Well, our questions have been answered, and the first US-market pure electric vehicle, the Nissan Leaf, will be sold well under its Japanese-market price of $38k-$44k, coming in at $32,780. After a $7,500 federal tax break that brings the price to $25,280, and a California and Georgia tax break of another $5,000 will bring it within spitting distance of $20k (a $1,500 credit is available in Oregon). Full Nissan release after the jump.
Last November, Dutch lawmakers approved the first “pay-as-you-drive” tax system in Europe. A GPS gizmo, promptly dubbed “Spionagekastje” (“spy box,”) by the Dutch, was supposed to record where and when people would drive in the land of cheese, tulips, and koffie shops. With the information collected by the mandatory kastje, the Dutch government intended to fleece its motorized citizenry according to distance driven, along with size and engine of the car. That concept immediately launched a discussion in Europe whether other countries should be given the same Dutch treat. The Netherlands won’t be setting a trend in that matter. Dearly beloved, the Spionagekastje is dead. (Read More…)
Red light camera refunds will now reach $3.1 million in the city of South San Francisco, California. City officials decided this week that it had no choice but to refund tickets issued between January 28 and March 10 after being confronted by potential lawsuits over the city’s failure to abide by state law.
In January, the city admitted that every photo ticket that American Traffic Solutions (ATS) issued on its behalf between August 2009 and January 28, 2010 was invalid because the city council failed to ratify the contract. The council agreed to refund the tickets, nearly 3000 worth $446 each, and pay for the traffic schools motorists were forced to take. While generous, this move was not enough.
For the first time, monthly car sales in India exceeded 150,000 units according to February numbers released by SIAM, the Society of Indian Automobile Manufacturers [via The Economic Times of India]. Those figures represent a 33% improvement over Feb. 2009. Analysts attribute the sales bump to people pulling the trigger in advance of expected higher taxes in the national budget. Indian automakers anticipate that the increased demand will slow as prices rise due to higher interest rates and new emissions standards.
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Diesel drivetrains have long been a crucial component to the European market’s forbidden-fruit appeal for American enthusiasts, ranking right up with station wagons and manual transmissions on the list of under-offered features in the American market. But there are signs now that Europe’s longtime infatuation with oil-burners might be drawing to a close (and not just for biodiesel). The Telegraph reports that Europe-wide diesel market share has fallen from 52 percent to 46 percent in the last 12 months, with the UK’s share dropping from about 43 percent to about 41 percent. Much of this trend is being driven by growth in the low-cost car segment, where the higher cost of diesels make them less competitive. Fears of higher repair costs for more complicated clean-diesel drivetrains and a relative undersupply of diesel fuel aren’t helping either. And just as diesel is faltering in its most important consumer market, the EU is eying a tax increase that Reuters UK says “could boost demand for gasoline at the expense of diesel.”
Europe, and especially Germany, reports declining diesel dependency. From a nearly 50 percent share a few years ago, the share of diesel driven cars in Germany dropped to 31 percent in 2009. Two reasons: The favorable taxation of the oil had been scrapped. And speaking of scrapped, the “Abwrackprämie, or cash for clunkers, had favored a trend towards low displacement gasoline burners. (In January, the diesel share climbed back to 40 percent in Deutschland.) Badly mauled were the manufacturers of bio (a.k.a. “veggie”) diesel. (Read More…)
British officials are making plans to impose a tax on speeding and parking citations this year in an effort to raise money to cover a growing budget deficit. Secretary of State for Justice Claire Ward announced the plan in a written answer to a question posed by Member of Parliament Greg Knight. The new revenue would be labeled as a “victims’ surcharge.”
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Nissan Motor Co. failed to declare some $700m in income with the Japanese tax-san during a three-year period through March 2007, the Nikkei [sub] reports today.
The Tokyo Regional Taxation Bureau has sent Nissan an order to pay back taxes, including unspecified billions of Yen in penalties. Nissan has appealed.
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As I noted yesterday, the intersection of automobiles and politics is a difficult area of analysis. In the United States, where motorists don’t face the daily challenges they do in Russia, discussions of politics in an automotive forum too often gets overwhelmed by larger political battles. Before you know it, a conversation about the future of electric cars can turn into a debate on military and foreign policy, and an auto-industry bailout can be justified by virtue of its small size relative to the bank bailout. In short, everything happens within a context, and politics is all about context. TTAC has always waded into political issues based on their relevance to cars, motorists, consumers and the industry, and we’ve held some fascinating explorations of political topics ranging from red-light and speed cameras and foreign oil dependence to anthropogenic climate change, bailouts and pay-per-mile tax schemes. In the interest of providing the right balance of big-picture and street-level issues in our coverage, we’re curious: what car-related political issues fascinate, concern or perplex you most?
Battery electric vehicles are widely seen as the most promising long-term automotive greentech, but they’re also hardly poised to take over the industry. A host of issues are keeping EVs out of mainstream acceptance, ranging from battery capacity issues to the lack of a charging infrastructure. For a group of electric transportation-sector businesses though (including Nissan, which is heavily hyping its Leaf EV), it’s nothing $124b in government support won’t fix. A press release on the Electrification Coalition’s “Roadmap” explains:
The Electrification Roadmap presents a bold and specific vision: By 2040, 75 percent of light-duty vehicle miles traveled in the United States should be electric miles. As a result, oil consumption in the light-duty fleet would be reduced by more than 75 percent, and U.S. crude oil imports could effectively be reduced to zero… “It is absolutely crucial that all of the key elements of an electrified transportation system are introduced in a highly coordinated fashion and in a way that is effective, affordable, and appealing to actual American consumers,” [David Crane, President of NRG Energy] said. “Introducing all of the separate elements, from cars to infrastructure, simultaneously in select communities across the country will move electrification beyond the early adopters; policymakers will witness the national benefit derived from a new kind of transportation system while consumers will benefit firsthand from a new kind of driving experience.”
Worried about increasingly efficient cars and dwindling tax revenue at the pump, Dutch lawmakers approved the first “pay-as-you-drive” tax system in Europe. Of course, the dwindling revenue is not the official reason given. The official intent is “to protect the climate and to reduce traffic jams,” reports the Deutsche Welle. Now who can be against noble causes such as those?
Nobody even mentions gasoline taxes, the legalized form of highway robbery in Europe. The pay-as-you-drive system will replace the old system that taxes ownership. That will go. The fuel tax remains. Dutch citizens are taxed twice. At the pump and by the kilometer.
Beginning in 2012, Dutch motorists will pay approximately 3 Euro-Cent per driven kilometer, until 2018, the amount will rise to 6.7 Cent. The actual costs vary according to size and engine of the car. A Renault Twingo will cost you 1.4 Cent per km, an Audi A8 will get the Dutch government 16.6 Cent per klick.
And how will the government know?
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North Dakota’s House of Representatives has voted down a measure which would have exempted the sale or lease of a Detroit-branded vehicle from the state’s five percent excise sales tax. The Chicago Tribune reports that the measure, which would have cost the state $25.9m, was defeated by a convincing 64-29 vote. “If we do anything as far as tax exemptions, we should have a greater good in mind,” says Rep. Jon Nelson, R-Rugby. “The passage of this bill . . . we don’t expect anything from (the Detroit auto companies), except that they’re going to sell more of the same old, same old. . . . Every technology in the world has grown, doubled or tripled or quadrupled, in the last 20 years, but the pickup I drive gets the same mileage as one 30 years ago,” he said. “Things like that . . . they haven’t progressed, and that is the reason that U.S. auto makers are in . . . the shape they’re in.”
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