A consequence of tax reform: the end of the $7,500 Tax Credit and Electric Car Incentives

So Tesla shares are taking a hit right now, in part because of production and labor problems, in part because the  Republican Tax Plan as it now stands would end the $7,500 tax credit. For some time the federal government has been forcing technological change, not as forceful as some European governments, but still significant. If this measure goes through as currently written, the long term consequence for the American EV automotive industry verses European and Asian competitors would be undoubtedly significant. China is moving very fast in this area and rightfully so, given air quality issues. Europe is definitely moving away from the internal combustion engine, a rational long term move given the fact act the continent has so little oil resources.
The upshot of all of this is that we are in a time of potentially enormous global power transitions. Make no mistake about that. To "Make American Great Again" demands more than banter and emotion. We need analytical thinking in this age of complexity.

Below is a news release from today that illustrates European long-term EV Infrastructure planning.

Launching approximately 400 HPC stations by 2020, IONITY will make long-distance journeys easier and marks an important step for electric vehicles. Based in Munich, Germany, the joint venture is led by Chief Executive Officer Michael Hajesch and Chief Operating Officer Marcus Groll, with a growing team, set to number 50 by the start of 2018.

“The first pan-European HPC network plays an essential role in establishing a market for electric vehicles. IONITY will deliver our common goal of providing customers with fast charging and digital payment capability, to facilitate long-distance travel,” said Hajesch.

The network will use the European charging standard Combined Charging System

A total of 20 stations will be opened to the public this year, located on major roads in Germany, Norway and Austria, at intervals of 120 km, through partnerships with “Tank & Rast”, “Circle K” and “OMV”. Through 2018, the network will expand to more than 100 stations, each one enabling multiple customers, driving different manufacturer cars, to charge their vehicles simultaneously. With a capacity of up to 350 kW per charging point, the network will use the European charging standard Combined Charging System to significantly reduce charging times compared to existing systems.

The brand-agnostic approach and Europe-wide distribution is expected to help make electrified vehicles more appealing.

Choosing the best locations takes into account potential integration with existing charging technologies and IONITY is negotiating with existing infrastructure initiatives, including those supported by the participating companies as well as political institutions. The investment underlines the commitment that the participating manufacturers are making in electric vehicles and relies on international co-operation across the industry.

The founding partners have equal shares in the joint venture

The founding partners, BMW Group, Daimler AG, Ford Motor Company and the Volkswagen Group, have equal shares in the joint venture, while other automotive manufacturers are invited to help expand the network.

“The launch of IONITY represents a breakthrough in the move towards a comprehensive rapid charging infrastructure in Europe”, says the Chairman of the Executive Board of Porsche AG, Oliver Blume. “Creating a functioning charging infrastructure is necessary for ensuring electromobility is accepted and further expanded. With the rapid charging network from IONITY, we are ensuring that our customers can use electric cars on long journeys without compromising on convenience. These high-charging stations are capable of charging our Mission E to 80 per cent in just 15 minutes – equivalent to a range of 400 kilometres. The Mission E is Porsche’s first purely electric sports car. It will arrive on the market in 2019, bringing e-mobility into everyday use.”

Share this post