News: Cutting up Quilts

Sometimes, the headlines form a quilt, and we stitch it together and send it your way. Other times, the headlines are overwhelmingly focused on the same thing, so we cut them into pieces and send them your way. Either way, you're getting a lot of fabric. Enjoy.

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EU (Finally) Announces Tariff Details

Most of us don’t live in China or Europe, but the automotive industry is like baseball. Sometimes, it’s a big team situation (in the field), and sometimes, it is a solo effort (at bat). The EU’s Chinese Tariff news feels like something that could change how either side is playing for a bit.

What's Happening?

Starting in July, the European Commission will impose additional duties of up to 38.1% on imported Chinese electric vehicles. This follows the United States' recent decision to increase tariffs on Chinese EVs to 100%. The tariffs target what the EU describes as excessive subsidies to Chinese automakers.

Who's getting these terrifying tariffs?

• BYD: 17.4%
• Geely: 20%
• Nio: 21% (But they've already said they aren't worried about it)
• SAIC: 38.1%
• Tesla and BMW: Potentially lower tariffs due to cooperation with the investigation.

Chinese Response

While The Chinese Passenger Car Association believes the impact on most firms will be minimal, the nation's leaders called the decision protectionistic. They warned it could damage China-EU relations or disrupt the global auto supply chain. Beijing said it would do what it must to protect its interests.

Effect on European Automakers

• Shares in European companies like BMW and Volkswagen fell due to fears of Chinese retaliation.
• Analysts suggest the immediate economic impact will be small, but the tariffs aim to curb the future growth of Chinese EV imports.

This is a big trade policy change with effects we have yet to see or consider. We imagine some shake-up in the markets, starting with the stock market.

Tax Credit Reimbursements Hit $1B

The federal government has issued over $1B in upfront tax credits for EV buyers, as the Treasury Department and IRS announced.

• Upfront Credits: Available from January 1, 2024.
• Amounts: $7,500 for new EVs and $4,000 for used EVs.
• Eligibility: Available at the point of sale, regardless of federal tax liability.
• Adoption: The credits have been utilized by 125K new EV buyers (90% of eligible transactions) and 25K used EV buyers (80% of eligible transactions).
• Impact: Aims to make EVs more affordable and competitive with gasoline-powered vehicles.
• Manufacturing Standards: Some models must meet North American manufacturing criteria to qualify.

Charging Infrastructure Investments

Ionna, an EV charging company backed by BMW, Honda, General Motors, Hyundai, Kia, Mercedes-Benz, and Stellantis, is set to revolutionize the U.S. EV infrastructure.

Headquartered in Durham, North Carolina, Ionna plans to establish a national DC fast charging network. With $10.1M invested, the project promises 203 jobs and the installation of 30K chargers by 2024.

The "Quarterback Lab" will enhance interoperability and customer service. Despite political challenges and reliance on NEVI funding, Ionna is committed to advancing EV adoption in the U.S., aiming for a user-friendly charging experience akin to traditional gas stations.

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How do you think the new tariffs on Chinese EVs will impact the U.S. auto industry?

• 😁 Very Positive
• 🙂 Positive
• 😐 No Impact
• 😕 Negative
• 😢 Very Negative