2023 is off to a fast start for automotive news. Here’s what flew under the radar this week.
GM is petitioning the Treasury Department to reclassify the Cadillac Lyriq as an SUV rather than a sedan/car. The reclassification matters for the Inflation Reduction Act’s EV tax credit — the $80,000 price cap for SUVs is higher than the $55,000 cap for cars, and the Lyriq’s starting price puts it in a position where the car classification would disqualify most buyer configurations from the credit. This is a straightforward example of the IRA’s vehicle classification rules producing incentive distortions that manufacturers are motivated to work around through regulatory petitions.
CES 2023 delivered a notable amount of automotive content this year. Sony unveiled a production version of its electric vehicle developed in partnership with Honda — officially named Afeela — with a formal market entry planned. The vehicle’s feature set is heavy on software and connected services, positioning it as a technology platform on wheels more than a traditional automobile. Whether buyers will prioritize Sony’s software credentials over established automotive brands remains to be seen.
BMW’s color-changing iX concept from last year’s CES reappeared with an updated version that can shift between light and dark rather than just white. The technology uses E Ink panels embedded in the body, and while the production timeline remains unclear, it raises interesting questions about how personalization and vehicle identity evolve as cars become more software-defined. A car that can change its color is a meaningfully different product from one that can’t.
Tesla’s price cuts continue generating debate. The company has now reduced prices across multiple models by amounts that represent thousands of dollars — significant discounts that help maintain demand but also create frustration among buyers who purchased recently at higher prices. The price volatility raises questions about resale value guarantees and whether Tesla’s historically unpredictable pricing undermines customer loyalty over time.