Auto News for November 15th, 2011

Deficit Super Committee Threatens to Cut Subsidies for Electric Vehicles

There’s no justifiable evidence in the current political ecosystem to allow the adjective “super” to be applied to a government committee. They don’t do anything “super” in the way that normal people use the term. It’s a dumb use of the word.

Beyond my semantic protests, this committee (I refuse to capitalize committee or use super) has important decisions to make about subsidies as they work to trim $1.2 trillion in federal spending. And a logical target for those cuts is the currently under-bought electric vehicle industry. The $7500 buyer tax-credit should be safe because there’s a 200,000 vehicles sold threshold per manufacturer before it expires. But…it’ll be hard to convince people to buy these cars if the charging infrastructure isn’t in place, and that’s exactly what is threatened. A 30 percent infrastructure installation credit (to individuals and businesses) isn’t guaranteed to be extended. This isn’t the only incentive, though, not by far. Over 500 grants, tax rebates, loans and other programs are available for consumers to access, which all represent easy cuts for the committee, mostly because of low industry sales.

Why cut these subsidies if they’re based on eventual purchases (citizens aren’t sent subsidy checks before they buy a car)? Oh…because the budget has to pass Congress so we maintain our AAA rating. If the logic of this feels bizarre to you too, good.

At least the Texas state government (via the Texas DMV) voted down a proposal for license plates adorned by the Confederate flag.

Love that government.