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The TechMobility Podcast
Autonomous Truckling Gains Momentum, The Paradox of Modern Vehicles; Auto Industry Cargo Theft, The End of EV Credits
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The transportation landscape is undergoing seismic shifts that will fundamentally alter how people and goods are moved across America. Autonomous trucking has quietly evolved from experimental technology to commercial reality, with companies like Aurora now operating routes of 1,000 miles or more that dramatically outperform human-driven alternatives. When a self-driving truck can complete a journey in half the time without federally mandated rest breaks, the economic calculus becomes impossible to ignore.
Yet technological progress brings unexpected consequences. The advanced safety features designed to protect us—such as automatic emergency braking, lane departure warnings, and blind spot detection—have created a paradoxical effect on insurance costs. While these technologies have successfully reduced accident frequency by 25%, the sophisticated sensors they rely on have made repairs prohibitively expensive, driving up claim costs by 60% and neutralizing anticipated savings. When a simple fender bender can damage calibrated safety systems that require specialized equipment, which few shops possess, insurers increasingly opt to total vehicles rather than repair them.
Meanwhile, cargo theft has emerged as a billion-dollar problem plaguing the automotive supply chain. From factory floors to dealership lots, sophisticated criminals are targeting everything from vehicle components to finished luxury cars, with theft values skyrocketing from $4.6 million in 2012 to $35 million in 2023. These costs inevitably filter down to consumers through higher prices and insurance premiums.
Perhaps most immediately impactful are the sweeping policy changes coming to electric vehicles and renewable energy. Federal tax credits worth $7,500 for new EVs and $4,000 for used EVs will vanish on September 30th, alongside commercial vehicle incentives worth up to $40,000 per vehicle. Renewable energy isn't spared either—rooftop solar installation credits expire at year's end, while wind and solar farm incentives in place for decades will disappear for projects after 2027. For consumers contemplating an EV purchase or solar installation, the clock is ticking on significant potential savings.
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Speaker 2:I'm Ken Chester On the docket why vehicles equipped with advanced driver assistance technology pay higher insurance premiums, theft, auto industry cargo and the end of EV credit. To join the conversation, be it to ask a question, share an opinion or even suggest a topic for future discussion, call or text the TechMobility hotline, that number, 872-222-9793. Or you can email the show directly. Talk at techmobilityshow From the Tech Mobility News Desk. I know that I have talked to you a lot about autonomous trucking. Regardless of how you feel about it whether driving down an interstate at interstate speeds and looking over at the truck that's up next to you and not seeing a driver is a little unnerving it is the thing that is happening in real time. And, as always when it comes to business, as always, yes, it's money involved. I wanted to share with you the latest news and, yes, it's happening down in Texas. Texas, arizona, california is ground zero for autonomous trucking. Part of that's the weather. It's even Part of that's the interstate. Many, many miles of many, many miles. There are not a lot of cities, so they can do the long haul trucking necessary with a minimum of programming and I say a minimum, that is really an understatement, but it's not as complex as trying to navigate a major city is what I'm saying.
Speaker 2:Autonomous truck technology maker, aurora has expanded its pilot program with Werner. Werner Enterprises is a major trucking firm in the United States. The new Fort Worth to Phoenix Lane will augment Aurora's existing Fort Worth to El Paso Lane, which is expected to begin in the second half of the year. Now what do they mean by lanes? They mean they are opening a trucking route between those cities, an autonomous trucking route For the longest time during their pilot testing and it's not just Aurora, it's too simple, it's others. Torque is another one. They had safety drivers, they had remote operation, remote control, they had somebody monitoring. They're getting to the point now, as they finish out their safety validations, that if they have safety drivers they'll pull them, if they have remote drivers they'll pull them. And these vehicles will be operating on public roads, typically interstates, and typically there's one in particular to either I-10 or I-45, they'll be running in the very near future. This year, at volume, the new lane, fort Worth to Phoenix lane, is over 1,000 miles, with Aurora self-driving trucks having the potential to cut the single driver transit time in half.
Speaker 2:Think about this for a minute If your average speed and that's stop, go loading, whatever. Everything averaged together is usually about 50 miles an hour, 50, 55, depending on the state. A commercial truck, a class A truck, may be limited to 55. They don't usually let you travel much faster than that. So let's say the average speed is 50 miles an hour. Okay, assuming that the driver in Fort Worth was able to load up and roll out, that he started his day at that terminal, was able to get his load with no delay and roll out the door.
Speaker 2:According to federal hours of service laws, a human driver can drive a maximum of 11 hours in a 24-hour day. So how do you get around that? Well, one way to get around that is teams of drivers, where you have two drivers that are in the truck and when one hits the numbers, the other one jumps and takes over. That gets you to 22 hours, and if there are any delays at all because that doesn't count for fuel any port or traffic issues, that's straight. Autonomous trucks, though, don't have the same requirement, meaning there's an opportunity to dramatically increase asset utilization and thus revenue trials driven.
Speaker 2:Do you have any idea what a class eight big rig over the road truck cost each? We're talking six digits, hundreds of thousands of dollars each rig. And that doesn't count how you're paying the driver. Usually they get paid by the mile. If your company driver, the compensation might be different if your owner-operator is per mile. Imagine being able to cover that 1,000 miles in 10 hours instead of 22. In fact, if they do it and we'll even throw in that they have a two-hour turnaround when they get to Phoenix, that they have a two-hour turnaround when they get to Phoenix. So in the time it took the drivers to get there human drivers, 22-plus hours to get there the automated Werner truck could get there in roughly 20 hours, turn around and be part of the way back. Don't have to stop at all, not even a problem, no stopping at all, assuming the same 50 miles an hour.
Speaker 2:And here's something that they learned about autonomous trucking. Actually, the autonomous software is actually less hard on the truck. Brakes last longer, tires last longer, there's less wear, there's less damage, because the software is more consistent and even over longer periods. Because the average human being, we fluctuate. You don't think you do, but you do. Somebody was to follow you for a hundred miles, they would see. Even with the cruise you would fluctuate in speed, you would fluctuate in your handling and lane changing and things like that, how you use the brakes. They found that, in addition to the federal hours of service issue, that becomes a non-issue now, because now that truck can do it in 20 hours, doesn't have to stop and may even get better time. Because they found out that by being smoother, more careful the studios they actually make better time, that they could be part of the way back or leaving the terminal. When the drivers the human drivers get there with their load, the autonomous truck has already been there and get ready to leave Money, money, money and the fact that you don't need two drivers.
Speaker 2:In fact, you don't need any drivers. So, in addition to two driver salaries, you don't need a truck that can run and doesn't have to shut down, so you don't have issues with potential theft because you have to stop. If it's a single driver, it's going to take you two days to get there With two drivers. Okay, a little over a day With an autonomous truck. I can still shave time off of that and it's all about time and money. If the truck ain't moving, it ain't earning, and that's the challenge. That is the challenge.
Speaker 2:But in case you think that they're doing this willy-nilly. I'm looking at a story that's a couple months ago with Aurora and they're talking about a couple of other trucking companies and the subheading in that title is company completes 1,200 miles of driving without a driver in the cab. That's dated May 1st this year and if you've been a regular listener of this program, you already you know the answer to the question I'm about to ask when was the first fully autonomous trucking delivery From where to where, what was it hauling, and when did it happen? If you said Colorado, you'd be right. If you said from Fort Collins to Colorado Springs, you'd be right. If you said from Fort Collins to Colorado Springs, you'd be right. If you said it was Budweiser beer, you get the prize.
Speaker 2:The first paid load for autonomous trucks happened back in 2015, 10 years ago Now, to be fair. At that time there were safety drivers in the cab, but they pretty much just sat there. Truck did the work. They got the truck on the interstate. They got the truck off the interstate, but that interstate, which was most of the trip a little over 100 miles. That was all autonomous and that was 10 years ago. More and more trucks in the southwestern part of the United States will be making autonomous runs, and these long runs is where they excel because they can kind of make the time and money that a human driver can't because of the laws and human nature. You got to stop and go to the bathroom, you got to stop and eat. Those things happen. So it's all about the money, as always, and you're only going to see more of it as time goes on, not less. Advanced driver assistance tech is supposed to make cars safer, meaning lower insurance rates. Right, not so fast. You're listening to the Tech Mobility Show.
Speaker 1:Not so fast. You're listening to the Tech Mobility Show and webinars and stay in touch with family and friends, all in one place and for one price. Here's the best part you can enjoy a 30-day free trial. It's time to simplify your life and boost your productivity. Aonmeetingscom, where innovation meets connection.
Speaker 2:Get started today and revolutionize the way you communicate social media is the main place to be these days, and we are no exception. I'm ken chester, the tech mobility show. If enjoy my program, then you will also enjoy my weekly Facebook videos, from my latest vehicle reviews to timely commentary of a variety of mobility and technology-related topics. These short features are designed to inform and delight. You. Be sure to watch, like and follow us on Facebook. You can find us by typing the Tech Mobility Show in the search bar. Be sure to subscribe to our Facebook page. Social media is the place to be these days, and we're no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Instagram videos, from the latest vehicle reviews to timely commentary on a variety of mobility and technology-related topics. These short features are designed to inform and delight. You be sure to watch, like and follow us on instagram. You can find us by typing the tech mobility show in the search bar.
Speaker 2:For those of you that listen to podcasts, we have just the one for you. Hi, I'm Ken Chester. Tech Mobility Topics is a podcast where I upload topic-specific videos each week. Shorter than a full show. These bite-sized programs are just the thing, particularly if you're interested in a particular topic covered on the weekly radio show. From Apple Podcasts to iHeartRadio and many podcast platforms in between, we got you covered.
Speaker 3:Just enter Tech Mobility Topics in the search bar. Wherever you listen to podcasts, that light tells you this. Nissan Sentra Coupe is low on washer fluid, but it's also an indicator of the Sentra's level of standard equipment. It has steering, more horsepower, tilt, steering wheel and wider tires. It's also won two caa awards in the 90s, which is exactly two more than trussell has. Plus, it costs hundreds less. You just hate it when you run out of wiper fluid. Visit your nissan dealer today and test drive a nice, clean, centric coupe, because it's time to expect more from a car.
Speaker 2:The Nissan Sentra, a vehicle that is still in the Nissan company lineup, a dependable, solid, rock, solid rock star of a car that they've been building for over 40 years, and back then that ad was from 1995. Ooh, more power, bigger tires, power steering. Probably still had what we call hand crank windows, not power windows, power windows, power steering, air conditioning. Back in the day, folks was optional optional hydraulic brakes, manual steering, air conditioning. Power steering came first, power brakes came second, but for the longest time, even up into the early 1990s, air conditioning was not a standard feature on every vehicle. It is now.
Speaker 2:You wouldn't think of owning a vehicle without air conditioning, but back then, yeah, it was extremely possible to own a vehicle without air conditioning. And back in the day where I grew up in New England, as I've told you before, it only got brutally hot two weeks a year back then, and that was the middle of August. June, july were okay, they were warm, they weren't hot. You rolled down the window, you had a breeze, life was good. You only really needed it for two weeks and most people did not spend the money. They did not spend the money, they did not see the reason why they needed to. So if you bought a car in the early 1980s in New England, chances are it didn't have air conditioning. My first new car did not and I bought it off the floor at Newton Chrysler, plymouth in Newton Massachusetts, about three blocks from where we lived Did not have air conditioning, matter of fact. I don't think my second car had air conditioning and I'm not sure about my third car, which by that time was an 86. Of all Sentra I think I ended up. I did not own a vehicle with air conditioning until my 89 Plymouth Acclaim. I think that was the first one that had air and that's the fourth car I owned. So yeah, just an interesting thing, thought I'd share. Now.
Speaker 2:For years it was common knowledge. We kept being told by all the safety security folks that with the dawn of this suite of advanced driver assistance technologies lane change mitigation, blindside warning, rear vehicle warning, automatic emergency braking, all this stuff, all this suite of safety features anti-lock brakes, traction control would not only reduce the number of severity of traffic accidents, but that motorists would expect a reduction of insurance rates as a result Makes sense, right. More safety equipment mitigates accidents and in fact accidents have in fact gone down. But something terrible has happened that basically wipes out all those savings, and it's one of those unintended consequences. This is topic A. Let me give you an example.
Speaker 2:You're in an accident, your airbags deploy, the chances of your insurance company totaling the car are pretty high. And why would they do that? It's very easy Once the metal's been compromised even if an expert crackerjack body shop was able to restore it, that metal's been fatigued, meaning that the crash pressures against it. The sensors won't work right because the metal is not at the integrity that it was when it was new. They don't want to take the chance, even if they did everything right and perfect. The vehicle structure has been compromised and once it's been compromised it is never truly really the same. And those sensors are engineered on certain given certain pressures and certain force exertion in order to react, report or whatever.
Speaker 2:Back in the day you got in an accident, they'd take a look at it, they'd fix it, put you back in the road, all is good. And I'm sure you've asked yourself well, wow, it was only about $3,000 worth of damage. Why did they total the vehicle? Because they did not want to be liable for a malfunction of those sensors, any future or consequential accident where you might even just tap it and it crumples and you get hurt where either the airbags or the safety equipment didn't deploy as designed, because the sensors either weren't calibrated right or they were, but the metal around it and the structures around them had been compromised in a previous accident. That is what's causing your insurance premiums to go up.
Speaker 2:Equipping vehicles with driver assist technology has an increased cost of insurance and auto repairs and, in one person quoted, it's almost becoming too expensive to fix the car. Let me give an example. Features like automatic emergency braking have helped reduce claims frequency by 25% over the past five years, so that's good, but a 60% increase in claim costs have offset any financial savings in that period. What happened? Well, automatic emergency braking is or front braking, is the vehicle's sensors realizing that something's in front of you stopped dead and it reacts faster than you could perceive or act personally, bringing the vehicle to a stop or, at the very least, breaking its speed down to a safe level?
Speaker 2:The problem is those sensors and everything that goes with them, the wiring and everything. When they get damaged, they have to be replaced and recalibrated. Oh, and if and if the windshield get cracked, it's not just the same as replacing a windshield. There are sensors in your windshield. Those have to be recalibrated and paid for and, like the automakers are like insurance companies, they hate risk. So they've over-engineered all this stuff to be safe. They cannot afford to have it fail normally under normal circumstances. But the problem is in over-building this stuff. It made it way more expensive.
Speaker 2:Here's something that scared me a little bit in doing the research for this story. They say there's 33,000 automotive repair shops in the United States. They said only a handful have the proper lighting, perfectly level floor and automaker-specific targets to calibrate sensors. And you know why? Because it could cost between $600,000 to $1 million to outfit one shop with the right equipment One shop. So what are people doing? Well, if the insurance company didn't hold the vehicle but the sensors need to be replaced, they may choosing to not calibrate the sensors.
Speaker 2:So not only do you have sensors in a compromised vehicle, but they haven't been calibrated, meaning they're not going to work right or work at all. Then maybe they trade or sell the car and you're the second owner. You get it, you're in an accident and stuff doesn't work the way it's supposed to. The airbags didn't deploy, the sensors didn't warn you. You got hurt. You didn't know that the vehicle you bought had compromised sensors that hadn't been calibrated. The you didn't know that the vehicle you bought had compromised sensors that hadn't been calibrated. The insurance company wants none of that. That's why they're willing to total the car and the problem is that is reflected in your rates. So the question is is ownership still the answer? Is ownership still the answer where it costs over $12,000 a year to own and operate a vehicle, of which about $2,000 of that's insurance? Maybe we need to take a look at this whole model of private vehicles. Maybe we're past the point of ownership. Maybe it just doesn't make sense anymore to own a vehicle From factories to dealerships. Thieves are targeting auto industry cargo we explore next.
Speaker 2:This is the Tech Mobility podcast. Just about anywhere you can enjoy podcasts. Be sure to follow us from Apple Podcasts, iheart Radio and many platforms in between. We are there. Just enter the Tech Mobility podcast in the search bar. Wherever you listen to podcasts, social media it's the place to be. We no exception. Hi, I'm ken chester, host the tech mobility show several times a week. I post to tiktok several of the topics that I cover on my weekly radio show. It's another way to keep up on mobility, technology news and information. I've built quite a library of short videos for your viewing pleasure, so be sure to watch, like and subscribe. That's the tech mobilityility Show on TikTok. Check it out.
Speaker 2:From finished vehicles on the dealership lot to railroad marshalling yards, to even parts and entire engines off of factory assembly lines, cargo theft in the automotive industry has become big business. According to the Federal Bureau of Investigation, during 2023, there were 1,360 cargo thefts worth over $35 million, and that was within the United States. Yikes, this is topic B. Let me give you some context In 2012,. Well, first let me back up. Let me define what cargo theft is. Then I'll give you the numbers.
Speaker 2:According to the FBI, cargo theft is defined as that constitutes, in whole or in part, a commercial shipment of freight moving in commerce. So it's not the equivalent of somebody stealing an individual's car. We're not talking about that. We're talking about thieves working within the auto industry to steal wholesale. They ain't stealing a part. This is not like Johnny Cash's legendary song from way back in the day, one Piece at a Time. And if you didn't know the song, it's where he basically stole him a Cadillac over 30 years working on the line at GM and tried to put it all together. It was interesting. The video was funny, you know. No, we're not talking about that. In 2012, there were 183 cargo thefts involving vehicles or parts. The value of that theft was $4.6 million. It doesn't really jump until 2017 to 2018, where it goes from $4.9 million to $6.3 million, and then 2019, from $6 million it doubles to $13.3 million, and then by 2023, more than doubles again to $35 million.
Speaker 2:Why does it matter to you? Why do you care? Every time somebody does that one, at the very least, if it's your car or a part you're waiting on, then it just extended the time that your vehicle's out of service because it got stolen or worse. Yet it's being reflected in the cost of everything. Somebody's got to cover that the automaker or the parts company. Their insurance premiums are going to go up and they're going to pass that along. So, directly or indirectly, you get to pay for that theft.
Speaker 2:I once read an article some time ago just to give you an idea in the auto industry just how crazy this is. This is about 50 years ago. They were looking at a 1975 Ford Granada, and if you don't know what a Granada is, a Granada was a mid-sized four-door sedan that Ford built back in the day Knew. The vehicle went for about $5,000. They said in parts, in parts. If you took the car parts, sold the parts separately, it'd be worth $35,000. And that was in 1975.
Speaker 2:Imagine now, particularly the pandemic made it much worse. Remember when the automakers were struggling for computer components and things and there were no vehicles anywhere to be found. So if you had a vehicle that needed to be fixed you couldn't get parts anyway, which only helped the thieves say, ooh, we can make money. So they stepped it up and started ripping off In one really crazy situation. If you can believe this and I read it, I had to read it twice because it was nuts.
Speaker 2:I want to find this example. Oh yeah, this past April police alleged the two former workers at Kia India this is in India, get this now stole 1,008 engines worth $2.3 million from a factory over three years. How do you steal an automobile engine? Even in a small Kia, those engines weigh two 300 pounds. Number one, number two, with just in time inventory. I don't even know how they got around that. That had to be a seriously inside job, because one of the things that, at least in America, they adopted is something called just-in-time inventory. What that means is there's no work and process inventory on the floor from the supplier waiting to be put in a vehicle. The supplier gets the order, they build it, they send it and it gets to the assembly line minutes before it's to be installed Minutes literally. Hence called just-in-time because it gets there just-in-time. So I don't know what kind of inventory process they were using in India, to where you could miss that many engines, because that meant cars were missing, engines that had to mess up the assembly line. One or two would have been bad enough, but over a thousand Yikes. That was then.
Speaker 2:This past March in the United States, police recovered eight stolen Chevy Corvettes valued at $1.2 million, and they stole them from the plant in Bowling Green, kentucky. How do you do that? Again, some folks had to have some knowledge. I could almost think it came off the line and parked them in the marshalling yard, and maybe they paid a security guard to look the other way. That's the only way they had to be finished. Cars waiting to be shipped, because there's something called a marshalling yard at each assembly plant where they park the cars waiting to either be shipped out by truck or by rail or whatever. So there could be a moment where those vehicles could have been driven off.
Speaker 2:But trust me, you don't just walk into an automobile assembly plant. You don't get on the ground, you don't. No, no, every automaker has their own security, and I do mean the word when I say force. They've got fences, they've got video, they've got cameras. Yeah, you ain't going to do that unless you had some help, particularly Corvettes, because we ain't talking hundreds of thousands of them, and they managed to steal eight of them, eight of them, yikes.
Speaker 2:Now the good news typically, if it's whole cars, usually law enforcement is able to get a lot of them back, but they don't get them all back. I think in the case of GM, with the suite of security features that come with OnStar, where they can track them and literally shut them down remotely, should have mitigated some of that quite a bit. You would think. But yeah, this is the thing that's happening. It's happening in the auto industry, it's been happening for decades, but again, with the average cost of a vehicle around $50,000 and the fact that there's so many parts that are so valuable, that people need and that are required in the manufacturing of an automobile, most people don't realize that your average automobile factory works with anywhere from 700 to 1,500 different suppliers around the world and they're assembling in a vehicle roughly 15,000 parts and it roughly takes 24 hours from the time that job is started as a frame to the time it rolls out the end of the plant, fully made. A lot of things can happen in a course of a day, parts going every which way, but it's a choreographed dance. So in order, you're not just going to walk into a plant and walk out. It don't work that way.
Speaker 2:Thieves are getting bold and they're getting sophisticated and as long as autos continue to be a place where money can be made and people think it's still worth the risk, they will continue to do it. The problem can be made and people think it's still worth the risk, they will continue to do it. The problem is we all pay for it. That ends up costing all of us. But I wanted to share that with you because it's gotten crazy in the last few years. It's just gotten out of control and with the rise of EVs and all these electronics they anticipate it will only continue to get worse. We'll see what happens, particularly with these vehicles that drive themselves. I wonder what happens if you're able to hack the thing, can you get it to drive to your house, and then you have the vehicle and they don't know where it went. That will be something worth watching as these EVs evolve in the coming years. If that becomes a thing that they literally steal them in plain sight, as of the end of September, ev credits are toast.
Speaker 2:Here's what you need to know we are the Tech Mobility Show. To learn more about the Tech Mobility Show, start by visiting our website. Hi, I'm Ken Chester, host of the Tech Mobility Show. The website is a treasure trove of information about me and the show, as well as where to find it on the radio across the country. Keep up with the happenings of the Tech Mobility Show by visiting techmobilityshow. That's techmobilityshow. You can also drop us a line at talk at techmobilityshow. You can also drop us a line at talk at techmobilityshow. Short videos of some of the hot topics that I cover during my weekly radio program. I've designed these videos to be informative and entertaining. It's another way to keep up on current mobility and technology news and information. Be sure to watch, like and subscribe to my channel. That's the Tech Mobility Show on YouTube. Check it out.
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Speaker 2:Social media is the place to be these days, and we're no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Instagram videos, from the latest vehicle reviews to timely commentary on a variety of mobility and technology-related topics. These short features are designed to inform and delight you. Be sure to watch, like and follow us on Instagram. You can find us by typing the Tech Mobility Show in the search bar.
Speaker 2:Recent legislation passed by Congress and signed by the president will bring dramatic changes to EV policy in the United States. One very public result of this changing tide is the elimination of EV credits as of the end of September. But as one famous circus parker said, wait, there's more. This is Topic C. Regardless of where you are on the spectrum, whether you love EVs, hate EVs, think everybody should drive them, think nobody should make you drive them, doesn't matter. I want to share with you some truth, some facts here, so that you can whatever when you have the conversation, you can tell it right. So let me start. I'm just going to walk you down some things, things you know, some things you might not know. So let's get started. First of all, the obvious federal tax credit for new EVs, which is $7,500, will end September 30th this year. Federal tax credit for used EVs and that was the one recently passed in one I think it was the not to build back better, but one of the previous administrations passed where you could get a credit for buying a used EV, subject to certain qualifications. That $4,000 credit will also end same day, end of September. For those of you in business, it's called the 45W Commercial Clean Vehicles Credit. In business it's called the 45W Commercial Clean Vehicles Credit. In other words, the government will help you subsidize a purchase of a clean commercial truck vehicle, whether it is alternative fuel or hybrid EV truck, whatever. That was up to $40,000 per vehicle for companies buying electric cars or trucks and that includes businesses that lease the vehicles to consumers. That also ends September 30th. So if you were a leasing company that was buying vehicles to lease out, buying clean vehicles, and you were getting a credit, that credit goes away.
Speaker 2:Here's something that you didn't know the bill eliminates penalties for automakers that fail to meet federal corporate average fuel economy standards. No penalties for meeting them, for not meeting them. So what does that mean? It means, number one, that if you're an American consumer that you're going to pay more for fuel Because the vehicles which would have been more efficient. Now there's no incentive for them to continue and there's a caveat in that. I want to finish reading this. I'm going to come back to the caveat reading this. I'm going to come back to the caveat.
Speaker 2:It also, if an automaker was literally on a cusp, makes them less competitive globally, because every automaker that sells in the United States sells around the world and it's not one size fits all. They have to deal with all of this stuff. They're spending billions of dollars, so they want to get the most bang for their buck. This really honestly doesn't help the automakers when you think about it. Because if the rest of the world is demanding tougher standards and the United States picks their foot up and says, no, no, it's okay, you don't need it, it's okay If the automaker does that in the United States, they still got to spend that money overseas. So why not spread that cost over the vehicles you're selling here and now? You won't, because you took your foot up. That makes you less competitive, not more competitive.
Speaker 2:And with the price of gasoline being what it is right now and here in Iowa, if you are buying ethanol what we call E15, which is 15% ethanol it's still hovering right around $3 a gallon. It's just a tick below three. That's high around here. We've been paying in the low twos for the longest. This should take prices up, actually, because if cars are less efficient then they're going to consume more. That's going to create more demand. That's going to drive prices up.
Speaker 2:Something else that you may not have realized alternative fuel refueling, property credits, credits you could get at home for installing an EV charger, for example those end next June, june 30th, 2026. Now it does not affect any state level programs for any state. So if your state has some sort of EV credit or alternative fuel refueling credit or something like that, not a problem. But there's more. You may have heard this there is a deduction for car loan interest for American-made vehicles. What you may not remember, unless you're a person of a certain age, is until 1991, what we used to call retail interest on retail credit, like credit cards and car loans and stuff, was all deductible. That went away over 30 years ago. They're bringing it back just for American-made vehicles.
Speaker 2:My problem is, whose definition of American-made? Is it 50%, 60%, 70%, because there ain't no vehicle on the road, even the ones that have high American content, that are 100% American-made. Tesla's come the closest, some Honda's second, but not 100%, 100%. So who's going to set that bar the Commerce Department? And what are they going to use to set it? And how are they going to measure it, because vehicles and content come from all over and literally could change year to year? So there's that From 2025 to 2028, interest paid on loans for purchasing a personal used vehicle will no longer be considered personal interest and can be deducted.
Speaker 2:Final assembly must occur in the United States. That's one definition Max deductible interest of $10,000 per year and it phases out for taxpayers that make more than $100,000 single and $200,000 joint. But you only get it for three years. What's the point? The average car loan is five and right now, probably if you're driving a pickup truck that costs you north of 60, you're probably got a six or seven year note on that, and if you just bought it this year, you're only going to get credit for three. You're still going to be hard out of pocket.
Speaker 2:Okay, here's another one. This is an interesting curve that you may not know about Energy storage. It's called the 48E Investment Tax Credit. It has a domestic content requirement for both the facility and the technology. But now you've got to meet both. And there are only three companies in the United States doing that now LG Energy, envision, aesc and guess what, tesla Interesting. But remember, you thought it was just EV credits. Let me give you this. I'm talking to you, homeowners Rooftop solar.
Speaker 2:The bill terminates the 30% tax credit for rooftop solar installations at the end of this year. If you were thinking about installing solar, do it now, because you won't have that. You will not have that credit after the end of the year. Same thing goes with tax credits for geothermal heat pumps and other home devices end of the year All sorts of things. The bill kills clean electricity investment and production tax credits for wind and solar that have been in place since 1995 and 1992. Solar and wind farms and antiservice after 2027 will no longer be eligible for the credits. This is going to bring the renewable industry to a screeching halt, which means that's going to have some real nasty impact out here in Iowa, because we both do solar and we do a lot of wind out here. So there's a lot in it, a lot of what you know is going to be at the end of this year Some are staggered Solar, wind, ev credits gone, if you're a homeowner, gone.
