This week CAR is joined by two special guests from CAR, Ann Schlenker, Director of Government Research Programs, and Edgar Faler, Managing Director of Financial Analytics and Industry Strategy. Ann shares valuable information on an opportunity of interest for many of our subscribers, while Edgar shares details on his recent research publication impacting 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.
Hot Topics of 6/8/2023
Qualifying Advanced Energy Project Credit (48C) Program:
Ann’s insights:The 48C—established by the 2009 Recovery Act and expanded with a $10 billion investment under the Inflation Reduction Act of 2022 —aims to strengthen U.S. industrial competitiveness and clean energy supply chains.
-
The 48C tax credit aims to play a critical role to create high-quality jobs, reduce industrial emissions, and increase domestic production of critical clean energy products and materials.
-
The first round of credits in 2009 is attributed to over 17,000 new jobs and was oversubscribed by 3 to 1 for a continuing pent-up demand.
-
This new tax credit round has a carve-out of $1.6B for projects in designated energy communities with closed coal plants and mines.
-
DOE plans to leverage the credit allocations for small and medium-sized manufactures to support the local and regional economies and supply chains.
Projects will be evaluated on [1] commercial viability, [2] greenhouse gas emissions impacts, [3] workforce and community engagement, and [4] strengthening the US supply chains and domestic clean energy manufacturing.
DOE Informational Webinar
DOE and Treasury will host a virtual informational webinar for potential applicants on June 27, 2023, at 2 p.m. ET. This webinar will provide information about how to prepare and submit the concept paper. Webinar details on the link above.
CAR Study Finds FTC Proposed Rulemaking on Auto Retail Would Increase Consumer’s Time and Costs when Purchasing a Vehicle:
Edgar’s research:The Trade Rule, which was published on July 13, 2022, urges stakeholders to present data, including cost implications and benefits before the FTC issues a final rule. CAR's study aims to shed light on the potential impacts of this proposed regulation.
According to CAR's estimations, the Trade Rule, if implemented in its current form, would necessitate an additional two hours to complete the vehicle purchasing process.
CAR also examined the dealer compliance costs that would arise from the proposed rule. The study estimates that each dealership location would face median upfront compliance costs of USD46,950, i.e., a total upfront cost of USD 2,184,348,750 for automobile dealers nationally.
Read the full Publication on our website.
To read previous Hot Topics, please visit our Feature Stories tab at cargroup.org.
Best Regards,Research TeamCenter for Automotive Research
