Reporter Park Ga-young of Money Today | 2023.04.21 15:09
Germany’s Volkswagen electric cars will receive subsidies under the US Inflation Reduction Act (IRA). After battery requirements were strengthened, only electric vehicles from US manufacturers were eligible for subsidies, and Volkswagen was the first foreign company to receive subsidies.
According to the US Treasury Department on the 20th (local time), the EV ID.4 produced by Volkswagen at its Tennessee plant the day before was added to the list of subsidies as it meets all the battery and mineral requirements that required by the IRA. As a result, ID.4 receives the full maximum of $7,500 (approximately 9.97 million won). With the implementation of the IRA in August, subsidies have been paid only to electric vehicles produced and assembled in North America. Then, with the recent publication of detailed guidelines, battery-related requirements have become more stringent. Even for electric vehicles that are finally assembled in North America, △ $3,750 when using more than 50% of battery parts manufactured and assembled in North America △ $3,750 when using more than 40 % of core minerals mined and processed in the US or FTA countries. This requirement has been applied since the 18th.
As a result, subsidy targets have been significantly reduced. The number of vehicles that can receive full subsidies also dropped significantly from 34 to 14. Hyundai Motor and Kia Motors, which do not have production facilities in the United States, as well as Nissan in Japan, were exempted from subsidies. In the case of Hyundai Motor’s GV70, which is assembled at the Alabama plant, it met the requirements for final assembly electric vehicles in North America, but was not included in the subsidy target because it was equipped with a battery made in China.
Volkswagen showed optimism that it would receive subsidy benefits even after it was exempted from the subsidy payment on the 17th. Pablo Di Ci, CEO of Volkswagen North America, said in a statement that day, “With the subsidy benefit, it is now possible to buy the ID. 4, which is already one of the most affordable electric SUVs, even more affordable. It’s also good news for American consumers as the choice of electric vehicles expands.”
Politico said, “Two days after the publication of the list of subsidy targets filled with only US companies, Volkswagen vehicles were listed. This will help ease trade tensions with Europe somewhat,” by adding,” Other foreign companies such as Hyundai Motor Company and Volvo The list is expected to expand further as they find ways to meet the battery requirements set by the United States, he said.
[저작권자 @머니투데이, 무단전재 및 재배포 금지]
