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Old 4th December 2018, 18:08   #1
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Default USA: EV car subsidies to end by 2020/21

According to a media report, the US government is pulling out subsidies to the tune of US$ 2,500-7,500 granted to electric vehicles (EVs). Apart from EVs, subsidies for other items including renewable energy sources would also be removed.

Buyers of electric vehicles and hybrid cars are eligible for a subsidy from the government. The total number of vehicles from a single manufacturer that can claim subsidy is 200,000, after which the subsidies are phased out. Tesla is the only carmaker to have surpassed this figure.

General Motors (GM) is expecting to reach the 200,000 mark by the end of 2018, after which the subsidies gradually diminish until they are phased out in 2020. Other carmakers are not expected to reach this number anytime soon.

Carmakers like GM, Nissan and Tesla have lobbied to lift the cap on the total vehicles.

USA: EV car subsidies to end by 2020/21-tesla-s.jpeg

Source: Autoblog

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Last edited by blackwasp : 4th December 2018 at 18:11.
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Old 4th December 2018, 21:20   #2
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Originally Posted by blackwasp View Post
According to a media report, the US government is pulling out subsidies to the tune of US$ 2,500-7,500 granted to electric vehicles (EVs).
Total BS. Trump WANTS to remove subsidies. He's about to find out that there are some things an executive order can't do.

From Jalop:

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What’s even more unlikely is that Congress even considers such a significant measure. Automakers like Tesla, Ford, and GM have recently launched an effort to convince Congress to expand the tax credit beyond the current cap of 200,000 vehicles sold. Tesla already hit that mark, and General Motors is fast approaching it, meaning the credit will be cut in half every six months for car buyers, until it disappears entirely.
The automotive lobby has a strong say in that and they won't let this happen. While we're seeing new faces in the Congress and the Senate who are less likely to bow down to their donors, there's still a large number of lawmakers on both sides of the aisle who are still accepting campaign donations from auto majors.

From the auto industry perspective, the traditional ones hate Tesla because they can't compete with them. Tesla have almost digested the 7.5k subsidies while others are just about to start benefitting from them. Even with the rebate on their side, they'll have a hard time challenging Tesla, let alone without it. So, the only choice is to join hands with Tesla and that's what they've done.

The only variable I see that could make it go the Trump way is the part supplier lobby who would like to prevent any change to the way things are.

Last edited by GTO : 6th December 2018 at 07:23. Reason: Second last paragraph was entirely political (against our rules). Deleting
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Old 5th December 2018, 08:51   #3
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Default Re: USA: EV car subsidies to end by 2020/21

If this is true then good!!. If your entire business model depends upon kickbacks and subsidies from government then you don't have one in the first place. And if removing these subsidies means these businesses will go broke then that is what must happen. In fact it did happen in Hong Kong and Denmark if I am not mistaken. Tesla sales fell down significantly when the government refused them subsidies. No private company should be getting a dime of tax payer money for anything.
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Old 5th December 2018, 09:18   #4
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Default Re: USA: EV car subsidies to end by 2020/21

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Originally Posted by nakul0888 View Post
If this is true then good!!. If your entire business model depends upon kickbacks and subsidies from government then you don't have one in the first place. And if removing these subsidies means these businesses will go broke then that is what must happen. In fact it did happen in Hong Kong and Denmark if I am not mistaken. Tesla sales fell down significantly when the government refused them subsidies. No private company should be getting a dime of tax payer money for anything.
This is actually will be an advantage for companies like Tesla, GM and Nissan in USA. Current subsidy system works against the companies like Tesla who moved the EV industry forward as it subsidizes 200,000 vehicles per car maker no matter when they start making. Initially the development and battery costs were so high and the likes of Tesla, GM and Nissan were forced to spend lot of money. Over the last 8 years the battery costs down drastically and now everyone is able to make EVs at much lower price. Those laggards also will be eligible for same 200,000 vehicles despite not doing much to help the EV industry forward under current system.

Tesla already used their quota of 200,000 vehicles and GM by end of this quarter or Q1 2019. Nissan will complete their quota in the next 1-2 years. So all these 3 companies will have level playing field with subsidy removal with the likes of Audi, Jaguar, Hyunda/Kia, VW, Porsche, etc...
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