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Mon Dec 10, 2018, 11:05 AM

GM Fights To Retain Tax Credit Amid Trump Threat To Cut All Subsidies

This discussion thread was locked as off-topic by Omaha Steve (a host of the Latest Breaking News forum).

Source: Talking Points Memo

By RICHARD LARDNER
December 10, 2018 10:28 am

WASHINGTON (AP) — General Motors is fighting to retain a valuable tax credit for electric vehicles as the nation’s largest automaker contends with the political fallout triggered by its plans to shutter several U.S. factories and shed thousands of workers.

Preserving the $7,500 tax incentive for buyers is crucial for GM as the company pivots from internal combustion engines in favor of building cars powered by batteries or hydrogen fuel cells. Yet the layoffs and plant closings could imperil GM’s push to keep the incentive. It helps make plug-ins such as the $36,000 Chevy Bolt more affordable at a time when competition from other electric vehicle makers is heating up.

GM faces opposition from President Donald Trump and other Republicans who consider the credit a waste of taxpayer money and want it eliminated. Trump, who has pledged a manufacturing rebirth in the Midwest, reacted angrily to GM’s “transformation” announcement late last month, declaring that his administration was “looking at cutting all GM subsidies, including for electric cars.”

The company already is on the verge of being phased out of the tax credit program unless Congress changes a law that caps the break at 200,000 vehicles per manufacturer. Without the incentive, GM may be forced to cut the price of its electric cars to keep prospective customers from taking their business elsewhere, according to automotive industry experts.

As evidence of the credit’s importance to GM’s future, the automaker has expanded its lobbying footprint in Washington and even joined forces with two rivals, Tesla and Nissan, to call for 200,000-vehicle limit to be scrapped.

Read more: https://talkingpointsmemo.com/news/general-motors-fight-retain-tax-credit-electric-vehicles



Yeah instead of lets say raising the 200,000 car threshold to lets say 350,000 so more people can have the electric car from GM, so that they can sell ore cars,, and possibly open up plants , and get the tax credit, the "Individiual 1 asshole" and his republican libertarian accomplices want to gut it, while the foreign players can move in..............................


November 3, 2020 cannot get here fast enough.......................

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Reply GM Fights To Retain Tax Credit Amid Trump Threat To Cut All Subsidies (Original post)
turbinetree Dec 10 OP
SWBTATTReg Dec 10 #1
Adrahil Dec 10 #4
tinrobot Dec 10 #5
TomCADem Dec 10 #2
keithbvadu2 Dec 10 #3
JohnnyRingo Dec 10 #6
Omaha Steve Dec 10 #7

Response to turbinetree (Original post)

Mon Dec 10, 2018, 11:22 AM

1. Perhaps w/ better technology on the horizon w/ these electric vehicles, batteries and the like, ...

tax credits won't be needed anymore. Simply being a cheaper and better method of driving to/from point A to/from point B will be enough. Solar panel technology is getting this way, and despite what rump and his fossil fuel guzzling buddies say regarding the evils of clean energy, it will be here to stay no matter what they say or do.

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Response to SWBTATTReg (Reply #1)

Mon Dec 10, 2018, 12:31 PM

4. It's coming....

... but I'd argue we want electric vehicles to become the standard, and to do that, we have to make them cheaper than the gas alternative. WE also need to invest in generation infrastructure that is greener, of course.

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Response to SWBTATTReg (Reply #1)

Mon Dec 10, 2018, 01:14 PM

5. Removing tax credits simply pushes that horizon out further.

Electric cars are expensive to develop. Those expenses need to be amortized across many vehicles in order to get the price down.

That means EVs will not be cheap until they are produced in quantity. However, they can't sell in quantity until they are cheap. Tax credits helps get the industry over this obstacle.

Without tax credits, US development and adoption rates will slow. We could easily lose 3-5 years on the timeline. By then, we'll be left behind by China and Europe.


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Response to turbinetree (Original post)

Mon Dec 10, 2018, 11:59 AM

2. This Is a Trump Con for Oil Companies

Why not cut the Trump tax incentive for companies to relocate out of US? No, instead Trump is cutting the Obama tax credit for electric cars, which has worked to make cars like Bolt top sellers. Thus, this is just a pretext for helping oil companies again.

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Response to turbinetree (Original post)

Mon Dec 10, 2018, 12:21 PM

3. Can Donald stop the tax credit all by himself?

Doesn't he need Congress?

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Response to turbinetree (Original post)

Mon Dec 10, 2018, 01:32 PM

6. GM will lose little if the incentives are rescinded.

The company is already at 180,000 electric cars sold under the plan. If a customer comes into the showroom intent on buying a new car, they'll just buy a high profit gasoline powered car instead of an electric. The company is unlikely to lose a sale.

The real loser will be the environment and the winners are the oil companies. That's the reason for Trump wanting to phase out the incentives.

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Response to turbinetree (Original post)

Mon Dec 10, 2018, 02:07 PM

7. After a review by forum hosts...locking.

Analysis.

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