GM Rolls Out $7,500 Incentives for EVs Post Tax Credit Loss, While Ford Lightning Sees Price Hike

General Motors (GM) made a move on Wednesday, sweetening the deal for its electric vehicle (EV) buyers with a $7,500 incentive, compensating for the recent loss of a U.S. government tax credit. In a parallel development, Ford Motor decided to increase the prices of select F-150 EVs by $10,000, making waves in the electric vehicle market.

Temporary Setback for Lyriq and Blazer EVs

GM faced a setback when the U.S. Treasury introduced guidelines in December, reshaping battery sourcing requirements to reduce dependence on China within the EV supply chain. Consequently, GM announced last month that all its EVs, except the Chevrolet Bolt, would temporarily lose eligibility. The Cadillac Lyriq and Chevy Blazer EVs, in particular, faced this loss due to two minor components. However, GM assured dealers that it would cover the equivalent EV tax credit for any vehicles affected by the new guidelines. The company anticipates that after a sourcing adjustment, the Lyriq and Blazer EVs will regain eligibility in early 2024.

Meanwhile, the Chevrolet Blazer EV is undergoing a stop-sale order as Chevy works on a software fix.

Ford Lightning Prices Undergo Changes

Ford took a different approach, opting to increase the prices of its lower-end F-150 EVs by $2,000-$7,000 while simultaneously reducing prices on certain premium models by $5,000. The adjustments come as Ford grapples with production shifts at its F-150 Lightning EV plant. The company had initially planned to produce 3,200 electric F-150 Lightning trucks per week, but in December, it informed suppliers of a revised plan to produce approximately 1,600 units weekly starting in January.

The Detroit News reported the anticipated prices for the upcoming 2024 Ford F-150 Lightning by trim, sans 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)

Despite the price adjustments, the top trims would still surpass the $80,000 price cap, making them ineligible for the EV tax credit.

Ford previously announced the loss of the $3,750 tax credit for its E-Transit and Mach-E, but the Lightning and Lincoln Corsair Grand Touring SUV retained their credits. The 2022 Inflation Reduction Act reformed the EV tax credit, requiring North American assembly for eligibility, leading to a reduction in qualifying models.

While some EV models, including the Volkswagen ID.4, Nissan Leaf, and select Tesla Model 3s, lost the EV purchase credit, the new rules allow buyers to claim tax credits of up to $7,500 at participating dealerships during the point of sale. However, there’s a cap on vehicle price and buyer income for qualification.

In summary, GM and Ford are navigating the evolving landscape of EV incentives and pricing, responding to regulatory changes and market dynamics.