Category: Regulation

One of the more interesting features of the Kia EV9 is its available second-row captain’s chairs that can spin 180 degrees to face third-row seats in the back. It was prominently featured during the EV9’s global debut, but unfortunately, swivel seats won’t be available in North America. Bummer.

It’s not for a lack of wanting on Kia’s part. A company spokesperson confirmed with Motor1.com that the swivel feature doesn’t meet Federal Motor Vehicle Safety Standards. That explains why the option wasn’t mentioned in any capacity for the EV9’s recent North American debut at the 2023 New York Auto Show. A report from CarBuzz points out a specific regulation that could apply, though Kia doesn’t elaborate as to exactly how the EV9 misses the boat. We’ve certainly seen our share of upfitted camper vans with swivel seats in place, but alas, we aren’t legal experts. The bottom line is there are no EV9 with swivel seats headed for the States.

We suspect the EV9 will still find many interested buyers, if for no other reason than it offers three-row seating in a segment where competition is virtually nonexistent. Families wanting an EV with space for six or seven people presently have the Tesla Model X and Rivian R1S to choose from, and neither are what you’d call inexpensive. Kia’s SUV will be built in Georgia, meaning it will qualify for EV tax credits that could knock $7,500 off the sticker price. Speaking of which, Kia hasn’t officially announced EV9 pricing, but reports suggest it will start somewhere around $55,000.

The entry point will still have three rows of seats, but you can expect that price to reflect the single-motor version with a standard-range battery. For North America, that’s a 76.1-kilowatt-hour battery sending power to an electric motor driving just the rear wheels, producing 215 horsepower. Kia doesn’t have a range estimate for the base model, but it’s targeting 300 miles for the Long Range version using a single 201-hp motor with a 99.8 kWh battery.

There’s more information still to come on the EV9. Expect that to filter out through the summer leading up to its on-sale date in North America at the end of 2023.

Autonomous vehicle technology has changed a lot in a short period. Government regulators have been increasingly scrutinizing claims about the tech’s capabilities while companies have shifted to focus on developing and improving advanced driver-assist systems.

Ford is one of these companies, recently withdrawing a petition to federal regulators that had asked to skip seven safety standards for a small fleet of driverless vehicles aimed at commercial applications like local deliveries. In July 2022, Ford and General Motors asked the US National Highway Traffic Safety Administration to exempt these autonomous vehicles from requiring traditional controls like a steering wheel. According to a new Automotive News report, citing unpublished federal documents, Ford withdrew its petition last month.

A Ford spokesperson told the publication that the company pulled its petition as it focuses resources on developing more advanced driver-assist systems. Just a few weeks ago, the Blue Oval announced the creation of its new Latitude AI subsidiary to do just that, assembling a team that included 550 former Argo AI employees. Argo was the automaker’s previous autonomous vehicle endeavor, which shut down at the end of 2022. The company no longer needs the exemption for SAE Level 4 testing.

Latitude will support Ford’s BlueCruise driver-assistance technology, which the automaker launched two years ago. The SAE Level 2 tech first arrived in the 2021 Mach-E and 2021 F-150, using advanced camera and radar-sensing technologies to offer a hands-free driving mode. The tech also includes an in-car camera to monitor the driver to ensure they pay attention to the road, as fully autonomous vehicles still do not exist.

Tech companies and automakers have invested billions in autonomous vehicle technology over the last decade, but developing a reliable and safe product for the masses hasn’t happened yet. However, while some are pulling back from investing in pie-in-the-sky dreams, others are charging ahead.

Last year, General Motors, which has its own SuperCruise Assist system in several brands, announced that it would expand its autonomous robotaxi service Cruise to new markets in 2023, including Austin and Phoenix. It has also sought an exemption for its Origin autonomous vehicle that lacks manual controls as it pushes the tech ahead.

Porsche’s investment in e-fuels might pay off. Reuters reported this week that the European Union is considering allowing automakers to sell cars that run on synthetic fuel after the 2035 ban on combustion cars. According to the publication, the European Commission has already drafted the plans, but it’s not a done deal just yet.

It was reported last week that Germany and six European nations had allied to oppose the legislation, which was supposed to be voted on this month for final approval. The European Commission passed the ban at every opportunity last year, supporting the law. Earlier in March, Germany raised concerns about minimizing job losses while asking for assurances that future combustion cars could operate on e-fuels.

The draft proposal will allow for the sale of new cars with internal combustion engines if they use e-fuels. It’s also asking that such vehicles have the ability to recognize the type of fuel being used and prevent a car using a non-e-fuel from operating. However, that would force carmakers to develop new internal combustion engines, according to the report. The Commission and German authorities are trying to reach an agreement by the EU’s next summit on Thursday.

In November, the EU told member states that any proposal for e-fuel cars after 2035 would not come forward until after the bloc passes the ban. Any proposal must comply with the 2035 ban, said the bloc’s climate policy chief, Frans Timmermans.

Porsche is one of the more visible companies investing in e-fuels. In AugusEU couEt 2022, the company invested $75 million in a synthetic fuel holding company. Porsche started e-fuel production in December and used the first drops to fill up a 911. The facility is in its pilot phase, producing 130,000 liters (34,342 gallons) per year with the goal to increase it to 550 million liters (XXX gallons) per year by around 2027.

However, that’s just a drop in the bucket for worldwide fuel consumption, and it’s unlikely enough e-fuel production stations will come online in the next few years. Porsche isn’t the only automaker believing e-fuels might have a future. Lamborghini made similar comments about synthetic fuel last year, too.

The NHTSA has notified two registered importers from Michigan, Bisbee Importing and Metro Auto Importer, that they would no longer be allowed to legally import vehicles into the United States through the Registered Importer program. According to the agency, the revocation is due to “serious and systemic violations of federal safety requirements.”

The NHTSA also said that the two companies knowingly submitted false and misleading certifications of conformance for vehicles imported from Canada, as well as repeatedly failing to submit the required conformity packages. These compliance issues spanned multiple years and affected at least 29,000 vehicles for Bisbee and 2,900 vehicles for Metro Auto Importer.

“Registered importers are in positions of public trust,” said Ann Carlson, NHTSA’s Acting Administrator. “These companies have the responsibility to ensure that the vehicles they bring into the country meet all US safety standards and do not pose unreasonable risk to others on the road. When registered importers abuse that trust, NHTSA will act to protect the American public.”

While the revocation of their registered importer status prevents these companies from legally importing vehicles through the program, it does not absolve them of their responsibilities to ensure the safety of the vehicles they previously imported through the program.

As formerly registered importers, Bisbee Importing and Metro Auto Importer are still obligated to notify owners and remedy safety-related defects and noncompliances of the vehicles they imported. This means that they will need to take steps to address any safety issues with the vehicles they imported, which can include recalls or repairs.

The NHTSA worked closely with the Michigan Department of State and US Customs and Border Protection to investigate these companies and take action. The Michigan Department of State provided critical assistance to the investigations, including support from its field investigators, while US Customs and Border Protection was informed of the revocations.

In the foray into preserving the environment, automakers within the European Union (EU) now have a deadline to meet. By 2035, all new cars should have zero CO2 emissions.

However, not every member of the EU agrees with the decision. In a report by Reuters, Germany has formed an alliance with several European nations to oppose the said ban on internal combustion engines (ICE).

The seven countries involved are the Czech Republic, Slovakia, Italy, Poland, Romania, Hungary, and Germany – all of their transport ministers recently held a meeting to discuss what must change in the EU decision.

German transport minister Volker Wissing said in a statement that the EU’s proposal needs to change at once. He added that the approach seems wrong, pointing out that there’s a “climate-neutral way” to run ICE.

That said, it’s reported that the newly forged alliance is heeding for a separate category for ICE vehicles that can run on carbon-neutral fuels after 2035.

The EU’s latest move toward prohibiting the sale of new gasoline and diesel cars by 2035 happened last month. The new legislation requires automakers to reduce the CO2 emissions of new vehicles to zero by that year.

In addition, the law also mandates a 55 percent reduction in CO2 emissions for new cars and 50 percent for vans by 2030. The EU will eliminate its zero- and low-emission vehicle incentives by 2030. Manufacturers that produce between 1,000 and 10,000 new cars annually will have until 2036 to comply with the new rules, while manufacturers registering fewer than 1,000 new vehicles annually could remain exempt from the regulations.

Several automakers have already taken steps in testing the use of alternative fuels such as synthetic fuels and hydrogen power, which Porsche and Lamborghini are exploring. Even Toyota is experimenting with hydrogen-fueled combustion engines, starting with the Prius that’s supposed to arrive with the said setup by 2025.

The European Union took another step today toward banning the sale of new gasoline and diesel cars. The Parliament approved the new CO2 emissions reduction targets last year, with the latest vote finally pushing the legislation into law. It states that automakers must reduce CO2 emissions from new cars to zero by 2035.

Automakers will have another target to reach before the cutoff date. The law states that automakers must slash CO2 emissions by 55 percent for new cars and by 50 percent for vans by 2030. The next several years will also see the EU alter its zero- and low-emission vehicle incentives, removing them entirely by 2030.

Automakers that produce between 1,000 and 10,000 new cars a year could have until 2036 to meet the emissions targets. Manufacturers registering fewer than 1,000 new vehicles per year could continue to be exempt from the new rules.

The new law effectively bans the sale of new gasoline and diesel cars in the 27-member bloc. However, it doesn’t specifically mention banning internal combustion engines as the law dictates the emissions targets and not how they are achieved. This leaves open the door for synthetic fuels and hydrogen power.

Porsche began synthetic fuel production late last year, which is just one avenue for automakers looking outside of battery-electric vehicles. Even Lamborghini expressed interest in exploring alternative fuels, with Toyota experimenting with hydrogen-fueled combustion engines. The future isn’t set on BEVs just yet.

While 2035 is 12 years away, the new law will have global ramifications as automakers work to adhere to it. Many companies have already announced plans to transition their lineups exclusively to battery-electric vehicles. Ford announced in 2021 that it plans to sell only electric cars in Europe by 2030, supporting the bloc’s 2035 ban. Mini, Volkswagen, Jaguar, Bentley, and others are following a similar path toward electrifying their lineups.

In the US, states are banning the sale of gasoline and diesel cars in place of federal regulations. California approved a ruling in August 2022, followed by Oregon in December, effectively banning the sale of new combustion-powered cars. New York is another state implementing such a ban.

At the start of the year, the Internal Revenue Service (IRS) published vehicle classifications on its website, in relation to the new-for-2023 $7,500 tax credit and vehicle MSRP thresholds. This is, of course, available on certain electric and hybrid vehicles. 

The list was generally okay except for a few blunders, such as the Ford Escape and Cadillac Lyriq getting classified as non-SUVs. Of note, SUVs, trucks, and vans must have an MSRP of $80,000 or below to qualify for the tax credit. Other vehicle types have a lower $55,000 MSRP threshold.

That said, the misclassification didn’t affect the Escape PHEV, which starts below $40,000. The problem was with the Lyriq EV that starts above $60,000, which meant that it wasn’t qualified for the new tax credit. Cadillac wasn’t too happy about this and took the matter to the US treasury.

Fortunately, this has already been corrected by the IRS. The vehicle SRP classifications, which you can access through the source link below, have been revised as of this writing. It now shows the Escape and Lyriq having the 80 grand SUV price threshold.

These aren’t the only rectification employed on the list. The Tesla Model Y, which was classified as an SUV with seven-passenger seating but “other” in five-passenger trim, is now under SUV regardless of the trim.

Meanwhile, the VW ID.4, which was classified as both an SUV and “other” depending on its drivetrain, is also now under the SUV classification whichever trim level and drivetrain you’re getting.

As far as we’re concerned, the revamped vehicle classification on the IRS website is currently correct and as it should be.

However, it should be noted that some manufacturers have not submitted a list of specific models that are eligible despite entering into a written agreement with the IRS to become a “qualified manufacturer.” These brands include Honda, Hyundai, Jaguar, Kia, Mazda, Mercedes-Benz, Mitsubishi, Polestar, Porsche, Subaru, and Toyota.

General Motors has one last option remaining in its racketeering case against Fiat Chrysler Automobiles (FCA). That is, GM might have one more option. The Detroit-based automaker has filed for an audience with the US Supreme Court to review a case originally filed in 2019 and dismissed in 2020. Whether the nation’s highest court takes the case remains to be seen.

GM has filed numerous appeals in the case, which has roots back in 2017 with a scandal involving FCA and the United Autoworkers Union (UAW). GM’s latest appeal was turned down in August 2022, with a three-judge panel of the US 6th Circuit Court of Appeals upholding the previous decision. In the ruling, the panel indicated that even if GM’s claims were true, potential injury to the company was diminished.

According to The Detroit Free Press, GM’s new filing with the Supreme Court claims the conclusion of the appeals court defied “statutory text, precedent, and common sense” by holding GM couldn’t recover any damages. GM’s filing reportedly states the automaker “was the direct and intended victim of this quintessential racketeering scheme.”

The scheme in question long predates the Stellantis merger. GM alleges former FCA CEO Sergio Marchionne negatively affected the bargaining process for GM and the UAW, ultimately forcing GM to carry much higher labor costs. The claim further states that this was done to try and force a merger between FCA and GM.

Before his death in 2018, Marchionne was actively seeking a merger for FCA. At various points, rumors had Hyundai being a potential partner. A deal with Renault was in the works, but the Peugeot-Citroën conglomerate ultimately finalized a merger that created Stellantis. FCA still operates as the US arm of Stellantis.

In a statement to The Detroit Free Press, a Stellantis spokesperson said the lawsuit “is meritless and we will continue to defend ourselves vigorously and pursue all available remedies in response to this groundless lawsuit.”

Update: A spokesperson from a firm working with Volkswagen on this suit explained to Motor1.com that the issue isn’t about paying retail rates, but paying for extra time to complete warranty repairs.

In 2021, Illinois passed an update to its Motor Vehicle Franchise Act. Similar to laws in other states, House Bill 3090 called for major automakers with franchised dealerships to pay the same labor rate and time for warranty work as customers would pay once the warranty expires. The law went into effect at the beginning of 2022, and by the end of the year, it allegedly dinged Volkswagen for more than $10 million in extra warranty costs.

It prompted the German automaker to file a lawsuit in the US District Court for the Northern District of Illinois over the measure. According to Automotive News, the filing claims the law is unconstitutional, calling it “crony capitalism” that redistributes money without any public purpose “directly into the pockets of politically favored Illinois dealers.” The lawsuit reportedly names numerous state officials and members of the Illinois Motor Vehicle Review Board as defendants, and it asks the court to nullify the law.

Motor1.com contacted Volkswagen regarding the lawsuit. A company spokesperson declined to comment.

HB 3090 passed the Illinois House and Senate with strong bipartisan support. According to Illinois.gov, the measure also had the support of several organizations including the AFL-CIO, the Chicago Federation of Labor, and the Chicago Automobile Trade Association. Prior to HB 3090, the Motor Vehicle Franchise Act required automakers to reimburse for parts costs and/or a uniform time standard negotiated between dealers and automakers.

Per Automotive News, this typically meant technicians at dealerships weren’t fairly paid for their time on warranty repairs. However, there’s also no guarantee that technicians receive the full payment for warranty work. Dealership owners aren’t required to pass it on, but local unions reportedly have labor agreements in place to ensure it happens.

For now, it appears VW is the only automaker seeking legal action over HB 3090.

There are some curious vehicle classifications going on in the depths of the Internal Revenue Service (IRS). In short, the US Government may not feel the same way about your Ford Escape or Cadillac Lyriq as you do. And if you want to buy a Lyriq, that could be a costly distinction.

This recently came to light with the new-for-2023 $7,500 EV tax credit, available on certain electric and hybrid vehicles. Of course, restrictions do apply and the big one is whether you drive an SUV, truck, van, or “other” vehicle. That’s because SUVs and the like must have an MSRP of $80,000 or less to qualify. Others, meanwhile, have a considerably lower $55,000 MSRP restriction.

Peruse the IRS website and you’ll find plenty of information on the tax credit, including a list of vehicles that could qualify. The IRS also lists applicable MSRP limits for each model, which conveniently reveals how the feds categorize them. It shouldn’t surprise you that a Jeep Grand Cherokee 4xe is an SUV, a Ford F-150 Lightning is a truck, and a Nissan Leaf is, um, other.

But things aren’t as cut-and-dry with some models that should be no-brainers. The Ford Escape PHEV is listed with the lower $55,000 limit, despite being an SUV in the eye of pretty much everyone. The Lincoln Corsair is also considered other, but the Chrysler Pacifica has an $80,000 SUV limit. The VW ID.4 lives in both worlds according to Uncle Sam, depending on whether it’s equipped with all-wheel drive. Even more bizarre is the Tesla Model Y – classified as an SUV with seven-passenger seating but other in five-passenger trim.

For the most part, the classifications don’t really matter but then you have the Cadillac Lyriq. It’s billed as an SUV; it has the general shape and higher ride height of an SUV. But the IRS doesn’t consider it an SUV, and as such it’s subjected to the $55,000 MSRP limit. Meanwhile, the Lyriq starts just north of $60,000, excluding it from a not-insignificant tax cut on what seems like a technicality. Cadillac obviously isn’t too pleased about this. A company spokesperson told Reuters that concerns about vehicle classifications were being taken to the US Treasury.

Among the concerns is the fact that the US Environmental Protection Agency – another official US entity – classifies the Lyriq as an SUV.