IRS EV Tax Credit Rollercoaster, Deez Benz Prices, Recycling Run-Back

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

It's President's Day and the Auto Industry is feeling patriotic as we discuss the rocky start for EV tax credit transfers, Mercedes-Benz's strategy navigating luxury and mainstream markets, and the harsh truths about plastic recycling.

• Dealerships are facing mixed results with the IRS portal for EV tax credit transfers: while some smoothly navigate the system, others have hit technical snags, challenging their ability to offer instant credits to buyers and putting Dealers in a risky position
  • Some dealers successfully use the IRS Energy Credits Online portal, enabling immediate tax credit applications at sale, but others report frustrating glitches.
  • After nearly two months, Andrew Tang's glitch was resolved, allowing his dealership to finally recover the $7,500 credit it fronted on nine Bolt sale
• Gary Pretzfeld, co-owner of AutoTrustUSA, encountered a "known error" that prevented offering instant tax credits,"The whole thing, it sucks and it's unfair," Gary Pretzfeld expressed his frustration over portal issues that initially hindered his dealership's ability to compete by offering instant EV tax credits
  
• Mercedes-Benz refutes claims of deprioritizing high-end vehicles for cheaper gas cars, emphasizing a strategic balance between ICE, EV, and PHEV models to cater to market demands and growth opportunities.
  • The company allegedly told dealers at their NADA make meeting that 2024 will be the year when they focus on lower-priced cars to drive sales. According to a dealer who attended the meeting, an exec stated: "Last year was about profitability; this year is about sales growth."
  • Mercedes plans to introduce 25 new products in 2024, focusing on both core and high-end segments, including the anticipated S63e, G-Class, and AMG GT models.
  • Despite rumors, Mercedes maintains its "Economics of Desire" strategy, directing over 75% of R&D to lucrative segments, with a future aim for an all-electric lineup.
  • "Our long-term strategy is to go all electric in the future where market conditions allow," a Mercedes-Benz spokesperson clarified, highlighting tactical flexibility in their vehicle portfolio.
    
• A recent report highlights the stark reality that almost no plastics can be effectively recycled, challenging decades of industry narratives and calling for accountability from the fossil fuel sector.
  • Despite a recycling campaign by the industry, the U.S. plastic recycling rate stands at a dismal 5%-6%, with the report citing over 50 years of misleading practices by Big Oil and the plastics industry.
  • The plastics industry defends its efforts, arguing that modern recycling technologies are overlooked, and emphasizes plastics' role in achieving sustainability and lower carbon goals.

Hosts: Paul J Daly and Kyle Mountsier
Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/

Read our most recent email at: https://www.asotu.com/media/push-back-email