Auto giants Ford and General Motors (GM) are now revising their pricing strategies for electric vehicles (EVs) in response to the recent release of the updated roster of EVs qualifying for the $7,500 federal tax credit by the US Treasury, according to a report by PCMag.
NILES, ILLINOIS - JULY 18: A 2023 Ford F-150 Lightning EV is offered for sale at Golf Mill Ford on July 18, 2023 in Niles, Illinois. Yesterday Ford announced that it was cutting prices on the Lightning truck by as much as $10,000.
GM Feels the EV Tax Credit Impact
GM encountered a setback as several of its EV models, including the Blazer, Equinox, and Silverado lost eligibility for the tax credit due to the utilization of GM's new Ultium battery platform, which needed to meet the stringent requirements.
The disqualification resulted from the foreign-sourced battery components in the Ultium pack. However, GM retained eligibility for the temporarily discontinued Bolt EV/EUV, which employs a different battery pack.
In response to the ineligibility for the $7,500 federal tax credit on its latest EVs, GM has introduced its own $7,500 credit for customers whose vehicles no longer qualify under the new guidelines.
This initiative is perceived as an attempt to sustain affordability and bolster domestic EV manufacturing capacity, as noted by Andrew Rogers, a former senior official at the US Department of Transportation.
Ford Increases the Base Price of F-150 Lightning
Ford, on the other hand, has maintained the full $7,500 credit for its F-150 Lightning, establishing it as the sole electric pickup eligible for the complete tax credit.
The robust sales performance of the F-150 Lightning, combined with its tax credit advantage, likely prompted Ford to raise the base price of the entry-level F-150 Lightning by $5,000, according to PCMag.
Although this adjustment has been communicated to dealers, the company has not officially announced these changes.
The pricing modifications for various F-150 Lightning trims exhibit variations. The Pro trim witnesses a $5,000 increase, the XLT 311 A trim experiences a $10,000 hike, and the XLT 312 A trim is discontinued.
In 2023, Ford introduced two new specialty trims: the Flash, characterized as a "tech-forward" model with no price increase, and the limited-edition Platinum Black, which underwent a $5,000 reduction.
These pricing adjustments reflect Ford's strategic approach to balance the market demand, tax credit advantages, and the introduction of new trims in their electric vehicle lineup.
Here's the list of the pricing adjustments provided by PCMag:
- Pro: $5,000 increase to $54,995 (240-mile range)
- XLT 311 A: $10,000 increase to $64,995 (240-mile range)
- XLT 312 A: Eliminated in 2024 ($69,995, 320-mile range)
- Platinum: $7,000 reduction to $84,995 (300-mile range)
- Platinum Black: $5,000 reduction to $92,995 (300-mile range)
- Flash: No increase, new "tech-forward" trim for $73,495 (300-mile range)
- Lariat Standard: Eliminated in 2024 ($69,995, 240-mile range)
- Lariat Extended: $2,000 increase to $79,495 (320-mile range)
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