Ford Motor mentioned on Wednesday it’s unlikely Mustang Mach-E electrical autos at present in vendor showrooms will qualify for federal tax credit starting in January.
The U.S. Treasury issued steering final week detailing new battery sourcing restrictions that take impact Jan. 1 geared toward weaning the U.S. EV provide chain away from China. The present mannequin Mach-E at present qualifies for a $3,750 federal tax credit score.
Ford mentioned it was nonetheless reviewing if its F-150 Lighting EV truck will qualify after Jan 1 for tax credit. The corporate declined to element why it expects the Mach-E to lose the credit score.
The No. 2 U.S. automaker has offered 35,908 Mach-E EVs within the U.S. within the first 11 months of the 12 months, up 3.5% over the identical interval final 12 months. In October, Ford mentioned it was slicing some Mach-E manufacturing.
Ford additionally mentioned in October it was suspending about $12 billion in EV investments, together with delaying its second battery plant in Kentucky.
Ford additionally mentioned in October it was quickly slicing one among three shifts on the Michigan plant that builds its F-150 lightning, citing a number of constraints, together with provide chain points.
Ford advised sellers in accordance with a bulletin seen by Reuters in regards to the tax credit score and mentioned the expiration is “a wonderful motivator to buy earlier than the top of the 12 months. This can be a nice time to succeed in out to clients in your pipeline to shut the sale and guarantee they can obtain the credit score.”
Ford additionally advised sellers that incentives for 2023 mannequin Mach-E and F-150 Lightning gross sales and leases could be prolonged.
Basic Motors mentioned Friday that it expects lots of its electrical autos to qualify for U.S. tax credit subsequent 12 months after new stricter guidelines limiting Chinese language battery content material take impact on Jan. 1.
Volkswagen mentioned Wednesday it’s “cautiously optimistic that the Chattanooga-assembled 2024 mannequin 12 months ID.4 will qualify for the total $7,500 Tax Credit score” subsequent 12 months.
In December 2021, Ford had mentioned it anticipated to triple the output of its all-electric Mustang Mach-E to over 200,000 items per 12 months by 2023 for North America and Europe.
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