Run-out wrote:
Fat hurts wrote:
The EV subsidy is federal law. Tiny can't do squat about it. For GM, it runs out at the end of 2019 anyway.
It doesn't run out. It reduces to 50% on Jan 1. And then to 25% middle of next year. In 2020 it goes to 0%.
That's what I said. It "runs out" at the end of 2019. If I had said "phases out" it would have been a little more accurate.
There are efforts underway in congress to extend the EV credit. As the law stands, it punishes forward-thinking companies like GM and Tesla for making EV's that people actually want to buy. Now those two American companies are at a competitive disadvantage with foreign car makers who are just now entering the American EV market.
For example, if you buy a Hyundai Kona EV in January of 2020 you will get a $7500 tax credit. If you buy an EV from Tesla or GM you get nothing.
GM has been supporting the fix for the tax credit. They have also been pushing for nationwide zero-emission rules similar to what California has. I'd be willing to bet that GM would reopen some of those plants in exchange for favorable legislation. That's probably what Tiny talked about with GM CEO Mary Barra yesterday.
Either way, GM is moving forward full steam with its EV platforms. That's where the worldwide demand is going.