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States Are About to Receive Big Checks for Installing Electric Vehicle Chargers
The Bipartisan Infrastructure Bill passed by Congress and signed into law in November allocated federal funding for the build-out of a National Charging Network as soon as possible. In official guidance released by the Biden administration on Thursday, new details were announced for the first phases of implementation.
Nearly $5 billion in funding will be available for installing DC fast chargers over the next five years. DC fast chargers enable an electric vehicle to charge to full in as little as 20 minutes. While crucial for the mass adoption of EVs in America, DC fast chargers are expensive to install, often costing over $100,000 per location.
US Department of Transportation Secretary Pete Buttigieg said that the government will make $615 million available for use in 2022. In order to have access to their own piece of the pie, states must submit a plan and win approval before funds are dispersed this year.
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Interstate Highways to Be Prioritized First
Thursday’s new guidance says that states should specifically fund the installation of DC fast chargers along interstate highways. The goal should be to fund the installation of fast chargers every 50 miles along the highway to make long-distance travel much easier for drivers of electric vehicles.
The federal government expects private entities to take on the charger installations. We’ll likely see a lot more Electrify America and Tesla Supercharger stations in the next few years, as well as the likes of lesser-known charging providers like EVgo and ChargePoint picking up business. Federal funds will cover 80% of DC fast charger installation costs, with private or state funds filling in the gaps.
Following charger network buildout along interstate highways, the guidance recommends that states work to install chargers in other underserved areas, such as rural areas and lower-income urban areas.
If you’re into policymaking jargon, you can read the entire guidance at the Department of Transportation.
Revisions to the EV Tax Credit Hang in the Balance
Congress axed the Build Back Better Bill in its current form back in December. For now, the electric vehicle tax credit remains a $7,500 value for those who owe as much in federal taxes. Tesla and GM have already exhausted their allocation for the tax credit. Unless revisions to the EV tax credit are passed by Congress, Tesla and GM will not qualify in 2022.
CarEdge will stay on top of the latest electric vehicle news. The 2020s are becoming the whirring 20s as automakers transition away from fossil fuels and invest half a trillion dollars in electrification. It looks like a National Charging Network is just a few years away. Join our weekly newsletter for all of the latest EV and automotive industry news, always with a consumer focus.
Another Tesla Recall: Goodbye Tesla Boombox?
The word “recall” sure is thrown around loosely these days. By now, you likely know that Tesla fixes the vast majority of recalls with an over-the-air software update. In the tenth recall in just four months, Tesla is addressing a pedestrian safety concern brought up by the US National Highway Traffic Safety Administration (NHTSA).
During the 2020 holiday season, Tesla sent a gift of sorts to all of their customers. The cars received an update that turned the external speakers into a boombox. The Tesla Boombox can play a number of customizable sounds (music, jokes, fart noises…) out of the same speakers that are meant to alert pedestrians of the approaching, silent electric car. It’s the customizable feature that seems to be at the center of this recall. Under certain circumstances, the Boombox can disrupt the federally-mandated pedestrian warning risk sounds.
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No Need For a Service Center Visit
In typical Tesla fashion, the pioneering automaker will push an over-the-air update to all of the affected cars. Tesla cars just need a WiFi connection to receive these frequent updates. Some OTA updates even increase performance or battery life.
Check out Tesla’s official response to the NHTSA investigation here. It’s interesting to observe the automaker interacting with the federal agency that is always on their case. Here’s how simple the Tesla Boombox recall remedy is:
“Tesla will perform an over-the-air (OTA) software update that will disable the Boombox functionality when the vehicle is in Drive, Neutral and Reverse modes, free of charge. Owner notification letters are expected to be mailed April 5, 2022.”
Tesla Boombox will only work in Park mode it seems. Perhaps that was common sense all along? Tesla’s engineers typically work quickly to send such urgent recall fixes over-the-air. While the notice says that owners will receive notices by mail in April, it’s very likely that the remedy will update cars much sooner.
The Tesla Advantage
Lots of people aren’t fans of Tesla for one reason or another. However the EV pioneer does have an undeniable advantage when it comes to updating their vehicles. With well over 2 million Tesla vehicles on the road today, OTA updates are a key selling point for car buyers in the electric vehicle market. Other automakers are rushing to implement the capability in their future models, as seen by recent announcements from GM, Ford and literally every EV startup today.
We recently took a deep dive into over-the-air updates, and shared automaker plans for adding the feature to their lineups. Learn more about OTA update capabilities.
Let us know what you think in the comments. Does the Tesla Boombox recall make sense? Would you buy a Tesla? Does OTA update capability factor into your decision?
5 Cars to Avoid in 2022
What do these five cars have in common? They stink for one reason or another. Transportation is the second biggest purchase most people will ever make, so it’s important to get it right. With the automotive market at all-time highs, it wouldn’t be a good time to have buyers remorse. Here are five cars to avoid in 2022, and why you should steer clear of them.
Chevrolet Bolt
Right now, the socially-distancing Chevrolet Bolt is up a shocking 42% since a year ago. Why do so many people want to buy a rolling fire hazard? Dealerships aren’t even allowed to sell Bolts until they work through the backlog of recall fixes. The stop-sale may come to an end soon, but does that mean you should buy one? With the lowest charging speeds on the market and a damaged reputation, don’t buy a Bolt. Plus, it’s likely to be discontinued! GM doesn’t mention the Bolt in their future roadmaps for electrification. If you really want an affordable electric vehicle from GM, CEO Mary Barra is touting the Chevrolet Equinox EV just around the corner. Do you know how long it takes to charge a Chevy Bolt to full at a public fast charger like Electrify America? An hour and 20 minutes. So many EVs on the market today charge up in half that time. Please don’t buy a Bolt!
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Mitsubishi Mirage
The world needs more affordable cars, but the Mitsubishi Mirage has appreciated way too much to justify the purchase. This sub-compact car has appreciated over 52% on the used vehicle market since 2020. The average used Mirage sells for $14,404, which is amazing considering a new one costs $14,600. The Mirage has some of the worst performance and comfort ratings in existence. It’s noted for ‘seats that feel more like cloth-covered chairs’ as Edmunds put it. Car and Driver gave in 2.5 stars out of TEN. It’s always best to buy and hold, rather than taking a big hit on depreciation after driving off the lot. Is the Mitsubishi Mirage a car you’d want to keep for a decade? probably not.
Ford Transit
Now is not the time to buy a van. Full-sized vans have appreciated by 55% this past year, and minivans have jumped 42%. While the Ford Transit starts at an MSRP around $35,000, most dealers are asking over $48,000 for the base trim. The Transit is a solid van with great utility, but there’s no way its long term value will reflect the current price. That could be said about most cars on the market now, but 55% appreciation is through the roof. You’re buying a van, not a house.
Hyundai Santa Fe
Sometimes, a vehicle is too popular. If you are determined to get yourself into a Hyundai Santa Fe in 2022, expect it to come at a substantial cost. Year-over-year, prices for the Santa Fe are up 48%! On top of unattractive prices, the Santa Fe is involved in a major recall affecting half a million cars. While most consumers are happy with their Hyundai SUVs, Consumer Reports recently stopped recommending the Santa Fe due to poor reliability. Once the chip shortage ends, resale values will drop. Don’t get stuck with a vehicle you paid 48% appreciation for!
Anything from Carvana or Vroom
No pre-purchase inspection? Not okay! Want to buy a used car with fast food still in the back seat? Want to make sure you DON’T get your title anytime soon? I don’t think you do. Selling to Carvana or Vroom might make you a pretty penny, but buying from Carvana could be a disaster. The ongoing Carvana lawsuit makes for an uncertain future for Carvana. It’s best to stay out of that mess and take your money elsewhere, at least for the time being. In today’s world, a pre-purchase inspection is a must-have for any used vehicle. Sure, there may be a 7-day return period, but it’s a huge pain to undo a big-money transaction like buying a car. Don’t do it!
These are cars to avoid in 2022 if your goal is to make a purchase you won’t regret. What about the five cars to buy in 2022? Here’s our list of the top buys in the market right now.
Updated: The Bridge to Detroit Is Closed, And Now Automakers Are Halting Production
Update 2/10/2022: The situation on the US – Canada border continues to get worse. Now, GM’s Lansing Delta Plant is shut down for the day. The plant, which employs 2,000 workers, builds the Chevrolet Traverse and Buick Enclave crossovers. Automotive News reports that Stellantis shortened shifts for their production plants in Windsor and Brampton, Ontario. Ford’s two engine-making plants in Ontario are operating at reduced capacities too. Toyota seems to be hit pretty hard too. Toyota does not expect any production in its Ontario facilities for the rest of the week. Check back for the latest updates.
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A blockade at the US-Canada border threatens to amplify the magnitude of the ongoing supply shortage that’s been gripping the automotive industry for the greater part of the last year. The general consensus is that Detroit automakers could weather a two-day blockade without severe interruptions. It’s day three, and both sides of the international automotive supply chain are preparing for significant disruptions.
Across Canada, truckers are protesting the federal vaccine mandate. The protests first began to disrupt cross-border traffic on Monday. One-quarter of all goods traded between the two countries passes through the Ambassador Bridge linking Detroit, Michigan with Windsor, Ontario. The corridor is crucial for $100 billion in trade annually. The Windsor-Detroit Bridge Authority estimates that 7,000 trucks cross the bridge every day.
Traffic from Canada to the US reopened Tuesday afternoon, but traffic in the opposite direction remains closed. With protests ongoing and spreading to other ports of entry, the threat of major disruption remains.
Automotive Suppliers Are On Edge
Robert Wildeboer of tier-one automotive supplier Martinrea International told Canadian news outlet BNN Bloomberg that the clock is ticking for the whole cross-border supply chain.
“Basically if there’s a shutdown of transportation routes, the auto industry comes to a screeching halt in about two days,” said Wildeboer on Tuesday. Martinrea has 38 trucks of automotive parts crossing the Ambassador Bridge into Detroit daily.
The Automotive Parts Manufacturers’ Association is not too happy about the blockade either. Association Head Flavio Volpe denounced the blockade on social media and called for an immediate end to the disruptions.
Automotive News reports that the Canadian Vehicle Manufacturers’ Association is calling for an immediate end to the protests that threaten jobs and vehicle production on both sides of the border.
“Blockades at Canada’s borders are threatening fragile supply chains already under pressure due to pandemic related shortages and backlogs,” CVMA CEO Brian Kingston said in a statement. Vehicles and automotive parts are Canada’s second largest export, worth $52 billion each year. Automotive products account for 23% of all Canadian exports, second only to natural resources.
Not all of Canada’s truckers are protesting. The Teamsters Union says that in Canada, truckers are worried about the harm being done by the protesters at the border. The Teamsters Union worries that the disruptive actions of the protestors delegitimize the real concerns of most Canadian truck drivers.
Consumer Impacts?
If the Canadian blockade continues, we expect production capacity to screech to a halt. As a result, dealer lots will empty even further, and prices will rise yet again. Dealer profits remain at record highs despite inventory remaining at record lows. Can the mismatch between supply and demand get any worse? Unfortunately, it’s now possible. In Canada, truckers are the vital link in the critical supply chain connecting the two countries. The latest developments at the border complicate an already slow recovery for the industry.
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Hyundai and Kia Recall 500,000 Vehicles For Fire Risk. Park These Models Outside!
In today’s reminder that combustion vehicles are more fire-prone than electric cars, Korean giants Hyundai and Kia are issuing a recall for half a million American cars, according to an announcement by the US National Highway Traffic Safety Administration (NHTSA).
“Kia Motors America and Hyundai Motor America recommend that owners of select model year 2014-2016 Kia Sportage, 2016-2018 Kia K900 and 2016-2018 Hyundai Santa Fe vehicles park their vehicle outdoors and away from other vehicles or structures due to a risk of fire, even if the vehicle is turned off.”
The recall affects 126,747 Kia vehicles and 357,830 Hyundai vehicles in the United States. The NHTSA statement says that Kia and Hyundai have identified an increasing risk of an engine compartment fire.
“Although the cause remains unknown, the manufacturers believe an electrical component in the anti-lock brake system may experience an internal electrical short circuit that could increase the risk of fire both while the vehicle is being driven or parked.”
If you or someone you know have been impacted by this recall, visit NHTSA.gov/Recalls to find out if a specific VIN number is affected. If it is, the owner should park their vehicle outdoors until the recall repair is completed.
