By Nora Eckert
DETROIT (Reuters) – Ford Motor Company has decided to retract a plan that would have allowed dealerships to provide a $7,500 tax credit on electric vehicle leases following the expiration of the federal subsidy on September 30, the company announced on Thursday.
A Ford spokesperson stated, “We will not be utilizing the EV tax credit but will continue to uphold the competitive lease rates currently available in the market.”
This decision comes on the heels of a similar announcement from General Motors on Wednesday. While other manufacturers like Hyundai and Stellantis have provided cash incentives to help buyers, Ford and GM have chosen a different strategy.
The financing divisions of the two automakers intended to begin purchasing electric vehicles from their dealers’ inventories, applying for the $7,500 credit on those vehicles and incorporating that amount into the leasing arrangements for consumers.
For those looking to buy an electric vehicle, Ford Credit is still offering 0 percent financing over a 72-month term along with additional incentives, according to a spokesperson.
General Motors decided to terminate its program after receiving feedback from Republican Senator Bernie Moreno of Ohio, a former car dealer with a vested interest in auto industry policies, a source familiar with the situation informed Reuters. The rationale behind Ford’s cancellation remains unclear.
Both Ford and GM crafted their plans in conjunction with discussions involving officials from the Internal Revenue Service, as previously reported by Reuters.
Some automotive executives, including Ford CEO Jim Farley, have indicated that electric vehicle sales could decline considerably without the tax credit. Conversely, other industry leaders, such as the CEO of Hyundai Motor North America, have asserted that the electric vehicle market is more robust than it may appear.
(Reporting by Nora Eckert; Editing by Chizu Nomiyama)
