Ford Motor stated on Wednesday it’s unlikely Mustang Mach-E electrical autos at present in supplier showrooms will qualify for federal tax credit starting in January.
The U.S. Treasury issued steerage 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 stated 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 bought 35,908 Mach-E EVs within the U.S. within the first 11 months of the yr, up 3.5% over the identical interval final yr. In October, Ford stated it was reducing some Mach-E manufacturing.
Ford additionally stated in October it was suspending about $12 billion in EV investments, together with delaying its second battery plant in Kentucky.
Ford additionally stated in October it was briefly reducing 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 informed sellers in line with a bulletin seen by Reuters in regards to the tax credit score and stated the expiration is “a wonderful motivator to buy earlier than the tip of the yr. This can be a nice time to succeed in out to prospects in your pipeline to shut the sale and guarantee they can obtain the credit score.”
Ford additionally informed sellers that incentives for 2023 mannequin Mach-E and F-150 Lightning gross sales and leases could be prolonged.
Common Motors stated Friday that it expects lots of its electrical autos to qualify for U.S. tax credit subsequent yr after new stricter guidelines limiting Chinese language battery content material take impact on Jan. 1.
Volkswagen stated Wednesday it’s “cautiously optimistic that the Chattanooga-assembled 2024 mannequin yr ID.4 will qualify for the complete $7,500 Tax Credit score” subsequent yr.
In December 2021, Ford had stated it anticipated to triple the output of its all-electric Mustang Mach-E to over 200,000 items per yr by 2023 for North America and Europe.