With supply chains still in disarray and the war in Ukraine wreaking havoc on EV battery component commodity prices, many forward-thinking automakers are scrambling to secure not only stocks of the valuable metals like cobalt, lithium and nickel that g…
Toyota runs out of federal EV tax credits, pushing prices higher
Toyota is the latest automaker to run out of US federal tax credits and it will join Tesla and GM in losing access to the $7,500 subsidy. The company surpassed the qualifying sales threshold for EVs and hybrids in June, as Bloomberg reports.
The government limited each carmaker to 200,000 EV tax credits, though Toyota and other companies have been lobbying for that cap to be lifted. Toyota says losing the credit will mean its EVs are more expensive for consumers, which will slow the transition away from combustion-engine cars to EVs.
However, Toyota and Tesla have pushed back on a Biden administration plan to grant extra credits to unionized carmakers. GM, Ford and Stellantis (the parent of Fiat and Chrysler) have unionized plants. The Build Back Better Act, which passed through the House but stalled in the Senate, also included extra credits for cars made entirely in the US.
As things stand, Toyota’s tax credits will be phased out gradually over a one-year period. Bloomberg notes that the value of the subsidy will be halved twice before it expires. However, Toyota will still be able to take advantage of incentives at the state level.
We’re heading for a messy, and expensive, breakup with natural gas
Russia’s invasion of Ukraine has exacerbated a number of fault lines already present within the global energy supply chain. This is especially true in Europe, where many countries were reliant on the superstate’s natural resources, and are now hastily …
Rivian pushes back deliveries of its R1S SUV once again
Early buyers of Rivian’s latest electric SUV are facing another delivery delay. A number of customers who pre-ordered Rivian’s R1S SUV received an email this week informing them that an expected June or July delivery window has been pushed back several months. According to Auto Evolution, customers posted on Rivian’s forum that their delivery window had been updated to August or September 2022, or as late as October through December 2022. The EV maker first debuted the seven-passenger vehicle — which has a starting price of $72,500 — back in November 2018, and has pushed back deliveries multiple times, citing production delays and supply chain issues. Deliveries of the first batch of R1S SUVs were originally slated for August 2021.
The company in its email chalked up the latest delay to ongoing supply chain issues and its limited service infrastructure. It said that it would prioritize deliveries to areas that are close to Rivian service centers. Rivan currently operates service centers in only 14 states, so customers in other areas will likely have an even longer wait.
“As we continue to assess our supply chain and build plans, we want to provide an update on your estimated delivery window,” wrote Rivian in its email to customers. It stated that the customer’s updated delivery window was based on three factors: their preorder date, delivery location and current configuration. But a number of early customers seemed puzzled at how Rivian calculated the new delivery window. One customer noted that they pre-ordered the R1S SUV back in November 2019, yet was assigned to the later delivery window of the fourth quarter of 2022. Many customers who lived in especially remote areas or in a state without a Rivian service center also reported later delivery windows. “The irony of an off-road adventure vehicle delivered only to major cities,” wrote one Rivian customer on the company’s forum.
Rivian has struggled to scale up production of its vehicles amidst a global parts shortage, including semiconductors. The Tesla competitor isn’t able to rely on existing relationships with parts suppliers, which traditionally prioritize the larger, more established car companies, the Wall Street Journal noted.
UK regulator plans to launch probe into Google’s and Apple’s mobile duopoly
The UK’s Competition and Markets Authority (CMA) has concluded that Google and Apple “hold all the cards” when it comes to mobile phones a year after taking a closer look at their “duopoly.” It’s now consulting on the launch of a market investigation into the tech giants’ market power in mobile browsers, as well as into Apple’s cloud gaming restrictions. In addition, the CMA has launched a separate investigation into Google’s Play Store rules — the one that requires certain app developers to use the tech giant’s payment system for in-app purchases, in particular.
The CMA has concluded after its year-long study that the tech giants do indeed exhibit an “effective duopoly” on mobile ecosystems. A total of 97 percent of all mobile web browsing in the UK is powered by Apple’s and Google’s browser engines. iPhones and Android devices typically come with Safari and Chrome pre-installed, which means their browsers have the advantage from the start. Further, Apple requires developers to make sure their iOS and iPadOS apps are using its WebKit engine to browse the web. That limits the incentives Apple may have to invest in Safari, the CMA said.
The agency also pointed out that Apple enforces policies that prevent cloud gaming apps from being available to download from its App Store. Under its rules, cloud gaming services would have to individually submit each playable game for review and approval if they want to be listed. The company eventually carved out an exception, but only to make services like Xbox Cloud Gaming available on iOS devices through a browser.
In its announcement, the CMA explained that the lack of intervention would allow the tech giants to maintain and even strengthen their hold not just over mobile browsers, but also over mobile operating systems and app stores. Their duopoly could stifle competition and limit incentives for individuals and other companies to innovate and develop new products and technologies for those markets.