March 15, 2024

This week we are joined by a special guest, Dr. Snehasis Ganguly, Senior Industry Analyst at CAR. Snehasis covers and shares his thoughts on the latest Hot Topics happening in the automotive industry. We would love to hear from you and welcome your questions anytime. If you're interested in sharing your thoughts with us on Hot Topics or would like to ask us a research question, please contact Carolyn Mozheev.

EV Tax Credits:

GM says it built about 20,000 EVs that did not qualify for tax credits
Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After
GM optimistic about EVs, despite $150 million hiccup and return of hybrids
To get the $7,500 electric vehicle tax credit, you may no longer have to wait until tax season

Snehasis’ thoughts:

Due to revised regulations, General Motors (GM) missed out on a tax credit for 20,000 electric cars, resulting in a $150 million cost to GM. GM remains optimistic about the future of EVs even though the path forward is more complex, including EPA objectives. There are many federal, state, and local-level tax incentives for new and used EVs, but OEMs, dealerships, and customers must carefully understand the laws. For example, starting in 2024, a point-of-sale discount will be offered to customers by participating dealers. Customers no longer must wait until tax season, the year after purchase.

Manufacturing & Plant Developments:

Snehasis’ thoughts:
The plan for LT Precision to open a manufacturing operation in Holland, Michigan, is a win for the state of Michigan and demonstrates a successful partnership between national, state, and local levels. Therefore, the speed and ease of doing business across the United States remains crucial in deciding where to invest. Rivian is moving away from its under-construction Georgia plant to use an existing Illinois facility, and Taiwan Semiconductor Manufacturing Company (TSMC) is struggling with building a plant in Arizona. Thus, it is in the broader national interest for individual states with advanced manufacturing endowments to remain attractive places to do business. This includes factors such as cost of living, price, reliability of electricity, water rights, local taxes, and local building regulations.

Battery Sourcing & Tech:

Snehasis’ thoughts:

Saudi Arabia and the United Arab Emirates' national oil companies plan to extract lithium from brine in their oilfields, which aligns with efforts to diversify their economies and profit from the shift to electric vehicles (EVs). At the same time, lithium prices were lower because market demand for electric vehicles fell below industry expectations, even though factory capacity grew. A few innovations in sustainability and battery charging are at the forefront of the news. MIT has designed a new lithium-ion battery with a cathode based on organic materials instead of cobalt or nickel. Another innovation is Breathe's algorithm-based charging software, which provides greater visibility on the health of individual cells within the battery pack, allowing the EV to charge at full power while maintaining safety and without altering battery chemistry.

Join Us at Our March Event Next Week!

CAR Industry Briefing:

Understanding the Forces Shaping the Auto Industry

This Industry Briefing dives into production forecasts, policy updates, & workforce trends. Gain insights, network & stay ahead of the curve.

When: Tuesday, March 19, from 8:45 AM to 1:00 PM

Where: Michigan Manufacturing Technology Center

Agenda:

8:45 AM - Check-In, Networking, Continental Breakfast

9:30 AM - Welcome Remarks

9:45 AM - CAR Research Update & Presentations

10:45 AM - Break

11:00 AM - Guest Speakers

12:30 PM - Panel Discussion

1:00 PM - Closing Remarks

To read previous Hot Topics, please visit our Feature Stories tab at cargroup.org.

The Center for Automotive Research is a nonprofit organization; its mission is to inform and advise, through independent research, education, and dialogue, enabling a more viable and sustainable automotive ecosystem.