Before you go! Share this content on any social media platform
TeslaThe tax credit has expired, oil production is high at all times, BMW is not confident for the next year, and a car-supplier founder sued his daughter over the family's assets. All this and more in The morning shift for Friday, October 12, 2018.
First Gear: Time is running for Tesla Tax Credits
As Tesla became more popular and its production capacity began to meet demand, it was only a matter of time before the government reached the vehicle limit of $ 200,000 for the $ 7,500 electric vehicle tax cut. Form Reuters:
Electric car maker Tesla Inc said orders for cars placed by October 15 will be eligible for a full federal tax credit of $ 7,500 and those customers will receive their cars by the end of the year.
Electric car buyers receive full tax credit for the quarter in which the company reaches the 200,000 delivery mark and the next, according to the Internal Revenue Service regulation.
This means that Tesla will have to hand over the full tax credits by the end of the year, which could lead to a further rush of orders and hit the company's already tight production and supply chain
The 200,000 cap is only for a single automaker, so the federal tax credit is still valid for other electric vehicles on sale that have not yet crossed the threshold to the cold, beyond that is a high price tag. Reuters points out that Tesla's losing full federal credit makes coming competition from BMW, Mercedes and Audi even stronger.
It should be interesting to see how this will affect Tesla next year as it can no longer ride on the promise of a full big federal rebate when trying to swing people away from the larger traditional automakers. While perhaps not as important to someone buying a more expensive Tesla Model S or Tesla Model X, it may be harder for the less expensive Model 3 customers, as they can not benefit from the less expensive $ 35,000 is not even in production,
However, the way in which the tax credit is established means that it will be reduced by 50 percent every six months after the 200,000 mark has been crossed, until it finally expires, which means that there will be a fairly good federal rebate for the next one $ 3,750 should be a few months, not to mention individual government incentives.
Second gear: Oil consumption is at an all-time high
Although Europe, China and the US are (somehow) pushing for alternative energy generation and new modes of transport, this has not stopped demand in developing areas of the world from raising oil production to a new record, Bloomberg Reports.
Global supply rose to 100.3 million barrels a day in the third quarter, the International Energy Agency said on Friday in its monthly oil market report. Production, which includes crude oil, natural gas liquids, biofuels and refinery processing gains, was 2.3 million barrels over the same period last year and 1.3 million barrels per day higher than in the second quarter.
The increase in production compared to the second quarter was led by OPEC, which increased production by 500,000 barrels per day, and America, with an increase of 400,000 barrels per day. Biofuels production also rose 300,000 barrels a day from the previous quarter, according to the report.
If you are like me and still thinking about it this report from the beginning of this week that describes how the world will essentially go to hell in 2040 if we do not dramatically change the global economy and our current forms of energy use, this news is like an oily little cherry on a sundae of death!
The International Energy Agency also predicts that global oil supply will rise to 102 million barrels a day, so it will not improve in the foreseeable future.
Third Gear: BMW Claims US and China fares will be ruined in 2019
BMW has already predicted that its profits this year will fall short of expectations due to tariffs between the US and China and will only worsen in 2019. Reuters Reports.
The German car maker BMW (BMWG.DE) expects next year with a profit of up to half a billion euros (579 million US dollars), if the tariffs between the US and China remain, said CFO Nicolas Peter the Automobilwoche.
The counterparts between the US and China have hurled the export of Sport Utility Vehicles from its US plant in Spartanburg, South Carolina, to China Profit of nearly 300 million euros has resulted, said Peter article will be published on October 13.
Even if we pretend that US tariffs on Chinese goods should protect American consumers and workers, Chinese tariffs on goods from the US will do just as much. What do we think will happen to US workers if BMW tries to cut costs at its plant in Spartanburg?
Fourth Gear: When families fiver over trillion dollar auto parts
The founder of major Canadian automotive supplier Magna International, Frank Stronach, has sued his daughter and a few others for $ 400 million for allegations of mismanagement of family assets. Bloomberg reports:
The Stronachs "regret that they must file a lawsuit in the Supreme Court of Ontario against their daughter Belinda, Alon Ossip and others," the couple said in a statement from their law firms. "They have done so only as a last resort, after having made significant efforts within nearly two years to resolve the issues in question by mutual agreement."
According to the Toronto Star, the Stronachs accuse their daughter and Ossip of "having committed a series of covert and unlawful acts" that contradict the best interests of other family members. Other allegations relate to allegations of breach of contract, fraudulent concealment and unjust enrichment, the star said.
Bloomberg says Stronach is worth at least $ 1.9 billion. So you might think that there is a lot of money. But billionaires are not inclined to think.
A daughter's spokesperson, Ossip, claimed that she has always acted in the best interests of the family, and it's Frank Stronach's "recent excessive spending and numerous failed ventures" that endanger family fortunes.
Nothing has been proven in court, but the family seems to go through the whole process, at least for the moment. This will become messy.
Fifth Gear: China supports growth with the proposal to lower taxes on cars
As we reported yesterdayChina faces the challenge of stopping automobile growth for the first time in decades, and now the country's largest auto dealer association is calling on the government to lower taxes on car purchases to help Reuters reports:
The China Automobile Dealers Association (CADA) submitted documents to the country's finance and trade ministries last month, and suggested halving the 10 percent car tax, two industry officials told Reuters.
The influential body has made proposals in recent years that have contributed to the design of auto policy. When China cut its purchase tax three years ago, automobile sales have skyrocketed in the world's largest auto market, which is a key field for global automakers from General Motors to Toyota Motor.
Protecting the growth of its auto industry is a stressful time for China as it battles US tariffs. The country views the health status of its car market as a key indicator of its economy as a whole.
The proposed tax reduction applies only to 2.0-liter engines or smaller, which is similar to the tax cuts a few years ago, which in 2016 resulted in revenue growth of 13.7 percent year-on-year. The government has met with the dealer association but it is not yet clear which measures will be taken.
Some analysts claim that a tax cut would only have short-term effects, since it attracts mainly buyers who are looking to buy a car faster in the dealership to steal the sale in the coming years. Since it will not create new demand, it will not be long before growth starts again.
Reverse: "USSR leads the space race" that day in 1964.
The Soviet Union launches Voskhod 1 with cosmonauts Vladamir Komarov, Konstantin Feoktistov and Boris Yegorov on board. Voskhod 1 was the first spaceship to carry a crew of several people, and the two-day mission was also the first flight without space suits.
Neutral: Will Tesla lose his tax credit?
On the one hand, it seems that anyone who wants to buy a Tesla will still do it, on the other hand, it should not be uncomfortable for anyone to lose $ 7500. Will the sales slip or will we all move on?
Before you go! Share this content on any social media platform
SOURCES: CARSCOOPS BMWBLOG MOTORAUTHORITY
CLASSICCARS MOTOR1 JALOPNIK FOURTITUDE INSIDEEVS
DUPONTREGISTRY AUTONEWS OLDCARSWEEKLY
INDIANAUTOSBLOG CARCOMPLAINTS LUXUO AUTOPARTSWAREHOUSE
HYBRIDCARS CORVETTEBLOGGER MERCEDESBLOG