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  • One Tech Tip: Modern cars are spying on you. Here’s what you can do about it

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    While driving to a new restaurant, your car’s satellite navigation system tracks your location and guides you to the destination. Onboard cameras constantly track your face and eye movements. When another car veers into your path, forcing you to slam on the brakes, sensors are assisting and recording. Waiting at a stoplight, the car notices when you unbuckle your seat belt to grab your sunglasses in the backseat.

    Modern cars are computers on wheels that are becoming increasingly connected, enabling innovative new features that make driving safer and more convenient. But these systems are also collecting reams of data on our driving habits and other personal information, raising concerns about data privacy.

    Here is what to know about how your car spies on you and how you can minimize it:

    How cars collect data

    It’s hard to figure out exactly how much data a modern car is collecting on you, according to the Mozilla Foundation, which analyzed privacy practices at 25 auto brands in 2023. It declared that cars were the worst product category that the group had ever reviewed for privacy.

    The data points include all your normal interactions with the car — such as turning the steering wheel or unlocking doors — but also data from connected onboard services, like satellite radio, GPS navigation systems, connected devices, telematics systems as well as data from sensors or cameras.

    Vehicle telematics systems started to become commonplace about a decade ago, and the practice of automotive data collection took off about five years ago.

    The problem is not just that data is being collected but who it’s provided to, including insurers, marketing companies and shadowy data brokers. The issue surfaced earlier this year when General Motors was banned for five years from disclosing data collected from drivers to consumer reporting agencies.

    The Federal Trade Commission accused GM of not getting consent before sharing the data, which included every instance when a driver was speeding or driving late at night. It was ultimately provided to insurance companies that used it to set their rates.

    Be aware

    The first thing drivers should do is be aware of what data their car is collecting, said Andrea Amico, founder of Privacy4Cars, an automotive privacy company.

    In an ideal world, drivers would read through the instruction manuals and documentation that comes with their cars, and quiz the dealership about what’s being collected.

    But it’s not always practical to do this, and manufacturers don’t always make it easy to find out, while dealership staff aren’t always the best informed, Amico said.

    Privacy4Cars offers a free auto privacy labeling service at vehicleprivacyreport.com that can summarize what your car could be tracking.

    Owners can punch in their car’s Vehicle Identification Number, which then pulls up the automaker’s data privacy practices, such as whether the car collects location data and whether it’s given to insurers, data brokers or law enforcement.

    Tweak your settings

    Data collection and tracking start as soon as you drive a new car off the dealership lot, with drivers unwittingly consenting when they’re confronted with warning menus on dashboard touch screens.

    Experts say that some of the data collection is baked into the system, you can revoke your consent by going back into the menus.

    “There are permissions in your settings that you can make choices about,” said Lauren Hendry Parsons of Mozilla. “Go through on a granular level and look at those settings where you can.”

    For example, Toyota says on its website that drivers can decline what it calls “Master Data Consent” through the Toyota app. Ford says owners can opt to stop sharing vehicle data with the company by going through the dashboard settings menu or on the FordPass app.

    BMW says privacy settings can be adjusted through the infotainment system, “on a spectrum between” allowing all services including analysis data and none at all.

    You can opt out

    Drivers in the U.S. can ask carmakers to restrict what they do with their data.

    Under state privacy laws, some carmakers allow owners across the United States to submit requests to limit the use of their personal data, opt out of sharing it, or delete it, Consumer Reports says. Other auto companies limit the requests to people in states with applicable privacy laws, the publication says.

    You can file a request either through an online form or the carmaker’s mobile app.

    You can also go through Privacy4Cars, which provides a free online service that streamlines the process. It can either point car owners to their automaker’s request portal or file a submission on behalf of owners in the U.S., Canada, the European Union, Britain and Australia.

    … but there will be trade-offs

    Experts warn that there’s usually a trade-off if you decide to switch off data collection.

    Most people, for example, have switched to satellite navigation systems over paper maps because it’s “worth the convenience of being able to get from point A to point B really easily,” said Hendry Parsons.

    Turning off location tracking could also halt features like roadside assistance or disable smartphone app features like remote door locking, Consumer Reports says.

    BMW advises that if an owner opts to have no data shared at all, “their vehicle will behave like a smartphone in flight mode and will not transmit any data to the BMW back end.”

    When selling your car

    When the time comes to sell your car or trade it in for a newer model, it’s no longer as simple as handing over the keys and signing over some paperwork.

    If you’ve got a newer car, experts say you should always do a factory reset to wipe all the data, which will also include removing any smartphone connections.

    And don’t forget to notify the manufacturer about the change of ownership.

    Amico said that’s important because if you trade in your vehicle, you don’t want insurers to associate it with your profile if the dealer is letting customers take it for test drives.

    “Now your record may be affected by somebody else’s driving — a complete stranger that you have no relationship with.”

    ____

    Is there a tech topic that you think needs explaining? Write to us at [email protected] with your suggestions for future editions of One Tech Tip.

    ___

    This story has been corrected to show that the Mozilla representative’s first name is Lauren, not Laura.

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  • CNBC Daily Open: Banks might not love lower rates unconditionally

    CNBC Daily Open: Banks might not love lower rates unconditionally

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    JPMorgan signage outside a Chase bank branch in New York, US, on Thursday, Jan. 12, 2023. 

    Stephanie Keith | Bloomberg | Getty Images

    This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Clawing back losses
    U.S. markets were
    mixed on Tuesday. The S&P 500 and Nasdaq Composite rose, buoyed by Oracle’s 10% surge and technology stocks recouping some losses, while the Dow slipped. Europe’s Stoxx 600 index lost 0.54%, with autos dropping 3.8% as supplier Continental fell 10.5% and BMW plunged 11.15%.

    Big price reports
    The U.S. consumer price index for August comes out later today, while the producer price index, which measures prices at the wholesale level, will be released a day later. They’re the last major economic data the Federal Reserve will receive — and hence influence its decision on the size of cuts — before its meeting next week.

    Endgame for Basel regulations
    The Basel Endgame regulation, introduced in July 2023, was meant to increase capital requirements for big banks by around 19%. On Tuesday, however, a Federal Reserve official announced that regulatory institutions have agreed to resubmit the proposal, reducing the increase in capital requirement to just 9%.

    Risk of stagflation
    Jamie Dimon, CEO of JPMorgan Chase, said stagflation is a possibility for the U.S. The government’s budget deficit and high spending on infrastructure works are inflationary forces, he said. Separately, JPMorgan shares fell 5.19% after the bank’s president Daniel Pinto lowered expectations for next year’s net interest income.

    [PRO] Underwhelming Apple Intelligence
    Apple announced new iPhones yesterday. But Wall Street was more focused on the company’s artificial intelligence offerings, given their potential to start an iPhone-upgrade cycle and establish a new source of revenue. Unfortunately, analysts came away underwhelmed.

    The bottom line

    Everyone loves lower interest rates.

    As rates fall, borrowing becomes cheaper. For the consumer, that’s most felt in areas like housing; for companies, it tends to boost spending on expansion and investment.

    Those acts trigger a virtuous cycle of spending, boosting consumption and growth, which in turns increases employment. The economy loves lower rates too and swells up.

    There’s one industry, however, that generally enjoys higher interest rates: banking.

    One way banks make money is through the net interest income. That’s the difference between the interest rate they charge on loans and the rate they offer on savings. As rates rise, banks can raise the former, which is a revenue source, while keeping the latter, a cost, low.

    With rate cuts looming on the horizon, however, that age of abundance is coming to an end for big banks.

    JPMorgan poured cold water on the market’s expectation of around $90 billion for NII in 2025. That number “is not very reasonable” because the Fed will cut rates, said JPMorgan President Daniel Pinto.

    If the biggest bank in the U.S. thinks it can’t keep loan rates high, it’s hard to imagine smaller banks can maintain juicy NII of the previous years.

    Investors didn’t take JPMorgan’s caution warmly. Its shares lost around 5% and weighed down the Dow Jones Industrial Average, which declined 0.23%.

    On the other hand, the S&P 500 rose 0.45% and the Nasdaq Composite added 0.84%.

    With rate cuts on the horizon, banks might experience a dip in NII revenue — but many are likely to see revenue and sentiment rise.

    – CNBC’s Jeff Cox, Pia Singh and Brian Evans contributed to this story.

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  • Tesla drivers had highest accident rate, BMW drivers most DUIs study finds

    Tesla drivers had highest accident rate, BMW drivers most DUIs study finds

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    Tesla Model Y, equipped with FSD system. Three front facing cameras under windshield near rear view mirror. 

    Mark Leong | The Washington Post | Getty Images

    Tesla drivers in the U.S. were involved in accidents at a higher rate than drivers of any other brand of vehicle over the past year, according to a new study of 30 automotive brands by LendingTree.

    The researchers analyzed quotes from people looking to insure their own vehicles, and did not include accident or incident data involving drivers of rental cars, a spokesperson for LendingTree told CNBC by email on Tuesday.

    The study said, “It’s hard to nail down why certain brands may have higher accident rates than others. However, there are indications that certain types of vehicles attract riskier drivers than others.”

    With 24 accidents per 1,000 drivers during the period from mid-November 2022 to mid-November 2023, Tesla drivers clocked in with the worst accident rate in the U.S., followed by Ram drivers who were involved in about 23 accidents, and Subaru drivers who were involved in about 21 accidents per 1,000 drivers during the year.

    By contrast, drivers of Pontiac, Mercury and Saturn vehicles were all involved in fewer than 10 accidents per 1,000 drivers during the period of the study.

    BMW drivers were the most likely to engage in driving under the influence, the researchers found. They were involved in about 3 DUIs per 1,000 drivers in a year, about twice the rate of DUIs among Ram drivers, who were the second worst drivers in this regard.

    For driving incidents overall, which included not only accidents but also DUIs, speeding, and other citations, Ram drivers had the highest incident rate, while Tesla drivers had the second-highest incident rate in the U.S.

    Accidents, DUIs, speeding and other citations can all lead to higher insurance rates for drivers. Lending Tree found that one speeding ticket can bump up the price of vehicle insurance by 10% to 20%, accidents can increase rates by around 40%, while DUIs can lead to a rate increase of 60% or more.

    The Lending Tree findings about drivers with the highest rates of accidents and incidents by vehicle brand followed an Autopilot software recall by Tesla in the U.S. that impacts some 2 million of the company’s electric vehicles.

    Tesla EVs come standard with an advanced driver assistance system (ADAS) marketed as Autopilot. The company sells more extensive driver assistance packages called Enhanced Autopilot and Full Self-Driving (or FSD) options in the U.S. as well. Those who pay for FSD can also test software features that are not fully debugged yet on public roads.

    Tesla’s ADAS technology is meant to help drivers with steering, acceleration and braking. CEO Elon Musk claimed in 2021 that a Tesla driver using Autopilot was about 10 times less likely to crash than a driver of the average car. While Tesla publishes its own safety reports, the company has not allowed third-party researchers to evaluate their data to confirm or debunk such claims.

    Musk has also touted Tesla’s systems as if they are already, or will soon be, safe to use hands-free — yet Autopilot and Full Self-Driving systems still require Tesla drivers to remain attentive to the road and ready to steer or brake in response at all times.

    A two-year investigation by the National Highway Traffic Safety Administration (or NHTSA) found that Tesla’s Autosteer feature, which is part of Autopilot and FSD, had safety defects that may cause an “increased risk of a collision.” NHTSA said it found that Tesla drivers can too easily misuse the cars’ Autosteer feature and may not even know whether it is engaged or switched off.

    According to filings with the federal vehicle safety regulator, Tesla did not concur with NHTSA’s findings but agreed to conduct a voluntary software recall, and promised to make safety improvements to Autosteer with “over-the-air” updates. The updated software will nag drivers to pay attention to the road more often, and lock drivers out of using Autopilot if Tesla’s systems detect irresponsible use.

    Tesla did not respond to a request for comment about the Lending Tree study and why the accident and incident rates may have been so high among Tesla drivers in the U.S. over the past year.

    Read the full Lending Tree study of the best and worst drivers in the U.S. by auto brand, here.

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  • Seat massages, smartphones and driverless features: Automakers turn to tech to take on Tesla

    Seat massages, smartphones and driverless features: Automakers turn to tech to take on Tesla

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    Amazon was among a number of technology companies at the IAA motor show in Munich. The presence of Amazon, Qualcomm, Samsung and other tech giants underscores how traditional automakers are looking to bolster the tech in their cars.

    Arjun Kharpal | CNBC

    MUNICH — You’d be forgiven for thinking that the IAA, one of the world’s biggest motor shows, is actually a technology conference, after tech giants like Amazon, Qualcomm and Samsung all showed up for this year’s event.

    Their presence underscores demand for traditional automakers to boost the technology in their vehicles, from software to hardware, as they look to catch up with Tesla in the electric car future. Ramping up technology features is also essential to meet buyer expectations in China.

    “Tesla and the Chinese start-ups. This is the two-way force they [traditional automakers] are experiencing, driving them to have more user experience in the car,” Mohit Sharma, automotive research analyst at CCS Insight, told CNBC.

    They can’t do it alone. Carmakers are looking at tech firms for help, while also trying to work on items like software in house.

    Part of Tesla’s global success has come down to its technology in a number of areas, from batteries to Autopilot — its advanced driver assistance system (ADAS), which uses semi-autonomous driving features. The screen within Tesla cars is also akin to that of a smartphone.

    Those features are what rival automakers are trying to build and get ahead on.

    Carmakers are developing their own operating systems

    There are two major operating systems in the smartphone sphere — Google’s Android and Apple’s iOS. That’s not the case in the car world, when it comes to the ever popular infotainment systems and screens.

    Auto firms are now focusing on developing their own operating systems, so that using car screens more closely resembles working with the apps of a smartphone.

    To that end, Mercedes-Benz revealed further details at the IAA about its self-developed operating system called MB.OS, which will help power various features from the giant screen across the dashboard to the voice assistant in its upcoming EVs.

    Swedish EV player Polestar this year created a joint venture with Xingji Meizu — a smartphone maker owned by Chinese auto giant Geely — and plans to launch its own smartphone in December, when the Polestar 4 car begins delivery to customers. Meizu is making an operating system for Polestar cars based on its own product, called FlyMe. The idea is that users would be able to have a seamless experience between the smartphone and Polestar’s operating system in the company’s cars.

    U.S. chipmaker Qualcomm was also in attendance at IAA. The company is making a big push into the automotive space, where its chips can be used to help power artificial intelligence applications within vehicles. One example it showed was a car assistant that could find a recipe for chicken enchiladas and add the ingredients to a shopping list. 

    It’s not just about the screen — automakers are also looking into using all parts of the car to display information. BMW said the Neue Klasse EV models it unveiled on Saturday will have what it calls Panoramic Vision, a heads-up display which projects information on the windscreen at the driver’s eyeline.

    To make the drive as comfortable as possible, U.S. EV maker Lucid showed off the massage feature of the seats in its Air Midnight Dream Edition car.

    Driverless features push

    Xpeng will be entering the German market, Chinese EV-maker's president says

    Tech is key in China

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  • Tesla rival Polestar plans own smartphone launch alongside its first electric vehicle in China

    Tesla rival Polestar plans own smartphone launch alongside its first electric vehicle in China

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    A Polestar 4 electric SUV is on display during the 20th Shanghai International Automobile Industry Exhibition at the National Exhibition and Convention Center (Shanghai) on April 18, 2023 in Shanghai, China.

    Vcg | Visual China Group | Getty Images

    Launching smartphones with EVs

    Meizu is not a major smartphone player in China with companies like Apple and Oppo among the biggest. And the Polestar smartphone would not be an attempt to grow market share.

    Instead, the unusual step of an EV company launching a smartphone comes from a desire from automakers to make the car like a mobile phone on wheels.

    “Where you have an opportunity to link these two worlds, without any border … then you can really have a seamless transition,” Ingenlath said.

    You can imagine a world where you’re using an app on your phone and you enter the car and that same app is displayed on the car’s dashboard screen, for example.

    “I still have problems to get, you know, an SMS displayed,” Ingenlath said of the frustrations with current technology.

    Ingenlath added that the phone will be a “premium” device. Meizu is known in China for more mid-tier devices. This will help Meizu push into the high-end device market for handsets too, Ingenlath said.

    While it is still unusual for car companies to launch phones, the idea is gaining some traction. Chinese EV start-up Nio plans to launch its first self-developed mobile phone in September.

    There are lots of reasons this could make sense specifically in the world’s second largest economy.

    It’s not just good enough to bring a great European design to China, you have to be very, very special about what you offer to the market when it comes to software.

    Thomas Ingenlath

    CEO of Polestar

    Firstly, there is no Google Android mobile operating system. This means that automakers can customize the operating system on their phone and the car to sync up. For example, Meizu has its own operating system called FlyMe. And the company is making an operating system for Polestar cars based on this.

    The smartphone that Polestar releases is also likely to have a similar OS which will make integration seamless.

    “It’s not just good enough to bring a great European design to China, you have to be very, very special about what you offer to the market when it comes to software,” Ingenlath said.

    “Many OEMs are following Geely and potentially other future players such as Apple if they come up with their own car with their smartphone to provide a holistic and tighter connected experience in every aspect of mobility,” Neil Shah, vice president of research at Counterpoint Research, told CNBC.

    An OEM is an original equipment manufacturer and refers to car manufacturers.

    Shah said the smartphone would also allow Polestar to bundle software, apps, services and features such as remotely controlling or turning on the car with a phone.

    Launching a phone could also help carmakers learn more about their customers’ habits, Shah added.

    Polestar 4 ‘more premium’ than Tesla’s Model Y

    Why the EU is getting tough on Big Tech

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  • Chinese electric carmakers ramp up push overseas, setting up clash with U.S., European auto giants

    Chinese electric carmakers ramp up push overseas, setting up clash with U.S., European auto giants

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    BYD launched the BYD Seal in Europe at the IAA auto show in Munich, Germany. The electric sedan has a starting price of 44,900 euros ($48,479).

    Arjun Kharpal | CNBC

    Munich, GERMANY — The IAA in Munich, Germany is one of Europe’s most high-profile auto shows. And it was dominated by Chinese electric car firms looking to expand their presence on the continent and challenge incumbents from BMW to Ford in the new era of battery-powered vehicles.

    Chinese start-ups and players had some of the biggest stands at the event with high-profile press conferences and vehicle launches, underscoring their intention to make a splash in the European market.

    China, the world’s largest EV market, has seen a tidal wave of electric car companies pop up in the last few years, driven by government subsidies and venture capital funding. But a slowing market at home, due to tepid consumer spending after Covid-19 restrictions were lifted, coupled with an attractive market in Europe, has seen Chinese firms launch cars abroad and expand their footprint.

    “Europe is one of the largest (second after China) mass market vehicle markets … If the Chinese EV makers want to secure a growth path beyond their local market, its very logical to look at Europe,” Daniel Roeska, senior research analyst at Bernstein Research, told CNBC via email.

    Roeska added that Europe, with its “stringent de-facto” ban on combustion engine cars in 2035, “is pushing the market faster towards EVs at a time when most EU brands … do not have a perfect offering yet, making market share gains easier.”

    Many of the European carmakers have been seen lagging in their push into EVs at a time when Chinese players have launched dozens of new vehicles.

    China makes mark in Munich

    The ambitions of Chinese EV firms were on display at the IAA.

    On the morning of the first day, Leapmotor, a Chinese firm headquartered in Hangzhou, announced plans to bring its C10 sports utility vehicle, or SUV, to European markets next year. In the next two years, the company said it plans to introduce five “globally-oriented” products across the world.

    “All of Leapmotor’s subsequent products will be designed and developed with a global mindset and adhere to global standards,” Leapmotor CEO Zhu Jiangming said at a press conference on Monday.

    Chinese EV maker Leapmotor launched its first car for the international markets called the C10.

    Arjun Kharpal | CNBC

    Meanwhile, BYD, the carmaker backed by Warren Buffett, launched its Seal electric sedan for Europe on Monday, starting at 44,900 euros ($48,479). For comparison, in Germany, Tesla’s Model 3, starts at 42,990 euros.

    And there were more announcements about continued expansion into new territories.

    Xpeng said Monday it will expand sales of its cars into the German market in 2024. The company currently sells its P7 sedan and G9 SUV in Norway, Sweden, Denmark and the Netherlands. And Brian Gu, president of Xpeng, said the company plans to bring its latest car, the G6, to Europe next year, underscoring the Guangzhou-headquartered firm’s global push.

    “We recognise Germany is the most important and the highest standard market for all” carmakers, Gu told CNBC in an interview Monday.

    “And to be able to be here and then really made our make our product available to the customers in this market, really will help us further penetrate the continental European market. We have ambitions for broader market coverage internationally.”

    The entrance of Chinese firms into Europe is seen as a threat to big automakers who have been perceived to be moving too slow on EVs.

    Analysts at Bernstein said in a note published in June that if Chinese carmakers enter the market “as per normal,” then incumbents may concede up to 5% market share by 2030. But these new entrants could grab up to 20% market share if their entrance into Europe is more aggressive than expected, they added.

    Price war and rising competition

    But the Chinese companies themselves face rising competition from within, but also outside of their home market. Tesla sparked a price war earlier this year which has put pressure on profits and margins of some of China’s smaller players like Xpeng.

    Meanwhile, to fend of rising competition and catch up with Tesla, BMW and Mercedes both launched a dedicated electric car platform that will underpin their vehicles for the coming years, adding further potential headwinds that are not lost on these Chinese challengers.

    “Well, it is definitely not easy,” Xpeng’s Gu said of the push from traditional carmakers into EVs.

    “I think as a young company, we also are trying to learn from … each step that we take, as well as learn from the competition, the partners that we have. But we have confidence in our technology, we have confidence in our product,” Gu added.

    Chinese automaker BYD had one of the biggest stands at the IAA show in Munich, Germany in 2023.

    Arjun Kharpal | CNBC

    Another challenge for the Chinese firms is building brand recognition, an exercise that could stretch marketing budgets and take a long time to do.

    “Brand is a sizeable issue, but not insurmountable if they can invest for the long-term,” Peter Richardson, vice president at Counterpoint Technology Research, told CNBC via email.

    Richardson said Korean firms Hyundai and Kia were “relatively unknown” in Europe 30 years ago, but “both brands have risen to be significant players.”

    “It takes time and dedication,” Richardson added.

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  • Mercedes and BMW want to take on Tesla. Check out their new electric concept cars

    Mercedes and BMW want to take on Tesla. Check out their new electric concept cars

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    The Mercedes-Benz Concept CLA Class was unveiled at IAA Mobility 2023 in Munich, Germany. The platform will underpin the German automaker’s push into electric cars.

    Mercedes-Benz

    Mercedes-Benz and BMW took the wraps off electric concept cars as they look to catch up with Tesla in the premium end of the market.

    At the IAA auto show in Munich, Mercedes showed off the Mercedes-Benz Concept CLA Class while BMW revealed the BMW Vision Neue Klasse.

    These cars are built on an entirely new platforms from the German automakers that will underpin both their EV offerings for the coming years, in what has been their most aggressive push into battery-powered vehicles yet.

    They are concept cars, so it’s unclear what their final form will look like when they’re eventually produced. But here’s a closer look at Mercedes and BMW’s offerings.

    Mercedes-Benz Concept CLA Class

    The Mercedes-Benz Concept CLA Class is built on the so-called Mercedes‑Benz Modular Architecture (MMA), a new platform designed by the German auto giant for electric cars.

    The range will comprise a total of four new models — a four-door coupé, an estate and two sports utility vehicles.

    Mercedes claims the car will have a range of 750 kilometres (466 miles) on a single charge. The company also claims that in just 15 minutes, the battery can be charged so the car can be driven 400 kilometers.

    Mercedes touted the fast-charging capabilities and long-range batter of the Concept CLA Class.

    Mercedes-Benz

    Mercedes has placed a big focus on the interior and user experience. The company said it is developing its own operating system for the car called MB.OS. This will help power various features from the giant screen across the dashboard to the voice assistant within the car.

    It will also allow third-party apps, such as your favorite music or video streaming apps, to be integrated with the vehicle.

    “This proprietary chip-to-cloud architecture represents a completely new approach for the company and will be a largely hidden yet defining aspect of all its future vehicles,” Mercedes-Benz said in a press release.

    Mercedes said it focused on digitizing the interior of the Concept CLA Class. This includes a virtual assistant and support for third-party apps.

    Mercedes-Benz

    Traditional automakers have been perceived as being behind Tesla on the software front. This is an attempt by Mercedes to show it is catching up.

    BMW Vision Neue Klasse

    The BMW Vision Neue Klasse is BMW’s answer to Tesla. It is also built on a new architecture that will underpin BMW’s future electric cars.

    The first electric vehicles based on the Neue Klasse — or new class — architecture are set to enter production in 2025.

    BMW revealed the BMW Vision Neue Klasse, a concept electric vehicle that will underpin its foray into battery-powered cars.

    Arjun Kharpal | CNBC

    The concept vehicle has a glass roof. BMW said the design of the car embody classic elements that fans know of the brand.

    The BMW Vision Neue Klasse was unveiled at the IAA Mobility 2023 International Motor Show in Munich.

    Arjun Kharpal | CNBC

    BMW said the car will contain what it calls Panoramic Vision, a heads-up display which projects information on the windscreen at the eyeline of the driver.

    The company said this will first be available in the Neue Klasse. Both passenger and driver will be able to interact with the Panoramic Vision feature, BMW said.

    There were few details on range and charging. But BMW said the new generation of its technology will improve the charging speed of the Neue Klasse models by up to 30 percent, in addition to boosting their range by up to 30 percent.

    BMW says the Vision Neue Klasse electric car has all the classic features the brand is known. BMW said the 21-inch aerodynamic wheels “pay tribute to the classic cross-spoke design inspired by motorsports.”

    Arjun Kharpal | CNBC

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  • CNBC Daily Open: Why did the unemployment rate and jobs rise in tandem?

    CNBC Daily Open: Why did the unemployment rate and jobs rise in tandem?

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    A hiring sign is pictured at a McDonald’s restaurant in Garden Grove, California on July 8, 2022.

    Robyn Beck | Afp | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    More jobs but higher unemployment
    U.S.
    nonfarm payrolls for August increased by 187,000, above the 170,000 estimate. However, the unemployment rate jumped from 3.5% last month to 3.8%, the highest since February 2022. Average hourly earnings increased 4.3% year on year, below the forecast of 4.4%. Combined with the downwardly revised figures for June and July, those are clear signs the U.S. jobs market is slowing.

    Positive outlook for markets
    U.S. stocks cheered the moderate jobs report and mostly inched up Friday, giving major indexes their best week in months. Asia-Pacific markets rose Monday, with Hong Kong’s Hang Seng index popping as much as 2.6%. That’s thanks to Hong Kong-listed property stocks, which surged after creditors allowed Country Garden Holdings to delay payment for an onshore bond.

    Electric vehicle moves
    Tesla shares slid 5% Friday after the company cut prices on its electric vehicles in both the U.S. and China. Meanwhile in Germany, BMW and Mercedes revealed EV concepts, representing their biggest push yet into the EV market. But that might not be enough to stop China’s dominance. Chinese EV companies all delivered enough vehicles in August to keep pace with their third-quarter guidance.

    JPMorgan Chase and Jeffrey Epstein
    JPMorgan Chase notified the U.S. Treasury Department of more than $1 billion in transactions related to “human trafficking” by Jeffrey Epstein, a lawyer for the U.S. Virgin Islands told a federal judge. Those transactions dated back 16 years and were only reported after Epstein was arrested and killed himself in jail in 2019, said Mimi Liu, an attorney for the Virgin Islands.

    [PRO] Slow start to September
    U.S. markets are closed Monday for Labor Day and economic data coming out this week is on the light side. The heavy hitters, like the consumer and producer price indexes, will only be released later in the month. So keep an eye out for these signs that will indicate whether stocks will fall prey to the September seasonality — the month’s historically been the weakest for stocks.

    The bottom line

    The U.S. economy added more jobs than expected in August, but the overall unemployment rate rose. This may sound counterintuitive since it’s natural to assume an increase in the number of jobs will lead unemployment going down. But there’s a simple explanation for that.

    By definition, the unemployment rate is the number of unemployed people (people without a job but are actively looking for one), divided by the labor force (the sum of people both employed and unemployed), expressed as a percentage.  

    If the unemployment rate goes up, that means the proportion of people looking for a job compared with the total labor force has grown. That’s straightforward enough. For the unemployment rate to go up even as there were 187,000 more jobs in August means there were more people who started looking for a job than people who secured one. The implication: The total labor force grew in August. Indeed, 597,000 people without work experience sought employment last month, according to the report.

    A growing labor force is a looser jobs market. That probably contributed to the lower-than-expected wage growth last month. As Bank of America U.S. economist Stephen Juneau wrote, “The broad message here seems to be that we are nearing full employment, with supply and demand coming more into balance.”

    That will come as a relief to Federal Reserve officials worried about a hot jobs market contributing to inflation. Investors, too, cheered the jobs report. They think there’s a 93% chance the Fed will keep rates unchanged at its September meeting and a 65.3% chance at its November meeting, according to the CME FedWatch Tool. That’s up from 80% and 44.5% a week ago, respectively.

    Major indexes rose in response to the jobs report as well. The S&P 500 climbed 0.18% Friday, giving it a 2.5% increase for the week — its best weekly performance since June. The Dow Jones Industrial Average added 0.33% to close 1.4% higher for the week. The Nasdaq Composite was essentially flat, but ended the week up 3.3%. That was both indexes’ best showing since July.

    U.S. markets are closed today, so we’ll have to wait to see if they can sustain this momentum and defy September’s reputation as the worst month for stocks.

    — CNBC’s Jeff Cox contributed to this report

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  • Stellantis warns UK risks exodus of EV production under post-Brexit rules

    Stellantis warns UK risks exodus of EV production under post-Brexit rules

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    Generic stock pictures of the Astra assembly line at Vauxhall’s plant in Ellesmere Port, Cheshire. Picture date: Tuesday July 6, 2021.

    Peter Byrne – Pa Images | Pa Images | Getty Images

    LONDON — Executives from Stellantis, the automaking giant behind brands including Peugeot, Chrysler and Citroën, are meeting with U.K. ministers Wednesday to warn post-Brexit trading arrangements severely risk its operations in the country.

    Stellantis manufactures Vauxhall, Fiat, Opel and other vehicles across two plants in the U.K., employing more than 5,000 people. It plans to move both toward majority and then 100% EV production as it rolls out electrification across its brands.

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    In a submission to a government enquiry into vehicle battery production, the company said it would be at a competitive disadvantage going forward because of tariffs due to be imposed on batteries transported between the U.K. and mainland Europe.

    “If the cost of EV manufacturing in the U.K. becomes uncompetitive and unsustainable, operations will close,” it said, citing previous decisions by BMW Group to relocate electric Mini production to China, and investments by Honda in EV production in the U.S. following the closure of its U.K. site.

    The EU–U.K. Trade and Cooperation Agreement gave battery and EVs a grace period before full Rules of Origin tariffs kick in, responding to these sourcing challenges. However, they will become progressively stricter in the coming years, rising to 45% and then 65% in terms of required domestic production. Automakers otherwise face 10% export duties on EVs.

    Stellantis said that if it manufactures its batteries in China and mainland Europe in the coming years as currently planned, it would face “higher logistics costs” that would threaten the “sustainability of our U.K. manufacturing operations.”

    The company warned the U.K. does not have a sufficient supply of the materials needed to support vehicle battery production. While this is also an issue in mainland Europe, with many supplies coming from China, Stellantis noted it had made significant investments in gigafactories in France, Germany and Italy and had a battery joint venture there.

    Watch CNBC's full interview with UK Finance Minister Jeremy Hunt

    It wants the government to negotiate with EU officials to maintain current rules until 2027.

    It comes as the EU and its members ramp up focus on EV production, with the formation of the European Battery Alliance and plans to loosen state aid rules around green manufacturing, in part in response to the U.S.’s landmark Inflation Reduction Act.

    Earlier this week, French President Emmanuel Macron hosted Tesla CEO Elon Musk to try to court investment in the country.

    The U.K. has made some progress on EV and battery production, with a large-scale lithium refinery planned for the north of England and Nissan building a battery gigafactory alongside a Chinese partner; but also instability, with battery maker Britishvolt narrowly rescued from administration earlier this year.

    The committee hearing is its attempt to lay the path for the future of EV production in the country, alongside an Automotive Transformation Fund.

    “We’ve been sleeping at the wheel when it comes to bringing battery plants to the United Kingdom,” Andy Palmer, former COO of Nissan and chair of EV battery manufacturer Inobat, told the BBC Wednesday.

    I've never seen this kind of EV investment, says DC Strategic Advisors president

    Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said the rules of origin for batteries posed a “significant challenge to manufacturers on both sides of the Channel, with the prospect of tariffs and price increases which discourage consumers from buying the very vehicles needed to achieve climate change goals.”

    Matthias Heck, senior credit officer at Moody’s Investors Service, told CNBC many companies are seeking to establish EV battery manufacturing facilities near their automotive plants due to the complexity of auto industry supply chains, with many parts crossing international borders, sometimes several times.

    This includes the likes of Stellantis in a joint venture with Mercedes-Benz and Total, Volkswagen and Tesla, Heck said. Meanwhile EU projects are benfiting from subsidies and local government support, as well as proximity to plants in France and Germany.

    “In countries where this is not possible, automakers rely on battery imports at competitive prices and logistics cost. Otherwise, they might be unable to produce battery electric vehicles at costs which are competitive to imports from other countries.”

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  • UK backs Rolls-Royce project to build a nuclear reactor on the moon

    UK backs Rolls-Royce project to build a nuclear reactor on the moon

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    Rolls-Royce has been working on a Micro-Reactor program “to develop technology that will provide power needed for humans to live and work on the Moon.”

    Lorenzo Di Cola | Nurphoto | Getty Images

    LONDON — The UK Space Agency said Friday it would back research by Rolls-Royce looking at the use of nuclear power on the moon.

    In a statement, the government agency said researchers from Rolls-Royce had been working on a Micro-Reactor program “to develop technology that will provide power needed for humans to live and work on the Moon.”

    The UKSA will now provide £2.9 million (around $3.52 million) of funding for the project, which it said would “deliver an initial demonstration of a UK lunar modular nuclear reactor.”

    The new money builds upon £249,000 provided by the UKSA to fund a study in 2022.

    “All space missions depend on a power source, to support systems for communications, life-support and science experiments,” it said.

    “Nuclear power has the potential to dramatically increase the duration of future Lunar missions and their scientific value.”

    Read more about energy from CNBC Pro

    Rolls-Royce is set to work with a range of organizations on the project, including the University of Sheffield’s Advanced Manufacturing Research Centre and Nuclear AMRC, and the University of Oxford.

    “Developing space nuclear power offers a unique chance to support innovative technologies and grow our nuclear, science and space engineering skills base,” Paul Bate, chief executive of the UK Space Agency, said.

    Bate added that Rolls-Royce’s research “could lay the groundwork for powering continuous human presence on the Moon, while enhancing the wider UK space sector, creating jobs and generating further investment.”

    According to the UKSA, Rolls-Royce — not to be confused with Rolls-Royce Motor Cars, which is owned by BMW — is aiming “to have a reactor ready to send to the Moon by 2029.”

    The news out of the U.K. comes at a time when NASA is pushing ahead with its Artemis program, which is focused on creating what it calls a “sustainable presence on the Moon to prepare for missions to Mars.”

    NASA is working with international and commercial partners on Artemis. In July 1969, Neil Armstrong became the first person to set foot on the moon.

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  • BMW expects higher margin and deliveries in 2023 amid electric rollout

    BMW expects higher margin and deliveries in 2023 amid electric rollout

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    Spencer Platt | Getty Images News | Getty Images

    German automaker BMW on Wednesday set out targets to slightly increase margins for its automotive segment and raise deliveries this year, as it pushes ahead with the rollout of its electric fleet.

    The company said it expects an EBIT (earnings before interest and taxes) margin of between 8-10% for its automotive range in 2023, with deliveries set to rise slightly from 2022 and “selling prices remaining at a stable level.” It forecasts the used car market will normalize this year “due to the increased availability of new cars.”

    Shares of BMW rose by 1.07% at 8:20 a.m. London time, following the announcement.

    “A high level of flexibility, combined with our operational performance, proved to be an effective combination for ensuring the success of the BMW Group, even in the face of headwinds and taking advantage of opportunities for profitable growth,” Oliver Zipse, chairman of the board of management of BMW AG, said in a press statement.

    Like rivals, BMW has been contending with global semiconductor shortages and supply chain disruptions, challenging it to fulfil its book order.

    The company confirmed the full-year 2022 results reported last week, including an EBIT of 10.6 billion euros ($11.4 billion) for its automotive segment, which had an. 8.6% margin last year. The company posted its automative cash flow near 11.1 billion euros.

    As a result, it proposed a dividend of 8.50 euros per common stake share, compared with a 5.80 euro payout for the same stock in the previous year.

    “We don’t look at one drive trend or one segment, or one region in the world, and I think, for us, this plays very nicely in what we said a couple of years before,” Zipse told CNBC. “And now we’re executing this plan. And it looks like the plan we are executing here is quite successful on the revenue side, but also on the market share side.”

    He stressed that the BMW strategy will continue to prioritize profitability, downplaying the effect of soaring inflation rates on consumer demand,

    “Whether inflation really has an input is a matter of are you able to have pricing power in the market,” he noted. “With that global approach we have here, I would be cautiously optimistic about the year, and we will have a slight increase in volume overall.”

    The company announced the appointment of a new chief financial officer on March 9, with Walter Mertl due to assume the role in May following the retirement of Nicolas Peter at the time.

    BMW results follow a spate of optimistic announcements from automakers earlier in the week, with Porsche issuing an ambitious growth outlook after record 2022 earnings and Volkswagen laying out a five-year $193 billion investment plan.

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  • Wall Street says Europe’s a better bet than the U.S. right now — and names its top stock picks

    Wall Street says Europe’s a better bet than the U.S. right now — and names its top stock picks

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  • Best of CES 2023: A color-changing BMW and a boba tea robot

    Best of CES 2023: A color-changing BMW and a boba tea robot

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    LAS VEGAS (AP) — Tech companies showed off their latest products this week at CES, formerly known as the Consumer Electronics Show.

    Crowds of investors, media and tech workers have streamed into cavernous Las Vegas venues to see the latest tech from big companies and startups. There are flashy concept cars, screens of every possible variety, robots that can help with a range of tasks and technology for homes. Some tech innovations are already available to buy while others may never make it past the prototype stage.

    The show runs through Sunday. Here are some highlights:

    VIDEO CALLS WITH A TWIST

    Tired of the same old videoconference calls? Zero Distance thinks it may have the answer.

    The company’s Wehead device helps people at a meeting feel like a remote attendee is in the room with them.

    The device looks something like a machine you might find at the eye doctor, but with screens on the front. The person participating from afar looks like they’re there in 3D and when they look around or nod, the machine also moves.

    Wehead works with standard computer or smartphone webcams.

    “If there are a few people around the table and just one screen, not everybody can see the screen, and the person in the laptop, he or she is not able to see everybody,” Wehead creator Ilia Sedoshkin said. “That’s the obvious application.”

    “But for people who spend like 40 hours a week in their home office, they don’t see other people a lot. So feeling the real person in the room, using some space on your table, can give you less loneliness,” Sedoshkin said.

    The Wehead costs $1,555, with a pro version available for $4,555.

    COLOR-CHANGING CAR

    BMW is betting on a car that can change colors.

    The German car manufacturer’s latest concept car can display up to 32 colors and allows drivers to customize their cars digitally.

    That’s not the only thing — the mid-size sedan has a voice assistant as well as physical and digital elements that allow the headlights to create facial expression and express moods such as joy, astonishment and approval.

    The car is called BMW i Vision Dee — Dee for “digital emotional experience.”

    The splashy ride is the next iteration of BMW’s color-changing technology unveiled at last year’s CES, when the company showcased a car that had the ability to change from black to white.

    The body of the latest version is divided into 240 segments, all of which the company said can be controlled individually and allow for an endless number of patterns to be generated.

    The car will be available in 2025.

    A BOBA ROBOT

    From milk tea to passion fruit, ADAM the robot can make any boba tea drink you like.

    ADAM also can function as a bartender or barista, but it made boba tea for delighted CES attendees who used digital touch screens to select their drinks.

    “ADAM is intended to be basically a way to attract guests and a way to make drinks fully automated and very efficient,” Timothy Tanksley of Richtech Robotics said.

    The two-armed robot has two grip handles that can be customized to make specific drinks. While taking a break from mixing beverages, ADAM can dance to keep people entertained.

    ADAM, which can be rented for events or hired full-time, is among a range of robots on display at CES this week doing a variety of tasks from disinfecting surfaces to making deliveries.

    NUT MILK ON DEMAND

    During the pandemic shutdowns in 2020, California resident Luiz Rapacci had a hard time finding his favorite almond milk at grocery stores. He looked up online recipes to make his own, but they were messy and time-consuming.

    Almost three years later, Rapacci is at CES to unveil his nut milk brewing machine, the GrowUp brewer.

    With GrowUp, customers can make nut milk at home in minutes with water and their chosen variety, from cashews and walnuts to almonds and pistachios, Rapacci said.

    The machine costs $599 and is available now for pre-order.

    PERFECT EYEBROWS

    L’Oreal’s Brow Magic is bringing augmented reality to your eyebrows.

    The company’s app scans your face and uses AR to make personalized recommendations for choices of shape, thickness and effect. You apply a primer, then the Brow Magic device uses 2,400 tiny nozzles to brush over and paint your eyebrows.

    L’Oreal developed Brow Magic in partnership with Prinker, which makes a device that quickly applies temporary tattoos.

    The makeup in Brow Magic, which is expected to launch later this year, can last up to two days and be taken off with regular makeup remover.

    ___

    Associated Press Writer Haleluya Hadero contributed to this report.

    ___

    For more on CES, visit: https://apnews.com/hub/technology

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  • EXPLAINER: 2023 tax credits for EVs will boost their appeal

    EXPLAINER: 2023 tax credits for EVs will boost their appeal

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    WASHINGTON — Starting Jan. 1, many Americans will qualify for a tax credit of up to $7,500 for buying an electric vehicle. The credit, part of changes enacted in the Inflation Reduction Act, is designed to spur EV sales and reduce greenhouse emissions.

    But a complex web of requirements, including where vehicles and batteries must be manufactured to qualify, is casting some doubt on whether anyone can receive the full $7,500 credit next year.

    The Treasury Department is rolling out more information on which vehicles qualify and how individuals and businesses can access credit beginning in 2023. One big loophole that allows tax credits for EVs purchased for “commercial” use, such as leasing or ride-share, even if they are foreign-made is drawing the ire of Sen. Joe Manchin, D-W.Va., who says it could circumvent the intent of the law to favor American manufacturing.

    For at least the first two months of 2023, though, a delay in some of Treasury’s rules will likely make the full credit temporarily available to consumers who meet certain income and price limits.

    The new law also provides a smaller credit for people who buy a used EV.

    Certain EV brands that were eligible for a separate tax credit that began in 2010 and that will end this year may not be eligible for the new credit. Several EV models made by Kia, Hyundai and Audi, for example, won’t qualify because they are manufactured outside North America.

    The new tax credit, which lasts until 2032, is intended to make zero-emission vehicles affordable to more people. Here is a closer look at it.

    ———

    WHAT’S NEW FOR 2023?

    The credit of up to $7,500 will be offered to people who buy certain new electric vehicles as well as some plug-in gas-electric hybrids and hydrogen fuel cell vehicles. For people who buy a used vehicle that runs on battery power, a $4,000 credit will be available.

    But the question of which vehicles and buyers will qualify for the credits is complicated and will remain uncertain until Treasury issues the proposed rules in March.

    What’s known so far is that to qualify for the credit, new EVs must be made in North America. In addition, caps on vehicle prices and buyer incomes are intended to disqualify wealthier buyers.

    Starting in March, complex provisions will also govern battery components. Forty percent of battery minerals will have to come from North America or a country with a U.S. free trade agreement or be recycled in North America. (That threshold will eventually go to 80%.)

    And 50% of the battery parts will have to be made or assembled in North America, eventually rising to 100%.

    Starting in 2025, battery minerals cannot come from a “foreign entity of concern,” mainly China and Russia. Battery parts cannot be sourced in those countries starting in 2024 — a troublesome obstacle for the auto industry because numerous EV metals and parts now come from China.

    There also are battery-size requirements.

    ———

    WHICH VEHICLES ARE ELIGIBLE?

    Because of the many remaining uncertainties, that’s not entirely clear. However, the Treasury Department released an initial list of vehicles that meet the requirements to claim the new clean vehicle tax credit beginning Jan. 1, including models from Chrysler, Ford, Jeep, Lincoln, Nissan and Rivian. More vehicles will be added to the list in the weeks and months to come.

    The Energy Department also maintains a list of qualifying EVs.

    General Motors and Tesla have the most EVs assembled in North America. Each also makes batteries in the U.S. But because of the requirements for where batteries, minerals and parts must be manufactured, it’s likely that buyers of those vehicles would initially receive only half the tax credit, $3,750. GM says its eligible EVs should qualify for the $3,750 credit by March, with the full credit available in 2025.

    Until Treasury issues its rules, though, the requirements governing where minerals and parts must be sourced will be waived. This will allow eligible buyers to receive the full $7,500 tax incentive for qualifying models early in 2023.

    ———

    WHAT ABOUT PRICE?

    To qualify, new electric sedans cannot have a sticker price above $55,000. Pickup trucks, SUVs and vans can’t be over $80,000. This will disqualify two higher-priced Tesla models. Though Tesla’s top sellers, the models 3 and Y, will be eligible, with options, those vehicles might exceed the price limits.

    Kelley Blue Book says the average EV now costs over $65,000, though lower-priced models are coming.

    ———

    WILL I QUALIFY FOR THE CREDITS?

    It depends on your income. For new EVs, buyers cannot have an adjusted gross income above $150,000 if single, $300,000 if filing jointly and $225,000 if head of a household.

    For used EVs, buyers cannot earn more than $75,000 if single, $150,000 if filing jointly and $112,500 if head of household.

    ———

    HOW WILL THE CREDIT BE PAID?

    At first, it will be applied to your 2023 tax return, which you file in 2024. Starting in 2024, consumers can transfer the credit to a dealership to lower the vehicle price at purchase.

    ———

    WILL THE CREDITS BOOST EV SALES?

    Yes, but it probably will take a few years, says Mike Fiske, associate director for S&P Global Mobility. The credit may cause a bump in sales early next year because of Treasury’s delay in issuing the stricter requirements. But most automakers are now selling all the EVs they build and cannot make more because of shortages of parts, including computer chips.

    And automakers may have trouble certifying the sources of battery minerals and parts, a requirement for buyers to receive the full credit. Automakers have been scrambling to move more EV supply chains to the U.S.

    ———

    HOW DOES THE USED-EV CREDIT WORK?

    Consumers can receive tax credits of up to $4,000 — or 30% of the vehicle price, whichever is less — for buying EVs that are at least two years old. But the used EV must cost less than $25,000 — a tall order given the starting prices for most EVs on the market. A search on Autotrader.com shows that the Chevy Bolt, the Nissan Leaf and other relatively economical used EVs are listed at $26,000 or more for models dating back to 2019.

    On the other hand, used EVs need not be made in North America or comply with the battery-sourcing requirements. That means that, for instance, a 2022 Kia EV6 that’s ineligible for the new-vehicle credit because it’s made in South Korea can qualify for a used-car credit if its price falls below $25,000.

    “The real effects where these tax credits will have a big impact will be in the 2026-to-2032 period — a few years into the future — as automakers gear up and volumes increase,” said Chris Harto, a senior policy analyst for Consumer Reports magazine.

    ———

    WHY IS THE GOVERNMENT OFFERING THE CREDITS?

    The credits are part of roughly $370 billion in spending on clean energy — America’s largest investment to fight climate change — that was signed into law in August by President Joe Biden. EVs now make up about 5% of U.S. new-vehicle sales; Biden has set a goal of 50% by 2030.

    Sales of EVs have been climbing, particularly as California and other states have moved to phase out gas-powered cars. The rise of lower-cost competitors to Tesla, such as the Chevy Equinox, with an expected base price of around $30,000, are expected to broaden the EVs’ reach to middle-class households. S&P Global Mobility expects EVs’ share of auto sales to reach 8% next year, 15% by 2025 and 37% by 2030.

    ———

    COULD REQUIREMENTS BE EASED TO MAKE MORE EVs ELIGIBLE?

    It appears that may happen. Some U.S. allies are upset over North American manufacturing requirements that disqualify EVs made in Europe or South Korea.

    The requirements knock Hyundai and Kia out of the credits, at least in the short term. They plan to build new EV and battery plants in Georgia, but those won’t open until 2025. European Union countries fear that the tax credits could make their automakers move factories to the U.S.

    There is a loophole, however. The law appears to exempt commercial vehicles from the North America assembly and domestic battery mineral and parts requirements. That means that rental car and leasing companies with huge fleets as well as EVs used fuller-time for ride-share such as Uber and Lyft could be eligible for up to $7,500 in tax credits even for foreign-made EVs. A fact sheet released by Treasury on Thursday affirms it would allow exemptions for commercial vehicles, which the department says it must do based on the wording of the law.

    That move drew the anger of Manchin, a key vote in passing the Inflation Reduction Act, who on Thursday accused the Biden administration of bending to the desires of foreign countries. He said the exemptions undermine the law’s intent to “bring our energy and manufacturing supply chains onshore to protect our national security, reduce our dependence on foreign adversaries and create jobs right here in the United States.”

    Manchin said he would introduce legislation in the coming weeks that “prevents this dangerous interpretation from Treasury from moving forward.”

    ———

    ARE THERE CREDITS FOR CHARGING STATIONS?

    If you install an EV charger at home, credits may be available. The new law revives a federal tax credit that had expired in 2021; it provides 30% of the cost of hardware and installation, up to $1,000. It adds a requirement that the charger must be in a low-income or non-urban area. Businesses that install new EV chargers in those areas can receive tax credits of as much as 30% — up to $100,000 per charger.

    Residential EV chargers can range in cost from $200 to $1,000; installation can add several more hundred dollars.

    ———

    SO SHOULD I BUY NOW OR WAIT?

    That’s entirely a personal decision.

    If you’ve grown tired of volatile gasoline prices and are considering an EV, you might want to go ahead. Buying a qualifying EV in January or February could net you the full $7,500 tax break before more stringent requirements take effect in March. Additional state credits also may be available.

    But if you’re still on the fence, there’s no urgency. Consumers who rush to buy now, when relatively few qualifying EVs are available, may face dealer price markups. Within a few years, technology will improve, and more EVs will qualify for full credits.

    ———

    WHERE CAN I FIND MORE INFORMATION?

    The Treasury Department on Thursday released several frequently asked questions documents for individual and commercial customers on the clean vehicle tax credits meant to help them understand how to access the various tax incentives.

    The department also released a white paper explaining the anticipated direction that it is taking ahead of the proposed rule rollout.

    ————

    Krisher reported from Detroit. Associated Press writer Fatima Hussein contributed to this report.

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  • EU strikes deal to ban the sale of new diesel and gasoline cars from 2035

    EU strikes deal to ban the sale of new diesel and gasoline cars from 2035

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    An electric car being charged in Germany. The European Union is moving forward with plans to ramp up the number of EVs on its roads.

    Tomekbudujedomek | Moment | Getty Images

    The EU’s plans to phase out the sale of new diesel and gasoline cars and vans took a big step forward this week after the European Council and European Parliament came to a provisional agreement on the issue.

    In a statement Thursday evening, the European Parliament said EU negotiators had agreed on a deal related to the European Commission’s proposal for “zero-emission road mobility by 2035.”

    The plan seeks to slash CO2 emissions from new vans and passenger cars by 100% from 2021 levels and would constitute an effective ban on new diesel and gasoline vehicles of these types. The European Commission is the EU’s executive branch.

    Read more about electric vehicles from CNBC Pro

    The parliament said smaller automakers producing up to 10,000 new cars or 22,000 new vans could be granted a derogation, or exemption, until the end of 2035.

    It added that “those responsible for less than 1,000 new vehicle registrations per year continue to be exempt.”

    Formal approval of the deal from the European Council and European Parliament is required before it takes effect.

    Industry reactions

    Thursday’s news was welcomed by Transport & Environment, a Brussels-based campaign group. “The days of the carbon spewing, pollution belching combustion engine are finally numbered,” said Julia Poliscanova, T&E’s senior director for vehicles and e-mobility.

    Others commenting on the plans included the European Automobile Manufacturers’ Association. In a statement, it said it’s now urging “European policy makers to shift into higher gear to deploy the enabling conditions for zero-emission mobility.”

    “This extremely far-reaching decision is without precedent,” said its chair, Oliver Zipse, who is the CEO of BMW. “It means that the European Union will now be the first and only world region to go all-electric.”

    “Make no mistake, the European automobile industry is up to the challenge of providing these zero-emission cars and vans,” he added.

    “However, we are now keen to see the framework conditions which are essential to meet this target reflected in EU policies.”

    “These include an abundance of renewable energy, a seamless private and public charging infrastructure network, and access to raw materials.”

    During an interview with CNBC earlier this month, Carlos Tavares, the CEO of Stellantis, was asked about the EU’s plans to phase out the sale of new ICE cars and vans by 2035. ICE vehicles are powered by a regular internal combustion engine.

    It’s “clear that the decision to ban pure ICEs is a purely dogmatic decision,” said Tavares, who was speaking to CNBC’s Charlotte Reed at the Paris Motor Show.

    He added that Europe’s political leaders should be “more pragmatic and less dogmatic.”

    “I think there is the possibility — and the need — for a more pragmatic approach to manage the transition.”

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