Proactive Investors - General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) are adjusting their strategies in response to changes in US government tax credits for electric vehicles (EVs).
GM is offering a US$7,500 incentive on its EVs, which recently lost eligibility for a federal tax credit, except for the Chevrolet Bolt. This loss is attributed to two minor components in models like the Cadillac Lyriq and Chevy Blazer EV.
Meanwhile, Ford is increasing the price of its lower-priced F-150 EVs by US$5,000 to US$10,000 and reducing prices on some premium models by up to US$7,000. Ford's E-Transit and Mach-E also lost the US$3,750 tax credit, but the F-150 EV Lightning and Lincoln Corsair Grand Touring retained it.
These changes follow new Treasury guidelines focusing on battery sourcing and reducing reliance on China, effective from early January.
The number of EV models eligible for US tax credits has dropped from 43 to 19. The 2022 Inflation Reduction Act requires vehicles to be assembled in North America to qualify for tax credits.