GM Reverses Course on Last-Minute EV Tax Credit Claim
General Motors (GM) recently announced a significant change regarding its electric vehicle (EV) tax credit program. The company has decided to abandon its initiative that would have allowed dealers to offer a $7,500 tax credit on EV leases following the expiration of the federal subsidy on September 30.
Background of the Initiative
In late September, GM had devised a plan where its financing division would purchase EVs from dealers’ inventory. They intended to apply for the federal tax credit just hours before the deadline. This strategy aimed to incorporate the tax credit into customer lease agreements.
Decision to Scrap the Program
However, GM reversed its decision and opted not to claim the tax credit. This choice was influenced by concerns raised by Republican Senator Bernie Moreno, a former car dealer involved in automotive policy discussions. GM stated the decision was made after further consideration of the implications.
Impact on Dealers and EV Sales
The original aim of the program was to alleviate the pressure on dealers who feared they would struggle to sell their EVs post-subsidy. GM planned to apply for the tax credit on a substantial number of EVs held by dealers.
Comparison with Rivals
Ford had previously introduced a similar program before the subsidy expiration. However, it remains unclear if Ford is continuing its initiative. A spokesperson from Ford did not provide any comments on the matter.
- Company: General Motors (GM)
- Tax Credit Amount: $7,500
- Tax Credit Expiration Date: September 30
- Influencing Figure: Senator Bernie Moreno
- Key Decision: Program scrapped
This decision marks a notable shift in GM’s strategy as the automotive industry navigates the changing landscape of electric vehicle incentives and sales dynamics.
