BMWNA CEO's letter to dealers regarding Inflation Reduction Act

RalphT5 · 08-16-2022, 01:05 PM

It's bs like this that makes me feel even better about my inbound M5C. I'll stick with my ICE.

cbertels · 08-16-2022, 01:12 PM

I bet this thread gets out of control with the political banter and disappears. Under/over at page 5. Place your bets.

Edit: the overs have it!

yousefnjr · 08-16-2022, 01:20 PM

We got a similar email from Rivian regarding our R1S reservation. They said they weren’t 100% sure but that by making $100 of the deposit non-refundable they thought that would constitute a binding order. Who knows.

sycd · 08-16-2022, 01:22 PM

Abolish all these tax credits and stop voting these criminals and morons into office, that will reduce inflation.

j23 · 08-16-2022, 01:39 PM

Quote:

Originally Posted by cbertels

I bet this thread gets out of control with the political banter and disappears. Under/over at page 5. Place your bets.

ASAP · 08-16-2022, 01:44 PM

the amount of fails under the current regime has to be higher than the amount of posts on all bimmerpost

pikcachu · 08-16-2022, 01:53 PM

Quote:

Originally Posted by ASAP

the amount of fails under the current regime has to be higher than the amount of posts on all bimmerpost

Who's on first · 08-16-2022, 01:54 PM

Quote:

Originally Posted by M3AWD

He says "These changes mean that our vehicles, which currently qualify for up to a $7,500 federal tax credit today, will no longer qualify as soon as the President signs this legislation."

But doesn't the PHEV X5 45e plug-in still qualify if its MSRP is below $80k? It's assembled in North America as far as I'm aware and it meets the minimum battery size requirement

Currently yes. What I'm upset about is we were going to order the new 50e in April.. based on our build (using current pricing) it won't qualify.

Major bummer.

TurtleBoy · 08-16-2022, 02:01 PM

Quote:

Originally Posted by Autobahn SoCal

The i4 is assembled in Germany. Given the wording of this regarding "North America assembly" etc does this not apply?

Yes, that is why folks were trying to get a binding contract prior to today so they could use the Transition rule to qualify under the old credit rules.

TurtleBoy · 08-16-2022, 02:03 PM

Quote:

Originally Posted by M3AWD

He says "These changes mean that our vehicles, which currently qualify for up to a $7,500 federal tax credit today, will no longer qualify as soon as the President signs this legislation."

But doesn't the PHEV X5 45e plug-in still qualify if its MSRP is below $80k? It's assembled in North America as far as I'm aware and it meets the minimum battery size requirement

The memo is filled with mistakes. The 45e will continue to qualify until the Secretary issues the battery guidance. At that time it is unlikely that it will qualify for either or both of the credit parts.

P1 · 08-16-2022, 02:05 PM

Can someone explain why it's called the "Inflation Reduction Act"? How will it reduce inflation?

ASAP · 08-16-2022, 02:08 PM

Quote:

Originally Posted by P1

Can someone explain why it's called the "Inflation Reduction Act"? How will it reduce inflation?

no one knows this part

akkando · 08-16-2022, 02:10 PM

Quote:

Originally Posted by P1

Can someone explain why it's called the "Inflation Reduction Act"? How will it reduce inflation?

Inflation is mostly a supply issue so it probably won't. Either buying power needs to be reduced or we need more supply of goods. Right now there's globally low supply of "stuff" and there's people willing to pay more for the limited supply of goods.

PackPride85 · 08-16-2022, 02:23 PM

Quote:

Originally Posted by supershaft

Quote:

Originally Posted by MackSea70

Background: I split my drive time between a F97 (x3Mc) and a Tesla model Y. (and have another F90 (M5c) on order.)

Personally I like the NA CEO's message here. We just had a major blow towards our electrification efforts - please do all you can to pre-date your orders into sales in order to look out for the best interests of our customers.

I don't even understand the purpose of this legislation other than to punish high income tax payers.

The administration is hell bent on driving us green - this is fine, while I enjoy my 625 HP ICE engine, I can get behind conservation efforts. Yet nothing in the EV credit section of the bill make sense.

EVs are (due to their tech nature) more expensive than their ICE counter parts - putting EVs out of the reach of the average car shopper. In some cases the tax incentives available DO bring those vehicles in reach of the slightly higher than average income earner - and yet we're taking that tax credit away.

Next, we all know that when we look at the lifecycle of a EV compared to an equivalent ICE counterpart the EV is actually more polluting. So for higher income buyers who want to at least convey the image that we're doing something good for the environment, we have the benefit of the tax credit. Remove the tax credit and you're removing a reason a lot of people (my neighbor for example) are willing to pay more for a car that pollutes less (but more over its lifespan).

None of this seems like a way to get the already skeptical population to buy more EVs and actually achieve reduced carbon emissions. You're taking an already expensive product, making it even more expensive, not making it more broadly available, nor doing anything to improve the substantially lacking electrical infrastructure needed to truly make EVs a reality.

What am I missing here?

I think the government is trying to encourage EV adoption in the lower income brackets but as usual it's misguided and wholly missed the mark.

No - the tax break isn't intended to drive EV adoption in any tax bracket. There's no point with demand being way off the charts. The purpose is to spur manufacturers to build more EVs in the US using US sourced parts.

therealm3 · 08-16-2022, 02:37 PM

Quote:

Originally Posted by M3ZCPNYC

I'm so happy Biden is making America great again

Actually this one falls square with Manchin. He's the one who insisted on all these rules to garner his vote. No matter the party, it sucks when one dude wrecks it for everyone. Kinda goes against the whole democracy thing….

What can you do. I hope folks are able to claim the 7500 if they already have orders in.

cbertels · 08-16-2022, 02:43 PM

Quote:

Originally Posted by P1

Can someone explain why it's called the "Inflation Reduction Act"? How will it reduce inflation?

Bills and almost always named something catchy unrelated to its content. This one is no exception IMHO.

j23 · 08-16-2022, 02:45 PM

Quote:

Originally Posted by akkando

Quote:

Originally Posted by P1

Can someone explain why it's called the "Inflation Reduction Act"? How will it reduce inflation?

Inflation is mostly a supply issue so it probably won't. Either buying power needs to be reduced or we need more supply of goods. Right now there's globally low supply of "stuff" and there's people willing to pay more for the limited supply of goods.

If by supply issue you mean excess supply of dollars, then yes.

Alpine Wait · 08-16-2022, 02:55 PM

Quote:

Originally Posted by MackSea70

Next, we all know that when we look at the lifecycle of a EV compared to an equivalent ICE counterpart the EV is actually more polluting.

We do?

omasou · 08-16-2022, 02:59 PM

Quote:

Originally Posted by MackSea70

I don't even understand the purpose of this legislation other than to punish high income tax payers.

<snip>

What am I missing here?

IMHO it's an attempt to…

increase US made EV adoption, e.g. Big 3 b/c price and income will exclude some xUS manufacturers building in NA, like Spartanburg built vehicles

Indirectly tax the "rich" by excluding them from rebates.

Interested to see how this effects adoption and manufacture required government compliance goals.

slipcky6 · 08-16-2022, 03:07 PM

Not looking for legal advice but I signed my binding contract yesterday the 15th so I should be good to get the $7,500 credit? I take delivery of the car later this week.

M3ZCPNYC · 08-16-2022, 03:08 PM

Harris biden2024 whoooo can't wait I love Biden

TurtleBoy · 08-16-2022, 03:09 PM

Quote:

Originally Posted by slipcky6

Not looking for legal advice but I signed my binding contract yesterday the 15th so I should be good to get the $7,500 credit? I take delivery of the car later this week.

Yes, you should be fine.

08-16-2022, 01:05 PM	#23
RalphT5 Private First Class 256 Rep 193 Posts Drives: 2023 F90 Join Date: Aug 2012 Location: Houston, TX iTrader: (0) Garage List [0.00]	It's bs like this that makes me feel even better about my inbound M5C. I'll stick with my ICE. __________________ 2023 F90
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08-16-2022, 01:12 PM	#24
cbertels Captain 1216 Rep 775 Posts Drives: M3 YMB-SS Join Date: May 2016 Location: Orlando iTrader: (0)	I bet this thread gets out of control with the political banter and disappears. Under/over at page 5. Place your bets. Edit: the overs have it!
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08-16-2022, 01:20 PM	#25
yousefnjr salty cowboys fan 6155 Rep 3,402 Posts Drives: ‘06 Z4MR, ‘20 X7, ‘22 M4x Join Date: Dec 2012 Location: Bay Area, CA iTrader: (2)	We got a similar email from Rivian regarding our R1S reservation. They said they weren’t 100% sure but that by making $100 of the deposit non-refundable they thought that would constitute a binding order. Who knows.
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08-16-2022, 01:22 PM	#26
sycd Captain 247 Rep 640 Posts Drives: G87 M2 [MT] Join Date: Mar 2008 Location: USA iTrader: (0) Garage List 2023 BMW M2 [MT] [0.00] 2020 BMW X3M [0.00]	Abolish all these tax credits and stop voting these criminals and morons into office, that will reduce inflation.
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08-16-2022, 01:44 PM	#28
ASAP Major General 10125 Rep 8,606 Posts Drives: '23 X3 M40i Join Date: Sep 2012 Location: FL iTrader: (0)	the amount of fails under the current regime has to be higher than the amount of posts on all bimmerpost __________________ 2 x N54 -> 1 x N55 -> 1 x S55-> 1 x B58
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08-16-2022, 02:05 PM	#33
P1 Lieutenant General 11554 Rep 11,132 Posts Drives: 2004 3/4 ton Duramax Join Date: Aug 2007 Location: United States iTrader: (1)	Can someone explain why it's called the "Inflation Reduction Act"? How will it reduce inflation?
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08-16-2022, 03:07 PM	#42
slipcky6 New Member 4 Rep 19 Posts Drives: 2018 BMW M4 Join Date: Nov 2016 Location: Austin iTrader: (0)	Not looking for legal advice but I signed my binding contract yesterday the 15th so I should be good to get the $7,500 credit? I take delivery of the car later this week.
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08-16-2022, 03:08 PM	#43
M3ZCPNYC Captain 583 Rep 842 Posts Drives: M3 Join Date: May 2018 Location: NYC iTrader: (1)	Harris biden2024 whoooo can't wait I love Biden
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