Treasury and the IRS sought to assist shoppers with a brand new record of automobiles that could be eligible as of Jan. 1 or later. However, the record has raised issues over how the automobiles are being categorised.
Treasury didn’t classify the Cadillac Lyriq as an SUV, for instance, which means its retail value can not exceed $55,000. The Lyriq, which Automotive News classifies as a midsize crossover, begins at $62,990.
The division used company common gas economic system, or CAFE requirements, “which are preexisting — and long-standing — EPA regulations that manufacturers are very familiar with,” a Treasury spokesperson mentioned. “These standards offer clear criteria for delineating between cars and SUVs.”
General Motors mentioned it’s addressing these issues with Treasury and hopes that “forthcoming guidance on vehicle classifications will provide the needed clarity to consumers and dealers, as well as regulators and manufacturers.”
The Alliance for Automotive Innovation, which represents GM and different main auto corporations, mentioned automakers ought to self-certify to Treasury what classification a automobile is marketed as, in response to feedback submitted to the division in November.
“There’s a great many that are in the ‘other’ classification, and that’s largely due to crossovers and SUVs causing a little bit of consternation about how they’re going to ultimately be viewed by the government,” mentioned John O’Donnell, CEO of the Washington Area New Automobile Dealers Association, including that he is “very optimistic” lots of the automobiles will find yourself with a “favorable” classification.
Meanwhile, Cadillac sellers akin to Inder Dosanjh mentioned clients curious about shopping for the Lyriq are annoyed.
“Sometimes customers think we’re making this stuff up and then we have to take them to the IRS website and show it to them,” mentioned Dosanjh, CEO of Dosanjh Family Auto Group. “We’re spending a lot of time explaining to customers why Treasury thinks it’s a car, not an SUV.”
Source: www.autonews.com