WASHINGTON — General Motors said on Wednesday it’s offering incentives of $7,500 on its electric vehicles that earlier this week lost a U.S. government tax credit, while Ford Motor said it’s climbing the costs of a few of its F-150 EVs by $10,000.
The Treasury issued guidelines in December detailing recent battery sourcing requirements geared toward weaning the U.S. EV supply chain away from China. The rules took effect on Monday.
GM said last month that each one of its EVs would temporarily lose eligibility except the Chevrolet Bolt, adding that the Cadillac Lyriq and Chevy Blazer EVs are losing the credit due to two minor components. (The Blazer, meanwhile, is currently under a stop-sale order while Chevy applies a software fix.)
GM told its dealers it would supply the equivalent EV tax credit purchase amount “for any vehicles that became ineligible on account of the brand new guidelines.”
GM expects that after a sourcing change, the Lyriq and Blazer EVs will regain eligibility in early 2024 and said its Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV and Cadillac Optiq produced “after the sourcing change shall be eligible for the total incentive.”
Ford Lightning prices
Ford said on Wednesday it could increase the worth of its lowest-priced F-150 EVs by $2,000-$7,000 and cut prices of some premium models by $5,000.
Ford said in October it was temporarily cutting one shift at its plant that builds the F-150 Lightning EV. The automaker told suppliers in December that it planned to provide about 1,600 electric F-150 Lightning EV trucks per week starting in January, roughly half of the three,200 it previously had planned.
The Detroit News reported these prices by trim for the 2024 Ford F-150 Lightning, which will not be yet on dealer lots. These don’t reflect the $1,995 destination fee:
- Pro (240-mile range): $54,995 (up $5,000 from 2023)
- XLT 311A (240-mile range): $64,995 (up $7,000)
- Lariat (320-mile range): $79,495 (up $2,000)
- Platinum (300-mile range): $84,995 (down $5,000)
- Platinum Black (300-mile range): $92,995 (down $5,000)
Even with the worth cuts, nevertheless, neither of the highest trims would qualify for the EV tax credit because they exceed the worth cap of $80,000.
Ford said last month its E-Transit would lose its $3,750 tax credit, as would the Mach-E, however the Lightning and the Lincoln Corsair Grand Touring sport-utility vehicle retained credits.
The 2022 Inflation Reduction Act law reformed the EV tax credit, requiring vehicles to be assembled in North America to qualify for any tax credits, eliminating nearly 70% of eligible models on the time.
The IRA rules have a loophole, nevertheless, which allows leased EVs to qualify for $7,500 tax credits without the battery or North America assembly requirements. Ford, the Detroit News reported, will offer a $7,500 money incentive on 2023 Mach-Es leased through through Ford Credit, and that is on top of the $7,500 tax break.
Other models
Other vehicles losing the EV purchase credit include the Volkswagen ID.4, Nissan Leaf, and a few Tesla Model 3s, the U.S. Treasury said. The variety of EV models qualifying for U.S. EV tax credits fell from 43 to 19.
The brand new rules allow buyers to say tax credits of as much as $7,500 at participating dealerships at the purpose of sale. The tax credit sets limits on vehicle price and buyer income to qualify.
Volkswagen said on Monday it “is within the means of confirming eligibility for a federal EV tax credit for vehicles” after Jan. 1.
This Article First Appeared At www.autoblog.com
