Business, not personal
The European Commission gives the US government a reserved smile now that it appears that European cars that are purchased commercially in the US do qualify for US purchase subsidies. However, the fact that this does not apply to privately purchased EVs remains a problem, according to ‘Europe’.
The subsidies in question are part of the US Inflation Reduction Act. This is a package of measures to dampen inflation, although the opportunity is being used to give ‘green’ solutions a boost. Two parts of this package are important for the automotive industry: the ‘New Clean Vehicle Credit’ for private car buyers, and the ‘Commercial Clean Vehicle Credit’ for business car buyers.
The ‘problem’ with these measures, at least for non-Americans, is that they are designed to protect the US market. For example, car buyers are only eligible for the ‘New Clean Vehicle Credit’ if the (fully or partly) electric car is built in the United States. European brands are therefore not banned as such, but only benefit if they have their products screwed together in an American factory. The measures introduced under President Biden smell very much like the steps that the other president was so reviled for.
The ‘Built-in-America requirement’ has been a thorn in the side of the EU from the start. Now there is a bright spot, because the condition does not appear to apply to the commercial category. With the ‘Commercial Clean Vehicle Credit’, the US government only mentions that the vehicle in question must have been built by ‘a qualified manufacturer’, but does not set any requirements for the country of origin.
For commercial vehicles with a gross vehicle weight of 14,000 pounds, or approximately 6,350 kilograms, the maximum benefit is $7,500. Heavier vehicles—that is, trucks, in general—are even eligible for up to $40,000 in “government rebates,” though a maximum of 30 percent of the purchase price applies if the vehicle is not powered by an internal combustion engine at all. If a petrol or diesel engine is available, the maximum is 15 percent of the price.
You read that right: fully electric propulsion is not mandatory. To be eligible for a subsidy, cars must be electrically powered ‘for a significant part’. The US government considers this to be the case if there is a battery of at least 7 kWh, which can be charged via an external source with a charging cable.
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– Thanks for information from Autoweek.nl