The big stories this week…
NATIONAL
HOUSE ENDS EV INCENTIVES
On Thursday, the House voted to pass a tax and spending bill which effectively ends the climate policy established by the Inflation Reduction Act passed by the Biden Administration in favor of drilling, mining, and other carbon producing energy production.
The bill ends tax credits for rooftop solar, ends the EV tax credit after 2025 with an exception for automakers that have sold fewer than 200,000 cars that qualified for the incentive.
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Any project which received credits will now have their funding cut if the project is not started within 60 days of the bills signing in favor of a previously proposed three-year phase-down.
A provision allowing the sale of 460,000 acres of public lands in Nevada and Utah did not make it into the final bill.
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SENATE BLOCKS CALIFORNIA CLEAN CAR RULES
In related news, the Senate on Thursday voted to prevent California’s plan to end the sale of gasoline-only vehicles by 2035. A rule which 11 other states have adopted. Collectively the 11 states make up one-third of the market.
The vote also rescinds California’s rule that electric cars must make up at least 80% of sales by 2035.
The Alliance for Automotive Innovation, a group representing GM, Toyota, Volkswagen, Hyundai, Stallantis (makers of Dodge and Chrysler products), lobbied to remove the rules.
In a separate vote on Thursday, California’s plan to increase the number of zero-emission heavy duty trucks as well as prevent California’s low NOx regulations on heavy-duty and off-road vehicles and engines.
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STATES
GOVERNORS COMMIT TO CLEAN CARS
The United States Climate Alliance, a bi-partisan coalition of 22 US Governors and the territories of Puerto Rico and Guam have agreed to continue the pursuit of a national clean car standard through the ‘Nation’s Clean Car Promise”
A press release by the alliance calls for a common-sense approach that protects the role of states at the negotiating table and establishes a strong, national standard that:
Achieves continuous, meaningful annual reductions in greenhouse gas emissions and criteria pollutants while saving consumers money.
Provides regulatory certainty and enhances the ability to invest and innovate by avoiding extended periods of litigation and instability.
Preserves good jobs in the auto sector and keeps new vehicles affordable for more Americans.
Some of the states making up the alliance include, Arizona, California, Connecticut, New York, North Carolina, Wisconsin, and Vermont.
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AUTOMAKERS
VOLVO PASSES TARIFFS TO CUSTOMERS
Volvo’s CEO Hakan Samuelson told Reuters on Friday that Volvo would push a large part of the tariff-related cost increases to the customer. The tariffs would make it impossible to import one of its most affordable cars to the United States.
Samuelson also stated the a 50% tariff would limit the ability of Volvo Cars to sell its Belgium-made EX30 electric vehicle in the United States.
With a planned starting price of $35,000, hefty tariffs imposed on cars made in China led Volvo to delay selling the car in the U.S. market until production started in Ghent, Belgium, which happened in April of this year. The car's starting price is now at $46,195.
Samuelsson said he was hopeful that Europe and the United States will soon come to an agreement despite the threat of rising tariffs.
"I believe there will be a deal soon. It could not be in the interest of Europe or the U.S. to shut down trade between them." said Samuelson.
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BASE CHARGER GETS UNPLUGGED
With sales of less than 2,000 units in its first three months, Dodge has decided to end the sale of the R/T edition of the Charger. The news does not affect the sale of more powerful fully electric Scat Pack version of the car.
In a statement, Dodge CEO Matt McAlear said “production of the Dodge Charger Daytona R/T is postponed for the 2026 model year as we continue to assess the effects of U.S. tariff policies.”
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HONDA SCALES BACK
Honda has announced that tariffs and slower sales are forcing them to reconsider their electric vehicle plans.
Honda said on Tuesday that it was scaling back its investment in electric vehicles given slowing demand and would be focusing on hybrids. It has also slashed planned investments in electrification and software by 30% to $48.4 billion.
Earlier this month, Honda announced it had put on hold for about two years a $10.7 billion plan to build an EV production base in Ontario, Canada.
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RIVIAN R2 IN TESTING
A recent announcement from Rivian revealed the R2 has entered validation phase. This is where production-intent builds of a vehicle are set out on extended mileage runs, in addition to extreme cold and hot weather testing. All in order collect data to ensure the vehicles perform at the level the manufacturer expects them to.
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The Rivian R2 is expected to be available in the first half of 2026.
VW ID.2 GOES INTO PRE-PRODUCTION
Seat S.A., part of the Volkswagen Automotive Group, has announced in a recent press release the first pre-series battery systems have already rolled out of the Martorell factory and has started pre-series production of body parts.
These parts will be used for the two electric models it will produce in Martorell in 2026, starting with the CUPRA Raval, followed by the production version of the Volkswagen ID. 2all.
The ID.2all is a small compact EV comparable in size to a Volkswagen Polo. If you’re not familiar, a Polo is a European model which is smaller than the Golf. However, the ID.2 is expected to have a compact exterior, the interior will rival that of its larger sibling.
The VW ID.2all is expect to arrive in the EU and UK in 2026 starting at $27,000. VW has not confirmed if the ID.2all will make it to the U.S.
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A TRUCK TO BOSS THE TRAILS
Chevrolet has announced a new off-road edition to the Silverado EV dubbed ‘Trail Boss’.
The Trail Boss will feature a 2” lift, trim-exclusive Terrain mode offering additional low speed control. ‘Terrain’ mode offers sharper “4-Wheel Steer” for maneuvering through areas with uneven terrain. Additionally, the Trail Boss will also arrive with Sidewinder mode.
In addition to the suspension updates, the Trail Boss also receives redesigned front facia to improve the approach angle, 35” all-terrain tires on 18 rims, as well as trim specific graphics and color options.
The Silverado EV Trail Boss starts at $72,095 with an Extended range battery with 410miles of EPA-estimated range, while the Max battery increases in price to $88,695 with a GM-estimated range of 478 miles.
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MISCELLANEOUS
BUYERS STILL WANT EVS
Our final story ends this on a positive note.
Even amid market uncertainty, a recent survey by J.D. Powers finds consumer demand for EVs remains unchanged compared to a year ago. The study reveals that 24% of vehicle shoppers say they are “very likely” to consider purchasing an EV and 35% say they are “somewhat likely.”
The survey points out four key findings:
Cross-shopping is a thing. Seems those who identify as ‘very likely’ to consider an EV cross-shop 2.9 brands while those who identify as ‘somewhat likely’ cross-shop 2.8 brands. EV shoppers will compare a mass market brands like Chevrolet and Hyundai to a premium brand like Volvo or Audi.
It’s the charging stupid. Concerns around charging rated high as 52% of shoppers stating charging station availability as their primary reason for not considering an EV.
A dichotomy between younger and high-income earners. Younger adults have high interest, but low incomes, while high-income earners have the means but show less interest.
Midwest states have low enthusiasm toward EVs. In states like Wisconsin, Kentucky, Minnesota, and Ohio, the percentage of those who considered themselves ‘very likely’ interested in purchasing an EV floated between 16-18%. Concerns around cold-climate performance and loyalty to traditional automakers weighing heavy on this point.
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