The United States’ 18.4-cent-per-gallon tax on gasoline and 24.4-cent tax on diesel hasn’t changed since 1993. Despite this, the opinion that it should be hiked as a way of funding public works was nowhere near the White House’s official infrastructure strategy. But Donald Trump isn’t averse to the idea. In fact, he proposed a 25-cent increase to senators during a Wednesday meeting as a possible funding solution.

White House officials claim the president says “everything is on the table” in terms of finding a solution for America’s growing infrastructure problems. But how serious the rest of the Trump administration is about raising the fuel tax is debatable.  Read More >

Here at TTAC, we sometimes tap sister publications when a story arouses our interest. This piece, published by Hybrid Cars, details a battle brewing in the rustic state of Maine — one that pits hybrid and electric car owners against a government that says their cars, while good for the environment, aren’t good for road upkeep. As cars become greener and gas tax revenues dwindle, this won’t be the last battle.

A proposed new fee for hybrids and EVs in Maine could be the highest in the country, reducing clean vehicle adoption.

The Maine Department of Transportation wants to add an annual registration fee for hybrids and electric vehicles. $150 for hybrids, and $250 for electric models. The DOT is looking to impose the fee because it says drivers of the more energy efficient vehicles aren’t paying their fair share toward road maintenance.

“The owners of these types of vehicles are paying far less in the gas tax than other vehicle owners and they are using the highway system just like any others,” MDOT Manager of Legislated Services Megan Russo told the Portland Press-Herald. “There has got to be a way to try and capture revenue from those drivers who are using our road system.” Read More >

It’s no secret that the Trump administration will eventually come forward with a relaxed version of existing automotive fuel economy targets. Despite previously agreeing to them, most automakers have decided Obama-era goals are less than ideal and have reached out to the current president to take it easy on them — something he appears willing to do.

However, the White House is going to have to sell the decrease to numerous states that claim they won’t accept such a proposal, as well as a driving public that likely doesn’t want to spend more money on fuel than it has to. Fortunately, the administration has a strategy for this, and has tapped the National Highway Traffic Safety Administration for backup. It’s trying to prove that cutting fuel economy would actually make vehicles safer.  Read More >

Few things are sexier than a new road. The scent of fresh tar, smooth pavement that’s still warm to the touch — it’s an absolute feast for the senses. After roughly a year of waiting, President Trump finally seems poised to deliver on a bunch of them. The White House has just offered Congress a 53-page report detailing exactly how to rattle loose $1.5 trillion in investments into the country’s ailing infrastructure.

Maybe “poised” is the wrong word to use; how about we just say that he’s been interested in the idea that somebody should build them.

Expect Democrats to complain that the plan totally fails to create a dedicated funding stream to address the infrastructure issue and Republicans to gripe about how the small federal investment, set at $200 billion, is still far too large. It’s a beautiful system we have here.  Read More >

It pains me greatly, dear readers, to say what I’m about to say. Those of you who regularly follow my writing know how I lean when it comes to politics. However, given the current state of the auto dealership world, I have no choice. I gotta admit it — I agree with Elizabeth Warren on something.

Good ol’ P…er, Senator Warren and I both agree that there needs to be more oversight of the automotive lending business. Part of my day job is to educate new automotive advertising sales representatives about the car sales industry, and when I get to the part of the day where I tell them about how the Finance and Insurance office works, I always give them the following warning:

“Guys, if you don’t know about how car loans work, you’re about to get very, very angry.”

So I’ll give you the same warning, friends. I’m going to share about the predatory lending practices that go on behind the scenes, and I’ll tell you what I think should be done to stop it.

Read More >

Fiat Chrysler Automobiles might need the 2019 Ram 1500’s newly increased payload capability when it comes time to visit the bank.

As we’ve told you since the scandal broke a year ago, FCA could find itself on the hook for hefty penalties after the Environmental Protection Agency slammed it for failing to declare a bevy of auxiliary emission control devices on its 3.0-liter diesel V6 engine. With the 2017 and 2018 Ram and Jeep EcoDiesel models now in compliance, the question becomes: what does FCA pay to settle the fallout?

According to documents obtained by Bloomberg, it seems the monetary fine sought by the U.S. Justice Department might not fit in the pickup bed. Read More >

Daimler AG and BMW group suspended or moved several employees linked to a group that was commissioned for research that involved exposing monkeys and humans to potentially harmful gases. While the nature of these tests may not be extraordinary or illegal, the public response has been one of outrage.

Volkswagen suspended chief lobbyist Thomas Steg earlier this week for similar reasons, but the other automakers have now followed suit in the hopes of quelling public anger. The automakers haven’t kept silent on the matter, either. High-ranking executives have called the research repugnant, suggesting that the ethics employed by the European Research Group on Environment and Health in the Transport Sector (EUGT) were unacceptable.  Read More >

If California’s Jerry Brown is known for anything, it’s for continuing his familial legacy of governing the region for a weirdly long period of time and pressing for the proliferation of electric vehicles. While not all of the state’s EV initiatives have gone without a hitch (the LAPD’s unused fleet of battery powered BMWs springs to mind), Brown remains essential in keeping his neck of the woods on the forefront of alternative energy adoption.

Currently, California plans to place five million zero-emission vehicles on the road by 2030. The state previously set a target of 1.5 million ZEVs by 2025. That’s a massive increase, especially considering California only has about 350,000 examples currently plying its roads. Don’t worry, Brown has a plan to stimulate sales: $200 million worth of subsidies per year for the next eight years.  Read More >

Bipartisan legislation to “promote the safe development of autonomous vehicles” is currently being held up by a trio of Democrats, according to U.S. Senate Commerce Committee Chairman John Thune. While much of Congress is hoping to push the AV START Act through, Sen. Dianne Feinstein and two colleagues have blocked unanimous consent — stalling the bill’s swift progress by forcing a floor vote.

Thune, who sponsors Senate Bill 1,885, told reporters he hoped Feinstein and the other Democrats would see the light. “We could save a lot of lives,” Thune said, adding that 94 percent of car crashes are caused by human error. “It is cutting-edge technology, transformational in terms of the economy.”

However, the opposition isn’t convinced autonomous vehicles are at a point where it’s safe to roll them out en masse on public roads. Read More >

At this very moment, Chinese-based automaker GAC has a massive booth in the very center of the North American International Auto Show in Detroit. The company has expressed its intent to start importing its vehicles into the United States in 2019. However, 536 miles away (by car), Washington is bemoaning Chinese trade practices — a topic which might be extremely relevant for Guangzhou Automobile Group in the coming years.

On Wednesday, Democratic U.S. Senator Chuck Schumer and President Donald Trump separately criticized China’s trade policy. For automobiles, this translates into Chinese-built cars incurring a maximum 2.5 percent import tariff upon entering the United States, while U.S.-built cars sent East are hit with an average 25 percent tax.  Read More >

After what feels like an eternity, the Trump Administration finally feels confident in releasing its alternative to efficiency rules created under former President Barack Obama. The National Highway Traffic Safety Administration will provide the details on the new fuel economy standards for cars and light trucks sometime before the end of March.

This will be followed by partisan arguments as to why it’s the best and worst idea in the world. Read More >

There’s good news this morning for Fiat Chrysler worker in the United States, and it’s also good news for members of the Trump administration.

The automaker has announced plans to sink another $1 billion into its Warren Truck Assembly plant and bring production of its Ram Heavy Duty models to Michigan from Saltillo, Mexico. At the same time, some 60,000 hourly and salaried workers in the U.S. can expect a $2,000 bonus (paid in the second quarter of 2018) in recognition of “their continued efforts towards the success of the company.” The move also means 2,500 previously unannounced jobs for Michigan.

What’s behind all of this sudden goodwill? Recent changes to the country’s tax landscape, FCA claims.

“It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly,” said CEO Sergio Marchionne in a statement.

So, how does this production shuffle play out, and what’s the backstory here? Read More >

The Environmental Protection Agency and California Air Resources Board have approved emissions repairs for another 24,000 Audi vehicles equipped with the 3.0-liter diesel V6.

Back in May, a U.S. District Judge ruled that if Volkswagen Group failed to obtain government approval for fixes on its emissions-cheating diesels, it would be forced to offer owners buy-backs. Keen not to spend even more money as a result of dieselgate, the company went to work on a solution — resulting in an initial 38,000 Audi and Porsche vehicles spared from the wrecking yard.

The new approval covers 2014-2016 Audi A6 Quattro, A7 Quattro, A8, A8L and Q5 diesel models. The vehicles are to have their defeat device software removed and various hardware components replaced to ensure emissions compliance. VW says it has now has a remedy for about 75 percent of its tainted 3.0-liters, and hopes to have a solution for the remaining 20,000 soon.  Read More >

Formula E bid adieu to the 2016-17 season in Montreal on July 30th, but now Montreal is saying goodbye to Formula E.

The host city, which was on track to close out the FIA Formula E Championship next season,  closed a big green door on the electric street racing series today. Newly minted mayor Valérie Plante made the decision after reports arose of the extreme cost to the city’s taxpayers, not to mention a distinct lack of interest from those footing the bill.

The series was expected to be held next year and in 2019. Championed by former mayor Denis Coderre, Formula E was seen as a way for the city — where one can easily hail a Tesla taxi cab — to champion green initiatives.

Hold on a minute. A boondoggle involving large quantities of public dollars and the city of Montreal? Surely not… Read More >

Depending on who you talked to, the looming removal of the $7,500 federal tax credit for electric vehicles was either no big deal, or akin to the firebombing of Mother Earth. Much disagreement existed even among the ranks of environmentalists and EV proponents.

Well, worry no more, EV fans. You too, automakers.

The GOP’s revised tax bill, released late Friday, does not do away with the EV tax credit. The public will continue footing part of the bill for every Tesla Model 3, Chevrolet Bolt, etc, for the foreseeable future. At least until an automaker reaches its 200,000-vehicle cap.

In the wrestling match that ensued over the proposed elimination, it looks like the Senate pinned the House. Read More >