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Showing posts from March, 2023

Inflation Reduction Act Paying Off as Battery Makers Invest Billions in U.S. Factories

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Sales of battery-electric vehicles have grown by more than 750% since 2019, and the majority of those EVs are now produced in the U.S. But a sizable share of the batteries used for those vehicles are being imported, largely from China, the world’s largest producer of lithium-ion technology. Ford is just one of the automakers in the U.S. finding ways to ramp up EV battery production. That’s something expected to change dramatically over the coming decade. Domestic production of EV batteries could grow by as much as 2,000% by 2030, according to a forecast by the U.S. Department of Energy. Last year alone, industry data shows that $73 billion in projects were announced for the U.S., many of them following the August passage of the Inflation Reduction Act which ties EV incentives to domestic production of their batteries, along with local sourcing of the critical minerals they require. “So far, 17 new EV battery facilities have been announced, aided by the latest round of Federal in...

Back in Production, Ford Again Raises Pricing for F-150 Lightning.

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Defying predictions of an imminent price war in the EV market, Ford Motor Co. again raised the price of its F-150 Lightning pickup. Citing a several issues, Ford is raising the price on the F-150 Lightning — again. It’s raised prices three times since August. The move comes as the Detroit automaker begins ramping production back up after having to idle the Lightning plant due to a battery-cell manufacturing problem linked to at least one fire at a factory holding lot. The latest in a series of increases sees the base version of the electric pickup jump to more than $60,000 after factoring in delivery fees. That’s roughly 50% more than what Ford originally targeted before Lightning officially went on sale about a year ago. Pricing is prickly Automakers have been struggling to find the sweet spot when it comes to pricing their battery-electric vehicles. Currently, EVs are averaging around $65,000, according to data from groups like J.D. Power, Edmunds and Kelley Blue Book. Tha...

First Look: 2024 Hyundai Sonata

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The 2024 Hyundai Sonata is far more attractive than the car it replaces. As most American automotive brands have abandoned those drivers who still prefer sedans, there are other manufacturers who haven’t forgotten them. One of them is Hyundai, which just released details of the revised eighth-generation 2024 Hyundai Sonata, and it’s likely to be the best-looking version yet of this midsize sedan.  A dwindling segment The Sonata competes in a shrinking segment, with overall 2022 sales dropping 10% from 2021. Once America’s most-popular vehicle type, many mainstream manufacturers have pulled their entries, including Buick, Chrysler, Dodge, Ford, Mazda and Mitsubishi. Chevrolet still has the Malibu, but they’re letting it slowly wither on the vine rather than make it a serious contender. So, in essence, Detroit has abandoned midsize car buyers, leaving the segment to Chevrolet (albeit half-heartedly), Honda, Hyundai, Kia, Nissan, Toyota, Subaru and Volkswagen.  The 20...

A Week With: 2023 Nissan Rogue Platinum AWD

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This week, I went Rogue; 2023 Nissan Rogue. Such terrible jokes fall flat on the Nissan Rogue, as its name is the antithesis of its character; there’s nothing rogue about it. And for 2023, that doesn’t change. Overview The 2023 Nissan Rogue’s clean styling should age well. The Nissan Rogue is far from one because it trolls the mainstream market as a compact SUV that’s the automaker’s chart-topping U.S. vehicle. How popular is it? It outsold the second-place Nissan Altima midsize sedan by 25% last year. With that kind of popularity, it’s little wonder that Nissan Rogue carries over largely unchanged for 2023, with the exception of a new Midnight Package. Nissan offers the 2023 Rogue in S, SV, SL and Platinum trim, starting at a reasonable $27,760 with front wheel drive, although all trims come with either front- or all-wheel drive, with our Platinum all-wheel drive test vehicle starting at $38,640. Exterior The 2023 Rogue proves to be quite handsome, particularly in its blue a...

Despite Two Decades of Warnings, Distracted Driving Remains a Major Problem

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In 2023, if you need to be told that distracted driving is dangerous driving, you’ve probably been living in a cave somewhere for the past 20 years. Yet driving with our minds elsewhere remains a consistent, and sometimes fatal, problem on American roads.  Government data suggests distracted driving is responsible for nearly 10% of traffic deaths in the U.S. last year. In 2020, the National Highway Traffic Safety Administration (NHTSA) estimates that 3,142 people were killed due to distracted driving. That’s almost 10% of the 38,824 total traffic fatalities for the year.  In particular, younger people too often have their attention on their phones when driving. According to NHTSA research from 2017, drivers 16 to 24 years old use handheld electronic devices while driving at higher rates than older drivers, and that has remained true since 2007. But don’t go feeling smug Grampa, drivers of all ages are almost as bad about “just taking a glance” at their devices.  I...

Treasury Dept Ruling Expected to Cut EV Tax Credits

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The U.S. Treasury Department is expected to release its guidance on the battery sourcing requirements for EV tax credits contained in the Inflation Reduction Act of 2022 — and automakers are unlikely to be pleased. Only the rear-wheel drive version of the Tesla Model 3 currently qualifies for the new credits — and that’s expected to end. According to  a report by Reuters , car companies and other industry experts believe the guidance will result in fewer vehicles being eligible for the full or partial tax credit. The Treasury Department  delayed issuing the guidance  even though the law went into effect Jan. 1. That delay allowed some EVs that were not likely to meet the eligibility requirements to  continue to receive tax credits  for the first quarter of 2023. However, Treasury and the automakers needed time to determine if their battery mineral sources met the credit mandates. EVs that qualify for the revised tax credit  must be assembled in Amer...

Ford Bolsters EV Supply Chain with $4.5B Nickel Processing Plant

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Ford joined with two other companies in a $4.5 billion deal for a nickel processing plant in Indonesia, the U.S. automaker’s first investment in the country. Ford expects to make enough EV batteries to power 1 million vehicles annually. It’s not clear how much Ford is investing in the project. The  Michigan-based car maker is partnering  with PT Vale Indonesia and China’s Zhejiang Huayou Cobalt in the venture. Ford, like many other automakers, has been working diligently to secure the materials and production facilities needed to meet its electrification goals. In Ford’s case, officials are targeting a run rate of 600,000 EVs by the end of this year and 2 million vehicles annually by the end of 2026. By securing contracts now, they can get a better handle on costs, which is critical as automakers look to bring the down the price of EVs, which is currently about $17,000 higher than the average price of a new mainstream vehicle with an internal combustion engine. “...

Sen. Manchin Threatening to Sue Over New EV Battery Rules

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Senator Joe Manchin, who pushed for strict new limits on EV incentives, said he is “willing to go to court” if the Biden administration takes a loose view on new rules requiring local sourcing of batteries and the minerals used to make them. Sen. Joe Manchin (D-West Virginia) said he’d sue to put a halt to all EV incentives. The West Virginia Democrat told reporters Wednesday he is “willing to stop it all,” an apparent threat that could mean blocking all EV sales incentives, if “they … try to screw me on this.” The U.S. Treasury Department has so far delayed interpreting strict new language included in the Inflation Reduction Act passed by Congress last year, but is expected to issue guidelines in the coming days. Revised incentive rules As a strong proponent of battery-electric vehicles, President Joe Biden sought to expand and extend previous federal rules authorizing up to $7,500 in tax credits for buyers of qualified EVs. But the old law set a sales cap that several manufa...

Unified UAW Talks Tough Before Contract Talks with Detroit Three

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Even with the threat of a recession hanging over the U.S. economy, the United Auto Workers union believes it is in the strongest bargaining position in years as it prepares for contract negotiations with General Motors, Ford and Stellantis this summer and fall. New UAW President Shawn Fain set the tone by opening his remarks with Michael Buffer’s “Let’s get ready to rumble.” Delegates leaving the union’s Special Bargaining Convention in Detroit this week, including those who once campaigned for his opponent during the long, bruising and narrowly decided election for the UAW presidency, gave Shawn Fain credit for his emphasis on unity and taking a hard line on the upcoming negotiations. Delegates applaud Fain’s militancy Local union leaders from UAW Local 600 in Dearborn, Michigan pressing to make Ford the UAW target this year, distributed pins with the slogan, “I Don’t Want to Strike But I Will,” in the center. That tough talk was encircled by a partial list of demands the unio...

Faraday Future May Have One: Production Begins

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Chinese businessman and Faraday Future co-founder Jia Yueting For those who thought Faraday Future Intelligent Electric Inc. didn’t have a future, guess again.  On Wednesday, the automaker announced it has begun producing the FF 91 Futurist at its facility in Hanford, California. The company’s first production vehicle and flagship model is anticipated to be sold in both the Chinese and American markets. “Start of Production (SOP) of the FF 91 Futurist Alliance marks FF’s most solid step as a disruptor of the traditional ultra-luxury automotive civilization,” said company co-founder Jia Yueting. “It’s a promise we made to our users and shareholders, and we have delivered it today successfully. This shows that FF has entered a new phase under the governance and operation of the new board and management. We believe FF will quickly restore its due value to the marketplace.” The company is planning a launch event for the FF91 Futurist on April 26. Earlier this year,  the co...