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Proposed Changes to Federal EV Tax Credit – Part 2: End of the Manufacturer Sales Phaseout

EV Adoption

Arguably the biggest flaw in the Plug-In Electric Drive Vehicle Credit ( IRC 30D ) regulations is the triggering of a phaseout schedule of the tax credit when a manufacturer sells 200,000 total EVs (BEV and PHEV). What is less clear is how Tesla and GM will handle leases.

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New bipartisan bill in US Congress to expand EV and hydrogen fuel cell tax credits

Green Car Congress

US Senators Debbie Stabenow (D-MI), Lamar Alexander (R-TN), Gary Peters (D-MI), and Susan Collins (R-ME) along with Congressman Dan Kildee (MI-05) introduced the Driving America Forward Act, bipartisan legislation to expand the electric vehicle and hydrogen fuel cell tax credits.

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Proposed Federal EV Tax Credit Reform: Will It Move the Sales Needle?

EV Adoption

For electric vehicle observers, the legislation contains two key provisions: The first would extend the tax credit to automakers who already reached the current phaseout level of 200,000 EVs sold with another 400,000 vehicles, but with a reduction to $7,000 from the current maximum $7,500 credit. Chart Source: EV Volumes.

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2018 Chevy Equinox drops almost 400 lbs; about 10% of mass

Green Car Congress

The 2018 Chevrolet Equinox SUV has dropped nearly 400 pounds (181 kg)—approximately 10% of its mass—compared to its predecessor. The 2018 Equinox’s body structure design was optimized with a mixed-material strategy for strength and low weight. diesel model offers a GM-estimated 40 mpg highway fuel efficiency.

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GM restructuring; changing product development, production; 5 NA & 2 international plants shutting next year; staff reduction

Green Car Congress

GM expects these actions to increase annual adjusted automotive free cash flow by $6 billion by year-end 2020 on a run-rate basis. GM is evolving its global product development workforce and processes to drive world-class levels of engineering in advanced technologies, and to improve quality and speed to market.

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Report: California cumulative PEV sales at 10.5% of 2030 goal; true ZEVs at 5.6%

Green Car Congress

According to a new report from the California Center for Jobs and the Economy, California’s cumulative plug-in vehicle (PEV, including PHEVs and full EVs) sales are at 10.5% Accounting for normal fleet turnover rates and reductions from persons moving out of California, PEV sales would need to be 2.9 True ZEV sales would have to be 5.0

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If $50,000 EVs still lose $6,000, when will EVs become profitable?

Baua Electric

Legacy automakers are still losing thousands of dollars on many EV sales, according to newly published analysis from the Boston Consulting Group. BCG estimates that most automakers lose around $6,000 on each EV they effectively sell for $50,000, that price accounting for any tax credits or other incentives the customer might be eligible for.