Be The Change
Hyundai Engineering Company announced plans to expand its electric vehicle (EV) charging network in South Korea by installing equipment at public institutions, local government offices and private buildings, including apartment complexes, nationwide.
Congress is getting an earful these days from America’s trade partners about the tax credits it is proposing on electric vehicles (EVs).
The complaint is that these tax credits, as written, are biased against imports, and run afoul of global trade rules. Canada and Mexico, for example, are talking about challenging the tax credits at the U.S.-Mexico-Canada Agreement (USMCA). Others, including Korea and Japan, say they might file disputes at the World Trade Organization (WTO). Last week, the European Union (EU) wrote to Senate leadership that, unless rewritten, the EV tax credits “will result in unjustified discrimination” against European cars and car parts. This letter is a game-changer, because the EU is credibly poised to retaliate.
First things first. As I’ve recently written, the tax credits come in at $12,500 per vehicle, but with protectionist fine print. The House’s Build Back Better proposes that $4,500 of this be contingent on the car being made by unionized labor, and that another $500 go to EVs with at least 50 percent U.S. content by value and have a U.S. battery. The full $12,500 tax credit would require both by 2027. The Senate’s version ties $2,500 to final assembly being done by unionized labor, and another $2,500 if the manufacturing facility is located in the US. By 2026, however, the full tax credit would require that both boxes be checked.
Farizon Homtruck
Geely’s commercial vehicle group, Farizon Auto, is planning to roll out the new Homtruck in 2024 and is targeting international markets too, the divisions CEO Mike Fan told CNBC in an interview on Monday.
“This product is designed and developed facing the global market,” Fan said, according to a CNBC translation, adding that the company would target Europe, Korea, Japan and North America, with the new vehicle.
Geely’s Homtruck launch comes as a number of automakers from Mercedes-owner Daimler to Warren Buffett-backed BYD have announced their own electric trucks. Tesla, which announced its own truck called the Semi in 2017, has delayed production of that vehicle for some time.
Elsewhere » Just Auto
The European Union, Germany, Canada, Japan, Mexico, France, South Korea, Italy and other countries wrote U.S. lawmakers saying a proposed U.S. electric vehicle tax credit violates international trade rules, according to a joint letter made public Saturday.
A group of 25 ambassadors to Washington wrote U.S. lawmakers and the Biden administration late Friday saying “limiting eligibility for the credit to vehicles based on their U.S. domestic assembly and local content is inconsistent with U.S. commitments made under WTO multilateral agreements.”
The U.S. Congress is considering a new $12,500 tax credit that would include $4,500 for union-made U.S. electric vehicles and $500 for U.S.-made batteries. Only U.S. built vehicles would be eligible for the $12,500 credit after 2027, under a House proposal released this week.
Canada and Mexico have issued separate statements in the last week opposing the plan. The U.S. State Department declined to comment Saturday and the White House did not immediately respond to a request for comment.
On Friday, Stellantis and South Korea‘s Samsung SDI have signed an deal to produce electric vehicle battery cells and modules in the United States.
Earlier this week, the forth largest automaker signed a similar agreement with South Korean battery maker LG Energy Solution to produce battery cells and modules for North America.
The batteries produced under these agreements will supply Stellantis’ Canadian, Mexican, and American assembly plants for installation in hybrid and fully electric vehicles.
Stellantis has said it wants to secure more than 130 GWh of global battery capacity by 2025 and more than 260 GWh by 2030.
Stellantis earlier this year announced it would invest more than 30 billion euros through 2025 on electrifying its vehicle line-up. It has set a goal that its electric vehicles will account for more than 40 percent of its U.S.A. sales by 2030.
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