GM and Ford say increases in electric car prices have nothing to do with Germany’s spending bill
First on the fox: General Motors and Ford, two of the largest US automakers, on Tuesday retracted reports that the recent electric vehicle (EV) price hike was linked to the inflation-cutting act.
Both companies told FOX Business that recent price increases that affected some electric car models were affected by inflation and supply chain issues and were announced before Democrats unveiled the legislation. Several conservative outlets reported this week that General Motors and Ford raised the prices of some electric models by between $6,000 and $8,500, roughly equivalent to the $7,500 tax credit offered under the Inflation Act.
“The pricing update has absolutely nothing to do with the Inflation Cuts Act, and the announcement was made long before that legislation was introduced,” GM spokesman Matt Ybarra told FOX Business. In mid-June, GMC announced that reservations for new GMC HUMMER EVs placed on/after June 18 would see a $6,250 increase to the base MSRP due to an increase in parts prices, technology and logistics.
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Both the Daily Wire and the Washington Examiner are reporting GM’s $6,250 price hike for a Hummer and Ford, noting that the Inflation Control Act is extending a $7,500 tax credit for purchases of new electric vehicles. The credit was actually implemented through separate legislation more than a decade ago.
However, Ybarra said that the Hummer EV will not be eligible for the credits under the Inflation Control Act due to its high price.
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“I should point out that the pricing of the GMC HUMMER EV is above the MSRP cap set by the Inflation Reduction Act, and therefore is not expected to qualify for consumer purchase credits,” Ybarra added.
On August 9, Ford announced that it would increase the price of its F-150 Lightning Pro electric vehicle and the traditional gas-powered F-150.
“We recently revised the MSRP for both the EV and ICE F-150 models,” Martin Gunsberg, a Ford spokesperson, told FOX Business in an email. “We announced pricing for the F-150 Lightning in May 2021 – 15 months ago – and since then, inflation and commodity costs have continued to increase, leading to this latest adjustment for the next model year.”
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President Biden signed the Inflation Reduction Act into law Tuesday, agreeing to extend the electric vehicle tax credit and a number of other green energy provisions that are expected to cost taxpayers more than $360 billion. The bill is expected to increase federal tax revenue by about $737 billion.
Biden said before signing the law: “With this law, the American people have won, and special interests have lost.”