When people ask me about EVs they should consider, I always mention the Mustang Mach-E. I think it looks great. The range and value are there, and I love the option of an LFP (lithium iron phosphate) battery. The extended range version, up until now, has also qualified for a $3,750 federal tax credit. The future of that credit is now in question.
The Treasury Department finally answered some of our questions about the requirements surrounding electric vehicle tax credits, but it’s been a waiting game to see which vehicles do or do not qualify. Ford, it seems, isn’t getting the rose.
This whole thing is already pissing off China, which is complaining that the United States is violating World Trade Organization guidelines. All of this EV stuff is also making some in Congress angry, and the House passed a bill trying to roll back the EPA’s plan to curb emissions.
And, finally, today’s Morning Dump will also discuss how one of China’s biggest companies just saw itself dropped from a Department of Defense project to increase energy security.
Get Your Mach-E While It’s Cheaper
As the man said, there are numerous ways you can choose to earn funds, and one of the simplest ways over the last year has been to buy an EV while the Inflation Reduction Act tax credit rules were a little vague. Starting next year they’re not going to be so vague.
One of the first victims of the clarification is Ford’s Mustang Mach-E with the extended battery. Prior to this point, the larger battery qualified for a $3,750 credit. As of January? Not so much.
From David Shepardson and Ben Klayman, via Automotive News, there’s this fun update:
Ford told dealers according to a bulletin seen by Reuters about the tax credit and said the expiration is “an excellent motivator to purchase before the end of the year. This is a great time to reach out to customers in your pipeline to close the sale and ensure they are able to receive the credit.”
So far as I can tell, Ford hasn’t explained why, but I’ve got a guess. The battery packs are seemingly assembled in Poland (a country we’re cool with) and then the car itself is assembled in Mexico. This means there’s a decent chance the content of the LG-supplied batteries contains enough materials from a ‘foreign entity of concern’ (China) that it’s no longer going to qualify under the stricter guidelines.
The good news is that the Mach-E you might want is the 250-mile range standard battery and that already didn’t qualify for the federal tax credit, so you’re still good.
Get the LFP Mach-E! It’s nice. [Ed Note: I find the Mach-E crossover to be rather boring, but it is well-executed, and it’s different than all the Tesla Model Ys running around. -DT]. It also seems like some Tesla Model 3s will lose half their tax credits based on updates to the Tesla site.
China Is Shook Over Tax Credit Changes
Potential Ford buyers are not the only ones upset over recent clarifications to the Inflation Reduction Act, which clearly targets China because China provides most of the stuff that goes into batteries (as much as 75% of the world’s battery-grade lithium, for example).
This is the unfortunate push-and-pull of the law as it was passed. On one hand, America desires to have a secure supply of batteries and not rely solely on China. On the other hand, America desires to have cheap EVs so it can meet its own emissions targets.
The Chinese government doesn’t love this development, to say the least. From a Reuters report on this development:
“Targeting Chinese enterprises by excluding their products from a subsidy’s scope is typical non-market orientated policy,” said He Yadong, a commerce ministry spokesperson.
“Many World Trade Organization members, including China, have expressed concern about the discriminatory policy of the U.S., which violates the WTO’s basic principles,” he said.
While China is clearly not pleased, there’s also a bit of working the refs on all sides here. In theory, the WTO does indeed try to encourage all partners to trade equally and fairly for the benefit of businesses and creators. In reality, China is complaining about not accessing what is essentially a business subsidy for its own likely unfairly over-subsidized companies, which is itself against the spirit of the WTO’s basic principles.
The United States is clearly not being fair to China, and if Iceland had robust lithium and cobalt operations I’m not sure it would be so protectionist. But maybe it would be? This is, to some degree, about slowing down Chinese supply while the West builds its own.
House Passes Bill To Curb Curbing Of Emissions
The United States House of Representatives, now short one at least half-way crook, has moved on to passing a bill trying to restrict the enforcement of the CARS Act, which seeks to curb emissions by requiring automakers to reach even more stringent CO2 goals.
I like tthiis description from The Detroit News about all the back-and-forth, which involves mostly Republicans (against the EPA’s proposal) complaining about this being an EV mandate and Democrats (supportive of the proposal) saying this is all grandstanding.
House Republicans in debate argued that the EPA’s rule is unattainable, unrealistic and unaffordable, as Walberg put it. They said it amounts to a de facto “mandate” to electric vehicles.
“No, there isn’t a word ‘mandate’ in there,” Walberg said in remarks off the floor. “But if you look at the tailpipe emission standards, the only way that can be met by 2032, starting in 2027, is with electric vehicles. Because what comes out of a tailpipe will never meet that standard ― I don’t care what you have. So they’re mandating EVs.”
This bill probably isn’t going to pass the Senate and, even if it did, it would be vetoed immediately. The bit about it not-not being a mandate is fairly amusing. It technically isn’t a mandate and I’d like to quote Rep. Tim Walberg, who is quoted above, from a different article:
“While EVs may play a large role in the future of the auto industry, Washington should not discount other technologies like hydrogen, hybrids, and the internal combustion engine,” said Republican Tim Walberg, a sponsor of the legislation.
Unlike in the EU, there’s no requirement that the reduction comes from any specific technology. If hydrogen is capable of doing this then let’s do hydrogen. Right? Anyone? Is this thing on?
Chinese Battery Company Loses Military Base Backup Job
CATL, probably the largest battery supplier in the world, did a project with North Carolina’s Duke Energy to provide storage for U.S. Marine Camp Lejune in the state.
The military installation has a solar power array and uses CATL-supplied batteries to store the energy collected for operations. As a press release points out, this was done for security:
“Through an enhanced use lease (EUL) and strategic partnership with Duke Energy Progress, MCB Camp Lejeune has been able to make an important investment in the pursuit of energy security inside the fence-line,” said U.S. Navy Cmdr. Ross Campbell, director of Public Works.
The 11-megawatt battery is the largest battery system in North Carolina, and it’s being integrated into the existing Duke Energy EUL 13-megawatt solar facility on base.
“These systems are part of the ongoing collaboration between Duke Energy, a strong supporter and advocate for our chamber, and the Department of Defense, to ensure energy security,” said Laurette Leagon, Onslow County Chamber of Commerce Executive.
So much for that. After pressure from Republicans, the batteries were disconnected temporarily over, uh, security concerns. From Fox News:
“Nevertheless, some concerns about this project have been raised, and, as a result, Duke Energy disconnected these batteries as we work to address these questions,” Duke Energy spokesperson Kaitlin Kirshner told Fox News Digital in a statement. “As an American energy company, we welcome the ability to use American-manufactured batteries.
“Given the rapidly increasing demand for electricity, we support more domestic manufacturing to help expand energy resources in the United States and accelerate the energy transition.”
Kirshner added that Duke Energy designs its projects with “security in mind.” She further noted the battery storage facility was connected to Duke Energy’s system with a “robust network security and safeguards fully in place,” not to Camp Lejeune’s internal network or other systems.
That bit about American batteries is such a burn, and the PR person deserves 25-to-life just killing it in a press statement.
Is this a thing? I feel like everyone involved would see this coming and try to avoid making the base insecure, but perhaps I’m wrong. I’m no expert.
This just goes to show how difficult being behind China in the creation of batteries makes everything.
The Big Question
Where was your daily driver built?
Honda CRV, Mexico. Mercury Milan, Mexico.
> Mercury Milan
I thought those were a myth, like Sasquatch or the reliable Alfa.
My daily is a Honda Civic built in Swindon, United Kingdom.
My wife and I both daily drive vehicles made in Fremont, CA.
If China can prove that Chinese made EVs will not be dumped in the US market (sold below cost) AND not made with forced labor, they have a solid case for their grievance.
We have a 2016 Subaru from Japan, a 2000 New Beetle from Mexico, and my 02 Tahoe was built here in Wisconsin, just a few miles from where I live.
Did ya’ll miss that the AM radio act was defeated in the Senate?
That is such a bizarre thing for lawmakers to get involved in.
Daily driver: 2024 Volvo S60 T8 Recharge was built in Malaysia. Which is funny because I work at the plant where they are built in South Carolina. But these are the ones some of us get for employee leases..
Wife: 2008 Honda Fit – Japan
Dog’s Car: 2010 Volkswagen Routan – Canada. A Canadian-built minivan from a German manufacturer in partnership with an American company.
My daily driver was built in Australia. Engine and transmission I think came from Mexico.
Holden Cruze?
Hiroshima. So was wifey’s. Our SUV was built in Kansas, and my project car/autocrosser was built in Coventry, UK.
“The United States is clearly not being fair to China, and if Iceland had robust lithium and cobalt operations I’m not sure it would be so protectionist. But maybe it would be?”
We are protectionist enough about Iceland to build a military base on it and keep B2 bombers there:
https://en.m.wikipedia.org/wiki/Naval_Air_Station_Keflavik
Now if China would only let us build bases and keep our weapons on THEIR land (fully under our control of course) like a good friendly *cough* subjugated *cough* country should maybe we’d get more minerals from China.
You people giving me ideas to google… Interestingly no foreign country has a base in the US, though there are joint ops with some on US bases. The US has bases in 85 countries!
Odd how that works isn’t it…
Two are from Ghent, Belgium and one from Hiroshima, Japan.
Half of my fleet was built in the US, I also have two cars from Mexico, one from Germany, one from Japan and one from CHINA!! oh no lol
Our recently-acquired Ford Territory was built in my home city: Melbourne, Australia. Sadly, Australian manufacturing is no more.
Our Mazda 3 was built in Japan.
My work truck, a 2500 Ram, came from Saltillo, Mexico. My S197 came from Flat Rock, Michigan. The ‘73 D100 I’m not certain, I’ll have to consult the build sheet..
engine built in Cologne Germany, transmission in Bordeaux France, proudly driving American ! Ford Sport Trac 2004..
Japan and Mexico. Saabaru and Ram truck.
Depends what I’m using for a daily on any given week:
2014 Chevy Spark: GM’s Changwon plant, South Korea
2012 Chevy Volt: Hamtramck, MI
2000 Jaguar XK8 (what I drove today): Coventry, England
1994 Cadillac Fleetwood: Arlington, TX
My Daily Drivers were built in:
Sweden: Torslanda (Torslandaverken)
Belgium: Ghent
Hermosillo, Sonora, Mexico
Hobby car: Crewe, England
The family’s daily (Armada Y62) was built by Nissan Shatai in Kanda, Japan.
My Frontier was built in Symrna, Tennessee
Three of my cars came from Bowling Green, KY, and one came from Mexico so all from the Americas.
As far as China complaining about the targeted EV rebates… lol
First you guys put an autoplay TikTok vid in an article, and now you want data on where our cars were built after discussing Chinese sanctions? Awfully suspicious…
Hmmm…. ヾ(´(ｴ)｀ﾉﾞ
I think you have replied to me with the same sorta hieroglyphic type thing before. I don’t speak whatever the hell that language/font sign language is, lol
ヾ(´(ｴ)｀ﾉﾞ = thinking
as in, you got me thinking that you’re on to something with your observations!
( I meant this in jest as I believe you did as well)
Yeah, I was just f’n around but I’m not kidding that I have no idea when you/anyone does those keystroke drawings. It just looks like you are having a seizure while typing.
They’re called kaomoji, and some of them are hilarious.
https://japaneseemoticons.org/
http://kaomoji.ru/en/
You’re probably flipping a table in anger:
(╯°益°)╯彡┻━┻
If you have to describe them then just use words in the 1st place.
You know what they say, a picture says a thousand words.
༼ つ ◕_◕ ༽つヽ༼ຈل͜ຈ༽ﾉ
I feel a hot wind on my shoulder
And the touch of a world that is older
Push the clutch and change the gear
Leave it in 5th and cruise along
I hear the drone of the turbo
I have cruise control but never use it
I see the light on the dashboard
Can’t understand just what does it mean?
I’m in a Mexican VW
I’m in a Mexican VW
VW
VW
My 2001 that I bought new and have DDed the entire time has Cruise Control. I would have to think about how it if I wanted to turn it on.
+1 for Wall of Voodoo (Andy Individual 12″ VeeDub Mix).
Gunma, Japan, as were 3 others. None of the cars I’ve owned were built in a country different from where the company was based (Japan and USA). Not something I sought, it just worked out that way and I think it’s adjacent to slightly interesting.
My Colorado came from Missouri, my wife’s CRV came from Indiana. Both were bought based on the merits of the vehicle itself, not who or where it was built. I’ve worked for both companies so that wasn’t really a consideration either.
Both of my Japanese cars were built in Indiana!
Both my cars, also Japanese, were also built in Indiana!
Why isn’t every gasoline engine flex fuel by now? That would help.
Do they still make CNG and LPG cars? The Civic GX was the most popular NGV, and a few domestics such as the Contour and Cavalier were available as bi-fuel gasoline/CNG.
Don’t at least some buses run on CNG?
One place where electric makes the most sense is school buses. That is where any EV mandate should start, since they have the ideal conditions for EV. Regular, short, steady routes, and time during the day to recharge.
My local transit system has diesel, npg, electric buses. They have fueling stations for all 3. No driver likes the electric buses.
For some reason they use regular sized buses for direct rides for 1 passenger trips.
Garbage trucks as well.
But I wonder about the draw from the hydraulics which lift & dump our cans. So maybe not.
There are ePTOs for those applications. They are basically hydraulic pumps with a high voltage motor attached. Although I’m not sure how power hungry those hydraulics are. If the way a garbage truck revs when compacting is any indication, the dump will need DC fast charging stations where the trucks unload.
NGV cars suffered from poor performance, range and cargo space compared to their gasoline and diesel counterparts. They didn’t have to but they were half assed adaptations of existing vehicles so lots of compromises were made.
Now if you want a PROPER NGV car just take a 2nd gen Mirai and replace the fuel stack with the hybrid drivetrain from the Camry (or maybe the RAV4 for a performance version). You’ll get at least 700-800 miles per fillup and decent performance to boot.