NEW YORK, April 5 (Portal) – Ford Motor Co (FN) and Chrysler parent Stellantis (STLAM.MI) announced Wednesday that tax credits on most of its electric and plug-in hybrid models will rise to $3,750 on April 18 Dollars to be halved after new US financial rules come into effect.
The rules, unveiled Friday, were mandated by Congress in August as part of a $430 billion climate bill. China dominates global supply chains of products like EV batteries and solar panels, and the rules aim to shift US battery production and supply chains away from China.
Of six Ford vehicles, only the F-150 Lightning Pickup and Lincoln Aviator Grand Touring are still eligible for a $7,500 credit. For the other models currently receiving credit — the Ford Mustang Mach-E, Ford E-Transit, Ford Escape Plug-In Hybrid, and Lincoln Corsair Grand Touring — the credit will drop to $3,750.
Stellantis said of its three plug-in hybrid electric models, its Chrysler Pacifica plug-in electric hybrid will be available after March 18.
“We will make sure our products can take advantage of these subsidies,” Stellantis CEO Carlos Tavares told reporters on the sidelines of the New York Auto Show, adding the loans are a “key driver for the industry because they improve affordability.” influence”.
The U.S. Treasury Department’s stricter EV battery procurement guidelines, released Friday, are triggering new requirements for critical minerals and battery components.
Ford said in March it expects its electric vehicle division to lose $3 billion this year but will remain on track to an 8% pretax margin through the end of 2026.
Sales of Ford’s electric vehicles rose 41% in the first quarter, data showed on Tuesday.
General Motors (GM.N) said last week it expects some electric vehicles (EVs) to be eligible for the $7,500 tax credit after the new policy goes into effect, including the Cadillac Lyriq and upcoming ones Chevrolet Equinox EV SUV and Blazer EV SUV.
GM is currently receiving that amount for the Chevrolet Bolt, and the upcoming Chevrolet Silverado EV would have been eligible. GM said it anticipates Bolt vehicles would still qualify for some level of credit.
Tesla (TSLA.O) said last week that the Model 3 rear-wheel drive credit will be reduced as a result of the guidance.
All US EV excise tax credits require vehicles to be assembled in North America and have income and retail price caps.
Electric vehicles leased by consumers may qualify for up to $7,500 in commercial clean vehicle tax credits without the same limitations. These credits go to the company that owns the vehicle and not to the consumer who rents it.
Reporting by David Shepardson in New York and Nathan Gomes in Bengaluru; Edited by Krishna Chandra Eluri, Shounak Dasgupta, Kirsten Donovan and Diane Craft
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