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.
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Comments
I still don’t agree that I should be forced to help pay for your EV. Buy it yourself if you want one.
OK Boomer, because we haven’t subsidized ICE-related things *oil and gas*
Keep drinking the Kool-aid Joke (good name BTW). How many gas stations has the govt built near you – EVER? Last year my lefty friends spouted the same “talking point” as you regurgitated above, so I called BS. We looked up the number on a US govt website. Yep, there it was. Under $200 million. Look again – that’s with an M. Mostly infrastructure (roads) to a new job producing oil / gas project. A drop in the bucket to what the industry pays in taxes.
The tax dollars going to EVs, and supporting / forcing EVs are what, in the $Trillions now? Who can even keep up with the numbers pouring into the govt trough?
It’s one thing to encourage methodical change, yet another to rapidly force it based on “expert intelligence.”
In my lifetime the govt as well as the “experts” have been completely wrong soooooo many times. This impending train wreck needs to be significantly slowed.
Are you sure you know the difference betwen trillions and billions? Enough said. No reply required.
Everyone benefits from those. That’s the difference, of course everyone knows that.
I am in Washington with a Hybrid Chevy Volt. I have to pay a $75/yr Electrification charge, a$150/yr EV charge, a $10 additional weight fee for the battery all on top of the WAC limited $25 car tabs limit for owning a vehicle that could plug into a charging network even though I will never pay to do so. On top of that they are creating a huge tax at the charging station to make the cost/mile for EV the same as ICE to the driver. Then they use that to fund pet Environmental projects as they see fit (no guidance or limitation in the law).
Government needs to go back to what it was designed for in the constitutions (state and federal) instead of liberal expansion of government influence to modify public behaviors that has been eroding the efficiency and personal choices of our citizens in our country and slowly giving too much power to a professional political class for the last 240 years.
OK Fine. Can you tell the oil companies stop writing off all their expenses too as many are tired of paying for all those tax writeoffs too so you have cheaper gas too and then put it on the international market to maximize their profit rather than leave it only to the USA only use. Then fair is fair. BTW how many DECADES have they been getting benefits to create cheap oil? Thats right. Fair is fair and then let the chips fall where they may even if the oil industry had a 100+ year advantage. And we have not spoken about how much military we spend in the Middle East to keep general oil flowing going for what 50 years now?
You don’t pay for it. It’s a tax CREDIT to me that’s deducted from what I owe. Your tax obligation does not change because I get a credit.
Isn’t part of the Trillion dollar “Inflation Reduction Act” (LOL)? Who funded that? Taxpayers? There are no free lunches.
every dollar that is spent above what is taken in as revenue is a burden to all taxpayers. As the debt of the goes up the interest starts to also limit the amount of money for other government activities including your tax credit. The only way out of this is to bite the bullet and start paying down the debt or devalue the dollar by increasing M1 and M2 volumes relative to the rest of the world and make the debt a smaller portion of GDP (but make everything cost more than the reduction saves in the process).
Sweeeeeeeet. So happy GM will have five EV’s that will qualify for the full $7500 Rebate.
I am sure all 1,000 Future Customers are so pumped about it. Lol
Wake me up when GM figures out how to Mass Produce BEV’s. Until then I am starting to think Mary and the team are clueless. They are missing such a Golden Opportunity to basically become second in BEV’s only to Tesla and they are just dramatically dropping the Ball. It is a shame and quite embarrassing.
I mean TWO Hummers produced…..TWO
GM is becoming a complete Complete joke. This is unacceptable.
I was never in the Mary must go camp but this is becoming ridiculous.
There are somethings I don’t agree with either but they are making money and honestly that is all that matters to most companies. They have to do this to stay alive. But I don’t think going fully electric is a good option. I believe in the next 5 years most companies are going to be half EV and half ICE.
@joe
The World is quickly changing. The Tesla Model Y became the best selling vehicle for the first quarter in Europe un-sitting the Golf.
The Model Y is way more expensive than the Golf. Let that sink in.
They are ramping up Berlin so they might or most likely will retain that Number One Spot throughout the entire year.
GM has so many orders that they cannot fulfill. And unlike Tesla thy stop taking orders so the demand most likely is sky high and they cannot fulfill it currently.
I am a GM fan and want them to be successful at everything and they are dropping the Ball badly right now.
In the first quarter of 2023 over 8% of new car sales in the US were EV’s. The tipping point has arrived. If you haven’t driven a EV, go do it and stop complaining with no firsthand experience. I recently took delivery of my 5th EV and couldn’t be happier.
8% is the tipping point?? Still in single digits and the majority of those 8% come from Tesla who builds nothing but EV’s since day one!? Hardly a tipping point.
A lot of people won’t even get the tax credit. Depends on income, depends on your tax situation. This is a credit and not a refund. You could possible buy and then not even be eligible for it come tax time.
If you buy an EV you have to take action to create a tax liability. If under 60 and still working change your W4 to add more dependents, maybe change from 1 or 2 to 10 dependents to create the tax liability. If over 60 roll some money over from a 401K to a Roth account without having taxes taken out then that will create a tax liability. See a tax pro to figure out the best way to do this.
Read RW’s reply. If you have not enough taxes withheld to receive the full credit you didn’t plan adequately and if impulse buying a EV without planning and still don’t get the credit you probably couldn’t afford that expensive a vehicle in the first place. I know that I couldn’t impulse buy a 40K+ vehicle and am near the top 10% in earnings.
HOW ABOUT A REBATE ON THE E-RAY?
Wouldn’t the 5th one just be the GMC Sierra EV?
The “original” Ultium is DEAD. They are seemingly unable to make it work with the “supposed” “magical” pouches so they’re reverting to cylindrical cells which they denounced as inefficient in their “Ultium release note” from 3 years ago.
They keep, disingenuously, calling it “Ultium” to avoid loosing face one more time (remember the “glorious” Nikola “strategic partnership” of 2 1/2 years ago).
The fact that Ultium didn’t work and that they are SCRAMBLING to replace it by whatever they can explains the TWO Hummers and 900 Lyriqs produced in a whole quarter and why they “explained” 3 months ago that they wouldn’t build any additions until (they HOPE) H2. Which remains to be seeen !
@Dugan68
Cylindrical cells are sooooooo much better.
Doubt GM can switch that quickly to them though but I hope they do!!!
So let me get this right. The USA taxpayers are on the hook for a $7500 tax rebate for every EV Blazer that gets imported into the USA from Mexico? Could our leadership in DC be anymore stupid?
*any more stupid
Didn’t you hear the president of Mexico yesterday? America is at fault for everything going on in Mexico because we have morally lost our way. Sex Trade, Drug manufacture and trade, Harvesting organs, Kidnappings, Unauthorized migrations, outsourcing of manufacturing, etc. all because we lost our moral compass and Mexico and it’s citizens apparently have no reason to be held accountable for basic human rights and international law.
A $7500 tax credit doesn’t mean I get $7500 off the price if the car or as a refund. It means I still pay taxes on my $172,500 salary instead of paying taxes on my actual $180,000 salary. So if I am lucky I’ll owe Uncle Sam a few hundred dollars less next year.
This is absolutely not how it works.
It is a credit, not a write off. You will get $7,500 back (or it will reduce what you owe to the government by $7,500) provided you’ve paid enough in federal taxes over the course of the year. The vast majority of people will qualify for it.
When is everyone going to understand that if the market wants EV’s then the government should not have to subsidize it. That’s what a free market is and why should we want to follow Europe or any other country for that matter we are American and no one is better than us, I think we should all be able to agree on that!
@Rich
Funny logic.
Seems like the market easily sells ICE vehicles yet for some reason the Government HIGHLY subsidizes Oil.
Hmmmmmmmm. So weird huh?
While the US is a large market, we are one of the last nations to accept the move to EVs. The rest of the world is moving on rapidly while we’re essentially still rolling coal and laughing like idiots. GM, being a worldwide brand, understands the migration to EVs and is catering to their broader market in order to compete and hopefully lead.