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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.

Buy this instead of a Wrangler | 2017 Jeep Grand Cherokee Trailhawk Review

In our first encounter with the 2017 Jeep Grand Cherokee Trailhawk at Fiat Chrysler's Chelsea Proving Grounds, we saluted the new model's impressive on-road demeanor. In its off-road mode, however, we couldn't ignore the pre-production throttle calibration – it was super sharp and difficult to modulate with the precision needed to navigate obstacles. We were told then that Jeep's engineers were aware of the problem and were fixing it for production models. So we recently set off for Bundy Hill Off-Road Park in Jerome, Michigan, in a production-spec Grand Cherokee Trailhawk to check their work and get a better idea of the overall package. We can report that the Trailhawk's throttle has been fixed for production, landing it properly in Goldilocks territory. In the off-road Mud setting, the throttle is soft and easy to modulate. You can balance this rig with the gas pedal, reaching just past tip-in to steadily prod forward. But the gas pedal doesn't delay when you really need power. Move beyond the initial tip-in, and the engine responds quickly, which is a good thing, as a sluggish throttle is almost as dangerous off-road as one that's too sharp. Rock mode promises even more precise control over the throttle, although our lack of a spotter and a desire to avoid damaging the 700-mile-young Trailhawk kept us from hitting Bundy Hill's rockier sections. The wet, non-snowy weather meant we didn't properly test Snow or Sand mode. This test model was equipped with FCA's popular 3.6-liter V6, but like the rest of the Grand Cherokee range, more power is available from the 3.0-liter EcoDiesel V6 and the 5.7-liter Hemi V8. You don't need them – the 3.6-liter and eight-speed automatic are perfectly fine on the trails. Faced with an incline, the transmission holds its gear without complaint – you don't even need to switch into manual mode. Despite the 4,800-rpm torque peak, the V6's 260 pound-feet arrive early enough that you don't need to strong-arm the throttle. So that's resolution for the pre-production issue. But our time at Bundy Hill exposed a different and ultimately much easier to fix problem for the production model. Late fall in Michigan is not always a good time to go off-road – sub-40-degree temperatures and a steady, depressing drizzle can turn a relatively simple trail into a slippery mess of wet clay. Conditions like these can easily overwhelm an on-road tire like the Goodyear All-Terrain Adventures the Trailhawk uses.

Chrysler axes old V6s, goes all-Pentastar

Old technology has a way of lingering on, particularly at Chrysler headquarters in Auburn Hills. So while the Pentastar V6 has replaced the older engine architecture in just about every application, it still soldiered on in some export markets. But the introduction of a new 3.0-liter Pentastar V6, produced in Michigan and meant only for the Chinese market, has put the final nail in the old engine's coffin.
Fitted into the 2014 Jeep Grand Cherokee and Jeep Wrangler just introduced to China at the Chengdu Motor Show, the downsized six uses the same architecture as the larger 3.6-liter Pentastar V6. But because of its 2,997cc capacity, it can be exported to China without the increased duty the 3.6-liter or even 3.2-liter Pentastar engines would incur. The 3.0-liter V6 develops 230 horsepower at 6,350 rpm and 210 pound-feet at 4,400 rpm.
Admittedly, it's unlikely, but even though the engine was said to be created solely to undercut tax thresholds in China and Europe, the 3.0-liter Pentastar has recently surfaced in rumors of an application here: as the boosted heart of a potential Cherokee SRT with anywhere from 375 to 410 hp.