GM EV sales are positioned to benefit more than rivals from the new U.S. rules for EV tax credits in the immediate future, Bloomberg reported based on statements by Matt Ybarra, a company spokesman.
Ybarra says the GM EV lineup will contain five models by the end of 2023 that will qualify for the full $7,500 in tax credits (officially known as the Clean Vehicle Credit) under the guidelines laid out by the Inflation Reduction Act and U.S. Treasury.
Four of the GM EV nameplates are the Cadillac Lyriq, the Chevy Equinox EV, the Chevy Blazer EV, and the Chevy Silverado EV. The fifth to go on sale before the end of 2023 might be the small Cadillac electric crossover The General revealed to dealers a year ago in March 2022.
The new, publicly unnamed compact crossover EV will share many stylistic details with the Chevy Equinox EV, as revealed by photos obtained of it by GM Authority spy photographers during prototype testing. Its size is roughly on par with that of the compact Cadillac XT4 crossover.
Trademark filings reveal possible names for this small GM EV, including Ascendiq, alongside Vistiq, a 2021 filing for Lumistiq, and a refiling of the previously expired Optiq trademark application. Several sources have confirmed production will take place in Mexico at GM’s Ramos Arizpe plant.
North American assembly of an EV is one of the eligibility requirements for the Clean Vehicle Credit. Per the Alternative Fuels Data Center of the U.S. Department of Energy, the United States, Canada, Mexico, and Puerto Rico all count as part of North America for eligibility determination purposes. Building the small Cadillac crossover in Mexico therefore meets Clean Vehicle Credit stipulations for final assembly in North America.
Relatedly , The General plans to produce the Ultium batteries used in EVs sold in the North American market at several U.S. plants. These include the Ultium Cells Lordstown facility in Warren, Ohio that already operational, the Ultium Cells plant in Lansing, Michigan where construction is under way and the Ultium Spring Hill plant in Tennessee, which is also under construction. GM has also inked several mining partnerships to secure battery materials able to meet government sourcing rules.
As a reminder, EVs must be equipped with batteries with at least 40 percent of their critical minerals originating in the U.S. or allied countries, and 50 percent of their assembly taking place in North America, to qualify for the Clean Vehicle Credit. These percentages will rise over time in 10 percent annual increments to respective caps of 80 percent and 100 percent.
Beyond the five models discussed, several GM EV models will qualify only for partial tax credits or none at all. The Chevy Bolt EV and Chevy Bolt EUV will qualify for half of the maximum tax credit, or $3,750. The GMC Hummer EV SUV and GMC Hummer EV Pickup will receive no tax credit because their MSRP exceeds the $80,000 maximum set by the Clean Vehicle Credit rules.
GM competitors Tesla and Ford, however, are less confident their EVs will meet the new rules taking effect on April 18th. Tesla expects the Model 3 to only partially qualify under the new regime and Ford declined to go into detail beyond saying it would help customers determine tax credit eligibility for its EVs.