Automakers Rush to Sell Electric Vehicles Before Biden Signs Bill with New Rules
August 12, 2022 - Automakers are scrambling to sell their electric vehicles before Friday to get in front of new, more stringent requirements tax credits for the cars that will kick in when President Joe Biden signs the clean energy and healthcare bill set for a vote in the House at the end of the week.
The Inflation Reduction Act, expected to clear the House Friday, includes additional restrictions on eligibility for the $7,500 electric vehicle tax credit, including new sourcing requirements for battery materials, as well as an assembly rule requiring electric vehicles to go through the final stages of manufacturing in North America.
The measures are meant to incentivize more domestic electric vehicle manufacturing. But in the short term, industry officials say, the new requirements could make it difficult for most to qualify for the tax credit.
Changed Priorities Ahead
Paul Lauria, founder of Mercury Associates, is no stranger to FMW. We always appreciate the opportunity to sit down with him to learn his thoughts on the state of the fleet industry. Although he has recently retired from the fleet management consulting giant, he continues to serve the company as Senior Advisor.
Mercury advises both public and private fleets, thus Lauria has a superb vantage point from which to survey all facets of the industry.
In our latest interview with Lauria, he boldly states, “I believe that fleet management is going to change more in the next decade than it’s changed in the last century.” And then he tells us why.
Drive Safety!
Janice Sutton
Editor in Chief
Is Sustainable Mining Possible? The EV Revolution Depends on it.
August 11, 2022 - Tamarack, Minnesota, sitting atop a treasure trove of metal used to power electric cars, is fast becoming a test case of whether the auto industry can meet this critical climate moment by sourcing colossal amounts of battery materials domestically and sustainably.
The climate package awaiting a vote in the House, gives new momentum to companies such as Talon Metals, working to persuade locals that it can extract thousands of tons of nickel without making an environmental mess. The legislation includes tax credits available only to purchasers of electric cars built with components from the United States or a handful of friendly nations. Few car models would even qualify right now.
“The history with these types of mines is pretty terrible in the U.S.,” said Tom Anderson, whose family has owned property in Tamarack since his great grandfather built a homestead three miles from the proposed mine in 1896. “They could make it clean if they spent enough money, but nobody has ever done that.”
Tesla Drivers Are Taking to the Streets to Test Whether Full Self-Driving Technology Stops For Children
August 11, 2022 - Tesla drivers are staging their own tests to determine if the carmaker's Full Self-Driving (FSD) software stops for children.
On Tuesday, a video from Tesla critic Taylor Ogan went viral after it showed a side-by-side comparison of a Tesla next to a Lexus that appears to be equipped with Luminar autonomous driving sensors. In the clip, the Tesla plows over a child-sized mannequin, while the Lexus slows to a halt mere feet from another mannequin.
The video — which was taken in May in San Mateo, California and now has over 12 million views on Twitter —has since spurred multiple users to test how Tesla's FSD interacts with children.
The Average New Car Price Hit $48,182 in July, A New All-Time Record
August 10, 2022 - Does anyone else remember when $50,000 could get you a pretty luxurious new car? According to Kelley Blue Book, those days are long over: In July, the average new car sold in the U.S. cost $48,182 here in America, beating out the previous record, which was only set in June.
In its report revealing the new all-time record, KBB makes a pretty interesting argument: Buyers are currently more annoyed by a lack of available inventory than they are by high prices. The COVID-19 pandemic saw a squeeze on the supply chain and increased demand for affordable vehicles.
There is one bit of good news, though: asking prices for electric vehicles dropped 2.3 percent in July compared to a year ago! Just ignore the fact that the average asking price of an EV ($66,000) is still well above the industry average.
