The U.S. House Ways & Means Committee has given its approval to a $3.5 trillion spending package that could give EV buyers as much as $12,500 in tax credits — but the final incentive program may loosen up a proposal that would reserve as much as $5,000 of those EV givebacks specifically for motorists purchasing battery-electric cars built in the U.S. by union workers.
Michigan Democrat Rep. Dan Kildee, left, told TheDetroitBureau.com today he’s willing to consider expanding the EV credits to some non-union automakers.
In an exclusive conversation, Michigan House Democrat Dan Kildee told TheDetroitBureau.com he would be open to a compromise that could include vehicles built in Canada, as well as BEVs produced by non-union automakers in the U.S., such as Toyota, where “workers are treated fairly and paid well.” Kildee said he did not see room to also include vehicles assembled in Mexico, however.
“We’re continuing to work on it,” Kildee said of the “Made in America” provision he crafted along with Michigan Democrat Sen. Debbie Stabenow.
Terms of the provision
The agreement, in current form, would extend the current, $7,500 in federal tax credits available to buyers of qualified battery-electric vehicles and plug-in hybrids. Among other things, it would eliminate the 200,000 vehicle sales threshold for individual manufacturers which, when reached, begins phasing out the incentives. General Motors and Tesla already have exceeded that cap and Nissan is coming up on that number.
Kildee said he couldn’t see any room for EVs built in Mexico, like the ID.Buzz will be, in the EV tax credit provision.
While there is broad support for that move, the Kildee/Stabenow proposal’s other provisions have generated heated controversy. For one thing, they would add another $2,000 for vehicles specifically assembled in the United States, and $500 for vehicles using American-made battery packs. Then, buyers could qualify for an additional $2,500 if the vehicle were built by union workers.
Those clauses would sharply limit which vehicles could get the maximum $12,500 giveback as many new EVs are scheduled to come in from Canada and Mexico, as well as Europe, South Korea, Japan and China. Meanwhile, only the Detroit Big Three automakers, General Motors, Ford and Stellantis, currently run union factories.
“That doesn’t seem fair,” Johan de Nysschen, the chief operating officer at the Volkswagen Group of America, told TheDetroitBureau.com this week.
For his part, de Nysschen said Congress should, at the least, cover vehicles made within the three countries comprising the USMCA, the successor to NAFTA. VW, he said, adjusted its regional production plans to comply with the updated trade agreement. Currently, it plans to import the ID.Buzz, an all-electric successor to the iconic Microbus, from a plant in Puebla, Mexico.
Volkswagen of America COO Johan de Nysschen said the company could shift more EV production to the U.S. if the incentives were revised.
Honda, meanwhile, said the Made in America provision “discriminates among EVs made by hard-working American auto workers based simply on whether they belong to a union.”
Toyota has also come out strongly against the Kildee/Stabenow provision.
Changes are possible
Asked if he could foresee changes to the plan, Kildee said he was somewhat flexible and looking at other proposals.
Among other things, that could bring in Canadian-made EVs. Auto factories north of the border are mostly represented by Unifor, the automotive equivalent of America’s United Auto Workers union, Kildee said, as he began a tour of Ford Motor Co.’s new Electric Vehicle Center in Dearborn, Michigan Thursday.
Kildee said he has been discussing the possibility of expanding the provision to include non-union companies with Congresswoman Terri Sewell. The Alabama Republican’s district includes a new Toyota plant. Most of the foreign-owned auto assembly plants in the U.S. are based in Southern states that often have right-to-work laws in place.
Kildee said he could see including Canadian made EVs due to the involvement of Unifor.
But the Michigan Democrat showed no flexibility when asked about including Mexico in the incentive program. That country is “so far away from having real labor unions” offering good wages and benefits and real worker representation, he stressed, that “I don’t know how they can get in(to)” the Made in America proposal.
There have been other objections raised to the idea of increasing EV incentives. West Virginia’s Republican Congresswoman Carol Miller tweeted that it seems “hard to imagine how giving a tax break of $12,500 to someone buying a $74,000 electric vehicle is a way to help working class workers.”
A proposal that would have eliminated EV incentives for buyers making more than $75,000 a year — or $150,000 for couples — was rejected by the Ways & Means Committee.
Kildee said he believes some version of his and Stabenow’s proposal eventually will be approved by the full House, as well as the Senate. It would then have to be signed into law by President Joe Biden, himself a strong EV proponent. But Biden has also expressed strong interest in seeing U.S. automakers rewarded in a new incentive plan, especially those with union workers.
“What do environmental groups, automakers and workers have in common? They all support my bill to expand electric vehicle production in the U.S. to help create good-paying jobs and reduce emissions,” Kildee said in a tweet.
Mazda’s debuted its first battery-electric model, the 2022 MX-30 crossover. There are many more EVs coming in the next year.
If you’re looking to buy a battery-electric vehicle today, your options are quite limited. But that won’t be the case for long. By the end of next year, automakers plan to add more than three dozen new BEVs – and that doesn’t include variants of existing models, like the single motor versions of the Volkswagen ID.4 and Polestar 2 soon being added.
In Part I we looked at everything from the Audi A6 e-tron to the Lucid Air. Now, let’s look at what’s coming from the back half of the Alphabet.
Mercedes-Benz EQA
Mazda MX-30. The little Japanese automaker has been slow to embrace electrification, hoping that its SkyActiv technology would let it meet increasingly rigid emissions standards. That all changes with the launch of the Mazda MX-30, its first pure battery-electric vehicle. How well is will fare in a market seeking longer and longer range is uncertain, the little SUV only fitted with a 32 kWh battery pack that can barely deliver 100 miles range. But, after waffling a bit, Mazda now expects to offer an optional rotary engine range extender to give the MX-30, with its 143-hp motor, more utility.
Mercedes-Benz EQB
Mercedes-Benz EQA. The German luxury brand might have been slow to embrace battery power but it has truly plugged in, showing off nearly a half-dozen concepts and production models at the recent Munich Motor Show. The family soon will include the EQA. That will become the smallest, all-electric Mercedes SUV when it comes to market next year. Final details for the American model haven’t been released but look for around 250 miles of range from its all-wheel-drive system. Mercedes claims it had more than 20,000 advance orders in hand by the time EQA debuted last February.
Mercedes-Benz EQE
Mercedes-Benz EQB. One of the Munich launches, it will roughly match the existing Mercedes GLB crossover in size. By moving batteries and motors below the load floor, the CUV will have a bit more room for up to seven passengers. Two all-wheel-drive versions will be available at launch early next year, with the EQB 4Matic promising up to 416 km, or 262 miles of range, as well as a sporty 288 horsepower. The EQB 300 4Matic will make about 225 horsepower and yield roughly the same range from its 66.5 kWh battery pack. Those are European numbers, so U.S. range will likely be less.
Mercedes-Benz EQG
Mercedes-Benz EQE. The 2023 EQE will become the second model line to use the automaker’s new EVA2 electric vehicle architecture, following the launch of the flagship EQS model. And like the bigger sedan, the EQE will adopt a distinctive “one-bow” design language meant to set it apart from traditional Mercedes sedans. The all-electric answer to the classic E-Class will, in typical Mercedes fashion, offer two variants at launch, the EQE 350 with 288 hp, as well as “another model” that wasn’t identified during the sedan’s Munich debut.
Mercedes-Benz EQS
Mercedes-Benz EQG. What we saw in Munich was labeled a “concept” vehicle. But that’s only for the time being. We can expect to see a production version of the battery-powered SUV to start rolling out in production form by late next year. Like the classic G-Class, the show SUV got an independent suspension on the front axle, but retained a rigid torsion beam axle in back. This will be no soft-roader. Expect the production model to retain all the capabilities of the “Gelandewagen.” By using four motors, one for each wheel, the automaker promises “unique driving characteristics both on- and off-road.”
Nissan Ariya
Mercedes-Benz EQS. For Americans, the all-electric alternative to the S-Class becomes Mercedes’ first long-range BEV this year. The sedan features a new “one-bow” design language that will be one of the auto world’s most aerodynamic designs. Inside, it gets an equally radical design anchored by the new pillar-to-pillar Hyperscreen. Add great performance and projected range of 770 kilometers, or nearly 480 miles, per charge, and the EQS takes dead aim at the Tesla Model S. The Munich show, meanwhile, saw the debut of two variants, the ultra-exclusive EQS Maybach and the high performance EQS AMG.
Porsche Macan EV
Nissan Ariya. The Japanese automaker was the first to launch a mainstream battery-electric vehicle a decade ago — the Leaf — but it has dragged its feet adding more to the line-up. And sales of the Ariya SUV now have been delayed due to the semiconductor shortage. But it should reach showrooms by early in 2022. Ariya rides on a flexible new architecture, and it gets major upgrades to the drivetrain in the latest-generation Leaf. Several variants will be offered, up to a 380-hp AWD model, and range should top 300 miles with an optional pack. The semi-autonomous Pro Pilot 2.0 system also will be available.
Rivian R1S
Porsche Macan EV. Porsche might once have seemed like the last brand to go electric but it has given a bear hug to battery power, starting with the Taycan, and with an assortment of other BEVs to follow. That next will include a version of the Macan SUV which, in gas form, is about to get a complete makeover. As with sibling brand Audi, Porsche will offer both ICE and BEV versions of key models. But the Macan EV actually will ride on its own, skateboard architecture, the Premium Platform Electric, or PPE. (Which it will share with Audi.) Expect Porsche-like performance and extremely fast charging.
Rivian R1T
Rivian R1S. This startup is seen as one of the most likely to carve out a solid niche in the automotive market, thanks to some hefty funding an extensive orders for all-electric delivery vans from customers like Amazon Prime. Rivian’s first entry into the retail market will come with a pair of electric trucks, including the R1S sport-utility vehicle. It will offer seating for up to seven, range of anywhere from 230 to 400 miles, depending on the optional battery pack, the ability to tow 7,700 pounds, and sports car like speed. The debut price is expected to be around $73,000.
Subaru Solterra
Rivian R1T. The nascent EV maker’s pickup will be first to market, the R1T Launch Edition debuting this month. That will be a premium trim package, with more mainstream versions to follow by early in 2022. As is the norm in the full-size pickup segment, Rivian will offer a broad range of configurations. That includes battery packs of anywhere from 105 to 180 kWh, as well as various motor layouts. Models with the biggest pack, Rivian claims, will hit 60 in just 3 seconds. The R1T will best the Rivian SUV in towing, as it’s rated at up to 11,000 pounds. It also plans to offer a semi-autonomous alternative to Tesla’s Autopilot.
Tesla Cybertruck
Subaru Solterra. The little Japanese brand has long teased the idea of going electric with various concept vehicles. It’s finally getting there, having finally revealed the production Solterra last month. Subaru still hasn’t offered much in the way of drivetrain details, however. But, like its design, it’s expected the underlying technology will stray little from what Toyota has coming next year in the form of its first long-range BEV, the bZ4X. The two automakers have shown how well they can work together with the latest-generation Toyota GR 86 and Subaru BRZ sports car.
Toyota bZ4X
Tesla Cybertruck. As has been the unfortunate norm for the California upstart, Tesla has repeatedly delayed the launch of its first pickup until at least early next year. That means it will follow behind both GMC’s Hummer, Rivian’s R1T, and possibly even the Ford F-150 Lightning and Bollinger B1. That and its radical styling led to Elon Musk suggesting the Cybertruck could be a failure. But that seems unlikely considering Tesla took deposits from more than 200,000 potential customers within days of Cybertruck’s debut — and some observers believe the figure now stands at more than 1 million.
Volkswagen ID.Buzz
Toyota bZ4X. Officially, the electric SUV Toyota revealed in June was just a prototype — but company officials are doing little to hide the fact that a production version of the new bZ4X Concept is heading to U.S. showrooms, possibly by next year. Details are sparse, but it shares underpinnings and drive tech with the Subaru Solterra. Range is promised at more than 250 miles, performance as “sporty.” For Toyota, the bZ4X will serve as just the entry point. It says there will be seven all-electric bZ, or “Beyond Zero,” models, along with eight other BEVs.
Volkswagen ID.Space Vizzion
Volkswagen ID.Buzz. For many years, VW has attempted to come up with a replacement for its iconic Microbus. It finally has the right product — albeit one drawing power from a battery pack. While the ID.Buzz has repeatedly been delayed, it is widely expected to land in U.S. showrooms either next year or in 2023. Designed as an eight seater, it will share the same MEB platform and drivetrain system as the ID.4 electric SUV. While the final name could change, VW expects to assemble the battery-powered Microbus in Mexico.
Volvo C40 Recharge
Volkswagen ID.Space Vizzion. VW has launched what is arguably the world’s most expansive — and expensive — battery-car program, investing $86 billion through the end of the decade. It already has the ID.4 on sale in the U.S. and CEO Herbert Diess recently announced that VW will introduce more BEVs in the U.S. than originally planned. That could include both the ID.Life concept introduced at the Munch Motor Show, as well as the ID.Space Vizzion revealed in concept form at the LA Auto Show in 2019. More wagon than crossover, it is widely expected to reach market next year. Look for 300 miles of range.
Volvo C40 Recharge. Volvo brought out its first long-range electric in the form of the XC40 crossover. It’s now preparing to add a second variant in the form of the C40. In a break with its normal nomenclature, the BEV will opt for a sportback, rather than coupe body style. Don’t expect major powertrain changes, the C40 Recharge expected to be powered by a 402-hp, twin motor drive system. In the XC40, it runs for up to 208 miles per charge using a 75-kWh battery pack.
Volvo XC90 Replacement. You can be all but certain this won’t be the electric model’s actual name. While it’s set to replace the Swedish brand’s SUV flagship, Volvo’s CEO recently confided that future models will switch away from their alphanumeric format. “Calling that just a new XC90 would be wrong because this is the really a first of its kind,” explained CEO Håkan Samuelsson. Whatever it’s called, look for its to use a new and larger platform than the C40 Recharge, one specifically designed for Volvo’s largest products. Also expect it to get more range than the current battery models.
Lordstown Motors Chief Executive Officer Steve Burns has resigned from the struggling electric vehicle startup, as has Chief Financial Officer Julio Rodriguez.
Lordstown Motors CEO Steve Burns resigned amidst a massive cash crunch that threatens the nascent EV maker’s survival.
The departures come just days after the Ohio-based company warned there was “substantial doubt” it would have enough money to remain in business for the next year. The company also faces an investigation by the U.S. Securities and Exchange Commission into claims that it misled investors.
Lordstown said Monday Angela Strand, its lead independent director, was appointed to serve as its executive chairwoman. A search will now begin for a permanent replacement for Burns. Separately, Becky Roof was named interim finance chief for the company.
“We remain committed to delivering on our production and commercialization objectives, holding ourselves to the highest standards of operation and performance and creating value for shareholders,” Strand said in a statement. “Along with the management team, I will continue to work closely with them and the Board to execute on Lordstown’s vision for the future of electrified transportation.”
Drawing from history to kick off the future
The new Endurance was supposed begin production at the end of September getting to full speed by the end of the year. That’s in serious doubt now.
Lordstown is one of numerous new companies targeting the electric vehicle sector. The company draws its name from the Ohio town in which its factory is based. It acquired the plant from General Motors, which once produced small cars like the Chevrolet Cruze there.
Lordstown’s goal has been to produce an all-electric pickup using novel in-wheel “hub” motors. It was emphasizing sales to fleets and, until a few months ago, claimed to have lined up thousands of advance orders for the vehicle, named Endurance.
It used its claimed success to help pull together financing and a deal to go public as part of a merger with DiamondPeak Holdings, a special purpose acquisition company, or SPAC. At peak, its stock price surged to $31.80 a share. It closed Friday at $11.41.
Shares dropped in aftermarket trading after word of the resignations was released.
It all began with a report
Things began to crumble in March when the short-seller group, Hindenburg Research released a report questioning Lordstown’s optimistic sales projections. According to Hindenburg, the “fake” orders were used to help Lordstown raise capital. It has since come out that most, if not all, of the automaker’s sales claims are questionable.
Lordstown is engaged in beta testing its production line with the first of 57 pre-production models to come soon.
The SEC probe was announced shortly after the study was released. TheDetroitBureau.com has spoken to several of the companies Lordstown claimed were placing orders. It was told by several that they were, in fact, planning to purchase some Endurance pickups but had not yet finalized plans.
Lordstown has repeatedly said it plans to begin production of the Endurance this year — though Hindenburg’s report alleged that this wouldn’t happen for at least several years. What seems clear now is that the company doesn’t have the money to follow through.
“Our ability to continue as a going concern is dependent on our ability to complete the development of our electric vehicles, obtain regulatory approval, begin commercial scale production and launch the sale of such vehicles,” it said in a 10Q filing with the SEC last week.
This is the second automotive startup that the short-seller has targeted during the last year. It initially took aim at Nikola Motors, an Arizona-based company planning to bring hydrogen-powered trucks to market. After alleging he misled investors, Nikola’s CEO and founder Trevor Milton also resigned.
Despite the management shakeup, Lordstown said it still plans to participate in a presentation to the Detroit Automotive Press Association this week, as well as meeting of investors at its Ohio plant next week.
New player in the electric vehicle market Canoo Inc. is now officially taking orders for the company’s lifestyle, Multi-Purpose Delivery Vehicle (MPDV) and pickup truck offerings.
According to the company, potential customers can reserve one of Canoo’s vehicles for $100 by going online to.
Canoo’s lifestyle vehicle will be the first of the trio to market in 2022.
“It’s no longer a question of whether America will go EV — but when. Our line-up is future-forward and succeeds where others have struggled: Giving people the EV that works smarter for them at a price that can work for their budgets. That’s why we are designing for flexible use cases and focused on productivity solutions,” said Tony Aquila, Chairman & CEO Canoo Inc.
“We are designing for people who work hard, play hard and need something reliable, that will last and give you value. We’re for the 99% not the 1%. Our vehicle line-up is built for the backbone of America – to give you value so you can work smarter.”
Portfolio includes vehicles for work and play
The Canoo vehicles that can now be reserved break down into three categories: Lifestyle, MDPV and Pickup.
It is designed to be cabin forward to maximize interior space and function, with exportable power and customization options — all on a small footprint. It will come standard with multiple car seat anchor points and have enough space for five.
Nascent EV maker Canoo is the latest company to get into the electric delivery van segment with its new MPDV.
It will have an interior volume of just over 188 cubic feet, which is about the same as a large SUV, while the vehicle’s overall footprint and length will be in line with that of a Prius.
Its electric drivetrain puts out 300 horsepower and 332 pound-feet of peak motor torque and 250 miles of battery range. Final pricing will be announced in the new few months.
It offers efficiency and class-leading cargo volumes, which will help businesses to reinvest and thrive, officials claim. This is meant to make delivery vehicle a great option for independent contractors, tradespeople, utilities and service technicians.
Bi-directional onboard charging maximizes functionality and turns the vehicle into a power plant for equipment and tools that can be powered up even at remote destinations.
Canoo didn’t want to be left out of the massive pickup truck segment, offing this unnamed and unusual offering.
The vehicle’s design is meant to accommodate workstations to store and access a variety of devices, products and equipment. Depending on the configuration, anticipated specifications include up to 200 hp and 236 lb-ft of peak motor torque with up to 250 miles of battery range.
Hot pickup truck market not forgotten
And no car company EV or otherwise can get along in the U.S. market without a pickup truck. The Canoo truck, like its stablemates, is fully electric with a cabin-forward design as well as steer-by-wire technology and proprietary multi-purpose platform architecture.
The truck will also have an extendable flatbed designed to compete with other pickup trucks on a smaller footprint. This will make it easier to maneuver and more convenient to drive. These are important features for people who will use the truck for things like work on construction sites.
It will also have exportable power, advanced exterior lighting, fold-down worktable and cargo storage, flip-down side tables, side step and storage, an extendable bed with space dividers and multi-accessory charge port.
Specs include dual or rear motor configurations, with 500-plus hp and 550 lb.-ft. of torque with dual motors, vehicle payload capacity of 1800 pounds and at least 200 miles of battery range.
