to 5.8 percent the first half of this year. The company is holding steady on its guidance of global deliveries at 4.8 million and its net profit guidance at $1.1 to $1.3 billion. It has increased its adjusted outlook for the year to $120.5 billion in revenue, and EBIT to "over $4.93 billion." News Source: Automotive News - sub. req.Image Credit: AP Photo/Carlos Osorio Earnings/Financials Chrysler Fiat Jeep FCA