Filed under: EV/Plug-in, Hybrid, Legislation and Policy, Green Daily, USA
Auto industry responses to the bailout bill; what do you think?
When the U.S. Congress passed H.R. 1424 and President Bush signed it into law today, not everyone was paying attention to the part about plug-in vehicles. Sure, this got a little play - and green car sites like ours were on it - but what's a few $7,500 tax credits in a $700 billion bill? Still, there are a lot of parts to the bill (read one take here) to digest and we're happy to explore the green car-related details a bit.
If you want to read the language in the bill yourself, you can find the full text here (do a text search for "plug" to find the applicable PHEV part of the law, Section 205). As meme noted earlier today, the language now refers to "plug-in electric drive motor vehicle" instead of the "passenger automobiles," which might help companies like Aptera. We know that Chrysler yesterday gave its support for the legislation and today the Electric Drive Transportation Association (EDTA) gave strong vocal support to the bill's passage. You can read both of the official statements after the jump.
When you read the bill, don't miss Section 306 (regarding smart meters) and Section 103 (extension of solar and fuel cell tax credits). I'm quite interested in how the AutoblogGreen community feels about this bill.
[Source: EDTA, Chrysler, Govtrack]
Official Statements:
EDTA Applauds Passage of Electric Drive Incentives in H.R. 1424: Emergency Economic Stabilization Act of 2008
Washington, DC-October 3, 2008-The Electric Drive Transportation Association (EDTA), the trade association accelerating battery, hybrid, plug-in, and fuel cell electric drive technologies and infrastructure, commends Congressional leaders for action on H.R. 1424, the Emergency Economic Stabilization Act of 2008. Included in the legislation is an important credit for purchase of plug-in electric drive vehicles. The bill also supports investment in fuel cells, electric recharging property, smart meters and grid modernization.
"EDTA is extremely pleased that the bill passed today includes incentives to reduce our dependence on oil with electric drive transportation," says EDTA President Brian Wynne. "Congress has provided the paving stones for a comprehensive electric drive transportation policy, and we look forward to working with them and the new Administration next year to build on this path to clean, affordable and secure transportation."
About the Plug-in Electric Drive Credit:
The energy package establishes a credit for purchase of plug-in electric drive vehicles, which will help consumers and manufacturers to grow the marketplace for clean, efficient cars and trucks.
Credit Amount/Criteria: Plug-in electric drive vehicles with batteries of at least 4 kWh qualify for a $2,500 credit. An additional $417 is provided for each additional kWh, up to $7,500 for vehicles up to 10, 000 lbs. Vehicles up to 14,000 lbs qualify for a $10,000 credit. Vehicles between 14,000 and 26,000 lbs qualify for a $12,500 credit. Vehicles over 26,000 lbs qualify for a $15,000 credit.
Phase-out: The credit begins to phase out after 250,000 qualifying vehicles are sold in the U.S.
Expiration: The credit expires at the end of 2014.
AMT: The credit is available against the alternative minimum tax.
About EDTA:
The Electric Drive Transportation Association (EDTA) is the trade association representing battery, plug-in, hybrid and fuel cell electric drive technologies and infrastructure. EDTA conducts public policy advocacy, education, industry networking, and international conferences. EDTA's membership includes automotive and other equipment manufacturers, energy companies, technology developers, component suppliers, and government agencies. For more information about EDTA and its members, visit www.electricdrive.org.
Chrysler LLC Media Statement Regarding Support of H.R. 1424, the Emergency Economic Stabilization Act of 2008, attributed to Robert Nardelli, Chairman and CEO:
AUBURN HILLS, Mich., Oct. 2 /PRNewswire/ -- "Chrysler LLC strongly supports the passage of H.R. 1424, the Emergency Economic Stabilization Act of 2008 which is an important step in stabilizing our credit markets and the overall economy. As a result of the economic contraction and illiquidity in the credit markets, the ability of domestic manufacturers to finance new motor vehicle sales for consumers has been substantially weakened. To stimulate car and truck sales, Congress should pass the Financial Rescue Plan."
Reader Comments (Page 1 of 1)
Paul 12:29AM (10/04/2008)
The bad: Things like this shouldn't be combined and should be considered on their individual merits.
The good: I now have a PHEV credit to consider when buying a new car in a couple years
The really good: In Washington state they are waiving the sales tax on PHEV's (and some other fuel efficient cars) for 2 years. The combination of the PHEV credit and the sales tax waiver (good for ~9% here in WA) means my government really wants me to get a PHEV. Thats great because I'm hoping for a Volt in 2010.
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adagan 3:12AM (10/04/2008)
Does this apply to tesla?
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tankd0g 9:01AM (10/04/2008)
I think there should be a rebate on crack and whores also, while we're giving rebates on things that are going to be in high demand we might as well cover everything.
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Tim 9:28AM (10/04/2008)
sizzle...sizzle...sizzle...
Sell the sizzle, not the high cholesterol PORK that is sure to give Americana financial heart-attack.
Congress never cooked pork that they did NOT shove down OUR throats.
$ TRILLIONS in new pork & pork by products every session.
BOTH McCain (NeoCon-Fascist) & Obama (Democrat-Socialist) ignore their Constitutional Oath & embrace this Federal Totalitarianism!
Want REAL change? YOU Change!
Vote for ANY 3rd party & ARM YOURSELVES!
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stevefazek 12:05PM (10/04/2008)
god this bill makes me sick. Pretty much investors want to abandon investing in mortgages good and bad..
After all these security packages were a mic of perfect, average, and bad credit mortgages a percentage of the bad credit ones collapsed due to foreclosure, after all the investors tried to maximize profits by getting the mortgage brokers to jack up the APR to 9-12%
The foreclosures did kill the profitability of these packages, but its was the ridicules management fees those fuckers charges with them. They packages them self wernt losing money it was the fact some of them stopped making money so everyone dumped them.
When no one wants to buy something the price you can sell it for collapses.
Its total paper chasing bullshit that has been going on for 10 years.
Those idiots idea of long term investment is 90 days "to the next quarter"
hell if the goverment just purchased the small % of horrible loans and for ones that lost value it would of cost alot less money then buying the whole packages.
the fuckers even got to keep their golden parachutes
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messagerelay 2:45PM (10/06/2008)
This auto manufacturer bailout loan crap makes me not want to vote. YES, it's a bailout and a risk. The risk is, they will probably use the money unwisely just like before and not make a profit. Please tell me, how do pay back a loan without profit? And who made the calculated risk to do this? The big three auto mfrs should be allowed to fold. I highly believe the UNION is the main cause of their failure. Think about it. Why should a person with no college education, some don’t even have High Scool ed, make $29/hr for mounting hardware on hardware? Tires, seats etc… I have seen people “Stage” parts like screws and washers and gaskets and push buttons that get paid over $24/hr. Give me a break. No wonder they are losing money. They have to support the morons in their work force. A high scool student can do this for federal min wage!
Most everything is automated and the unhealthy stuff is done by robots. That’s ridiculous. If one were to vistt one of their plants and audit this you will see it’s true. I have been in manufacturing for 10 years. Positions get a pay increas because of tenure? WTF is that. After 5 years your still an idiot manual robot doing the same thing you got paid for when it was minimum wage! The big three should fold and the American people should not have to suffer through their reign of OPEC Support terror.
DROP THE UNION! Or beteer yet, shut down the plant and reopen WITHOUT THE UNION! Sure, promote "Buy American". I'll spend my money on some good ol Amercian fun like go see a Baseball game and scarff down 8 hotdogs and a pitcher of beer before I spend a boatload of money on an american car just to help support the afformentioned idiots employed there. Don't get me wrong, not all are itiots, just the floor rats. If it weren't for the UAW, US auto prices would be more competitive and affordable to Americans.
Let’s take a look at this PHEV incentive that was passed also. To take advantage of this incentive, the vehicle you purchase must have soo much battery in it, can’t remember the specs but it was 3x more than any current foreign hybrid uses. Ironically if you look at any vehicles that can qualify, only the Chevy Volt and other US hybrid wannabe vehicles can qualify. Why? Because they are soo inefficient they require that much battery to run. So basically these US autos can not sell themselves and the big 3 need the govt to try and make the deal sweeter. For this reason I will never purchase a US big 3 vehicle again. The American people CAN survive even if the big 3 auto are gone. Need a car? There’s others to choose from? Lose your job because the plant failed to foresee the coming inevitable world change and they blindly charged on building Bradley Tank SUV’s? No problem, other auto manufacturers exist here in the US and when competition is gone from the big 3, guess what, manufacturing increases elsewhere in the US. Incentives for this PHEV bill should go to the vehicles that ARE PHEV. That should be the criterea. Then the consumers can decide WHAT PHEV they want to buy. So, guess what, they will most likely not buy a Chevy Volt and I highly recommend against the volt. This vehicle as well as any other attempts for the big 3 to sell as a hybrid / PHEV is just like their predecessors. They were hogs on gas back then, and in this generation they are hogs on batteries! Nothing has changed and they learned nothing. Tell me again why we are giving these huge loans to the same people that enticed people and sold Americans these poor excuses for a vehicle? I hope they all go under. This will open the doors to the small entrepreneurs like the “AC Propulsion”, “Phoenix Motors and “Hybrid Technologies” or “Black Bay Technologies”. Don't get me wrong, the Volt is an outstanding concept. I just don't agree with their business practices therefore they will never get my bussiness again or support. Here's proof Ford can produce a high mileage car: http://www.carpages.co.uk/guide/ford/ford-fiesta-studio-1.25-3dr.asp AND HERE:http://www.businessweek.com/magazine/content/08_37/b4099060491065.htm?chan=autos_autos+--+lifestyle+subindex+page_top+stories, funny they don't offer it here in the US, we don't deserve it?
Basically IF the big 3 took what “Hybrid Technologies” is doing and refined the process, expand their facility, buy them out and ensure product reliability to “Their” standard then I believe the big 3 can make a come back. Think about it. This little comapny, Hybrid Technologies, takes already built ICE vehicles and convert them to 100% Electric in about 4 days. You get a range of 100+ miles. Good for commute and for soccer practices and runs to the grocery store, run to fast food for the 3 kids and get a beer. That is a perfect idea. So there, I just retooled the big three in less than an hour, my bill is $50Billion please.
Of course this will not happen because Detroit has this “It wasn’t my idea so I wont bother with it” persona. Sure they’ll probably get the loan. How’s it feel to be left out in the cold for those Americans who lost their homes to bad loans? Govt will bail big auto but leave Americans to fend for themselves and at the same time pay for this friggin mess. Yes, it is true that “We weren’t pushing these larger vehicles, we were just building what our customers wanted,” Mulally said….” (Quote from: http://afp.google.com/article/ALeqM5h4EahO3VBl2HqNDP58DrifgZ_RlQ) but you continued and did nothing to “Adapt” to the market, Just like the dinosaurs, and guess what, the Asteroid of OPEC hit and you cant “Adapt”! Hey Detroit, “Retool THIS!”, bastards.
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