Latest news with #PrologueEV
Miami Herald
2 days ago
- Automotive
- Miami Herald
Electric vehicle sales surge as end of tax credits nears
Michael MacGillivray had planned for months to replace his gas-powered Ford Bronco with an electric vehicle. As a certified public accountant, he followed congressional debate over President Donald Trump's sprawling spending and tax legislation, which would end $7,500 tax credits for some first-time EV buyers. When Trump signed the legislation into law July 4, MacGillivray knew he needed to act. "I was leaning toward the EV regardless, but the tax credit pushed me over the edge," MacGillivray told The Detroit News while driving his new Tesla Model Y back from a road trip to Toronto. The 25-year-old Ann Arbor resident is among a surge of what analysts call "fence sitters" buying EVs in the final weeks before the tax credit expires Sept. 30. And automakers are taking advantage of the short-term boost to clear inventory in anticipation of at least a temporary drop in interest once the credits end. Hyundai's electrified sales jumped 50% compared to July 2024. Combined sales of electrified Toyota and Lexus models rose 6.7% to 90,426. July was General Motors Co.'s best-ever month for its electrified fleet, according to the company, which said it sold more than 19,000 EVs, a 115% increase from July 2024. "Everybody wants them right now before the tax credits go away," said Walter Tutak, dealer trade inventory manager at Champion-Hargreaves Chevrolet dealership in Royal Oak. Honda Motor Co. reaped a record July in electrified sales, in part because "the impending expiration of EV tax credits led some buyers to pull ahead across the industry," Jessika Laudermilk, assistant vice president of U.S. sales at Honda, said in an email. The automaker's Prologue EV recorded 6,318 sales in July, up 82.7% year over year. "We expect to see this continuing in August and September," Laudermilk said. Automakers are not required to report monthly sales, and Tesla Inc. did not disclose data in response to a Detroit News inquiry. Stellantis NV, which also did not report July sales data, is one of many automakers offering aggressive incentives on both EVs and plug-in hybrids, along with prominent language on its brand sites trying to spur customers into action: "Get your EV incentive while you can!" Jeep says on its website in a promotion for the all-electric Wagoneer S. "Brands are going crazy with incentives, and it's good for consumers," said Lauren Fix, CEO of the consulting firm Automotive Aspects. Auto reviewer Anton Wahlman, a former technology analyst, said the next few weeks will be "an inventory cleaning event." Sam Fiorani, industry analyst at AutoForecast Solutions, said manufacturers will compensate for the loss of the EV tax credit with their own incentives to keep prices stable: "It's unlikely that you'll see the prices drop, but you will see leasing deals or customer rebates." Analysts expect manufacturers to further scale back production of EVs to match limited interest among buyers, especially as Trump works to remove federal emissions requirements that pressured companies to make those models regardless of market demand. Stellantis has already started dialing back production of its electrified offerings, with dealers prevented from ordering several models. "In line with our retail priorities and the plans shared with our dealer network, we are working to ensure our production plan is in line with consumer demand," according to a statement from the company. After the industry more broadly scales down production over the course of several years, "they're only going to sell some of them if they can make money on them," Wahlman said. "So there will be far fewer models and they will be priced much higher," he said. "In the midterm, you're going to see EVs disappearing from the marketplace," Fiorani added. "Currently, they're encouraged by emissions (regulations) and by the federal incentives, but once those two things go away, then there's no real incentive for a manufacturer to add a new model to the lineup in a market that's already crowded with EVs." More: Jeep will bring back Hemi V-8 in more models, brand's CEO says Automakers say they remain committed to EVs in the long run, although many are shifting investments toward hybrids and gas-powered, money-making trucks and SUVs. "Toyota's commitment to vehicle electrification is just one important element of its effort to help the world build a zero-carbon future," Toyota Motor North America spokesperson Derrick Justin Brown said in an email. "Through the current industry shifts, including those around EV tax credits, that commitment remains strong, and there are no current plans to alter our approach." Laudermilk said Honda views electrification as "a marathon, not a sprint." "We remain focused on expanding our electrified lineup, utilizing our flexible manufacturing to produce ICE, hybrid-electric and battery electric models on the same production lines to meet the needs of our customers," Laudermilk said. GM executives have said the company will continue to pursue EV innovations, even as it beefs up its gas-powered fleet with investments at Orion Assembly in Michigan, Tonawanda Propulsion in New York and Toledo Propulsion Systems in Ohio. Ford Motor Co. last year canceled plans to produce a three-row, battery-powered SUV at its Oakville Assembly Complex in Ontario, planning instead to build gas-powered Super Duty pickups there starting next year. And the Dearborn automaker this month delayed the launch of its next-generation electric van and electric full-size pickup, though it also said it would invest $2 billion to build a midsize electric pickup at Louisville Assembly. Stellantis this summer announced plans to bring back 5.7-liter Hemi V-8 engines in Jeep SUVs and Ram light-duty pickups as Trump and a GOP-controlled Congress slashed emission and fuel economy standards that had forced the engine's slow demise in the first place. Despite the more favorable regulatory environment for gas engines, Fiorani said automakers neglect electrification at their peril. "A good manufacturer will see that this is the wave of the future and will invest in it," he said. "A short-term manufacturer will go back to building just ICE vehicles and ignore the future of EV." Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
15-05-2025
- Automotive
- Yahoo
J.D. Power: Car buyers are still interested in EVs and Tesla alternatives
Despite the whirlwind of headlines about auto tariffs, EV mandates, and even the potential loss of EV tax credits, Americans are still very much interested in EVs. Including those not named Tesla. Consumer research group J.D. Power's latest EV consideration study found that 24% of car shoppers said they are "very likely" to consider purchasing an EV, and 35% said they are "somewhat likely," which is largely unchanged from a year ago. J.D. Power polled 8,164 consumers in January through April who intend to buy or lease a new vehicle in the next 12 months. "Despite the market volatility, EVs have found a solid ground for consumer consideration,' J.D. Power executive director of EV practice Brent Gruber said in a statement. Interestingly, with more options available, consumers are shopping across brands. Buyers are cross-shopping on average 2.9 brands when looking at EVs, versus two brands seen with gas-powered cars. And they are increasingly looking at EVs other than Tesla. J.D. Power found that the top five vehicle brands cross-shopped among purchasers interested in the Model Y SUV are Honda, Ford, BMW, Toyota, and Cadillac, in that order. "Manufacturers that didn't have electric vehicles before have now rounded out their portfolios with EV products, and so consumers are considering products from those other brands," Gruber said in an interview with Yahoo Finance. Honda's popular Prologue EV, Ford's Mustang Mach-E, and BMW products like the iX, i4, and i5 are gaining traction. Cadillac's Lyriq has been GM's top-selling EV for some time now. Read more: How your vehicle's make and model affect car insurance costs Gruber added that Tesla brand issues may be behind the cross-shopping. "There's certainly some consumer sentiment for and against some of the actions taken by Elon Musk in the political arena," Gruber said. "So we have seen some impact from that." But Gruber believes Tesla sales have been affected by the availability of new products coming to market, like the Prologue and Lyriq, rather than perceived brand issues. The broader EV market, however, faces a big headwind: the potential loss of the $7,500 federal EV tax credit. House Republicans are pushing a bill that would end the EV tax credit, a signature component of former President Biden's Inflation Reduction Act. Not surprisingly, Gruber believes this would create a major impact on EV sales. "You're potentially looking at a double whammy with tariffs and the elimination of the tax credit," Gruber said. "You're talking about what is conceivably a $12,000-plus swing on the price of an electric vehicle. So if those tax credits go away, you're going to see probably a slowdown in the level of interest for electric vehicles." Of course, it's not just a problem for consumers. It's also a major problem for automakers. Per current EPA rules, automakers need to sell EVs to meet federal emissions targets. If they do not, they're on the hook for billions in fines or must purchase carbon credits from companies like Tesla. "We believe the credits are critical for automakers to achieve current federal and state emissions standards," a spokesperson for the Alliance for Automotive Innovation, a trade group that represents several major automakers, said to Yahoo Finance. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
Yahoo
15-05-2025
- Automotive
- Yahoo
J.D. Power: Car buyers are still interested in EVs and Tesla alternatives
Despite the whirlwind of headlines about auto tariffs, EV mandates, and even the potential loss of EV tax credits, Americans are still very much interested in EVs. Including those not named Tesla. Consumer research group J.D. Power's latest EV consideration study found that 24% of car shoppers said they are "very likely" to consider purchasing an EV, and 35% said they are "somewhat likely," which is largely unchanged from a year ago. J.D. Power polled 8,164 consumers in January through April who intend to buy or lease a new vehicle in the next 12 months. "Despite the market volatility, EVs have found a solid ground for consumer consideration,' J.D. Power executive director of EV practice Brent Gruber said in a statement. Interestingly, with more options available, consumers are shopping across brands. Buyers are cross-shopping on average 2.9 brands when looking at EVs, versus two brands seen with gas-powered cars. And they are increasingly looking at EVs other than Tesla. J.D. Power found that the top five vehicle brands cross-shopped among purchasers interested in the Model Y SUV are Honda, Ford, BMW, Toyota, and Cadillac, in that order. "Manufacturers that didn't have electric vehicles before have now rounded out their portfolios with EV products, and so consumers are considering products from those other brands," Gruber said in an interview with Yahoo Finance. Honda's popular Prologue EV, Ford's Mustang Mach-E, and BMW products like the iX, i4, and i5 are gaining traction. Cadillac's Lyriq has been GM's top-selling EV for some time now. Read more: How your vehicle's make and model affect car insurance costs Gruber added that Tesla brand issues may be behind the cross-shopping. "There's certainly some consumer sentiment for and against some of the actions taken by Elon Musk in the political arena," Gruber said. "So we have seen some impact from that." But Gruber believes Tesla sales have been affected by the availability of new products coming to market, like the Prologue and Lyriq, rather than perceived brand issues. The broader EV market, however, faces a big headwind: the potential loss of the $7,500 federal EV tax credit. House Republicans are pushing a bill that would end the EV tax credit, a signature component of former President Biden's Inflation Reduction Act. Not surprisingly, Gruber believes this would create a major impact on EV sales. "You're potentially looking at a double whammy with tariffs and the elimination of the tax credit," Gruber said. "You're talking about what is conceivably a $12,000-plus swing on the price of an electric vehicle. So if those tax credits go away, you're going to see probably a slowdown in the level of interest for electric vehicles." Of course, it's not just a problem for consumers. It's also a major problem for automakers. Per current EPA rules, automakers need to sell EVs to meet federal emissions targets. If they do not, they're on the hook for billions in fines or must purchase carbon credits from companies like Tesla. "We believe the credits are critical for automakers to achieve current federal and state emissions standards," a spokesperson for the Alliance for Automotive Innovation, a trade group that represents several major automakers, said to Yahoo Finance. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
