GM is about to become the second automaker to see its federal tax credit for electric vehicles start to phase out and it announced that unlike Tesla, it will not adjust the Chevy Bolt EV prices to compensate.
Spokesperson Jim Cain confirmed the news and said (via Reuters):
“it is easier to react to the market by working with dealers and your marketing team than it is to change sticker prices.”
Chevy Bolt EV sales in the US haven’t been to the level first expected when GM launched the vehicle over 2 years ago.
They have maintained sales of roughly 1,000 units per month.
That’s with $7,500 in federal tax credit offered with each vehicle purchase – virtually bringing the base price down to about $30,000.
Earlier this year, GM hit the electric vehicle tax credit threshold of 200,000 EV deliveries in the US, which triggered a phase-out period.
Starting next month, Chevy Bolt EV buyers will only get $3,750 in federal tax credit, but GM believes it can work with its dealers to compensate.
On the other hand, Tesla’s federal tax credit already started to phase out and the automaker reacted by reducing prices in the US.
Tesla, GM, and others have launched an effort to reform the electric vehicle tax credit.
Unfortunately, I think GM is going to have a hard time selling the Bolt EV without the full federal tax credit.
While not a compliance per se, it was always a vehicle program that was dependent on incentives – both for consumers and for GM.
We have known for a while now that without the full value of the ZEV credits, GM wouldn’t be making money on the vehicle.
It’s likely also why they don’t want to cut prices and further reduce the price.
What do you think? Let us know in the comment section below.
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