General Motors (GM) has announced it will be offering a $7,500 discount on its electric vehicles (EVs). The deal has been made in response to recent U.S. Treasury guidelines that disqualified some EVs from government tax credits due to new battery sourcing requirements.
GM announced on Wednesday a $7,500 incentive on its EVs that lost eligibility for the government tax credit. GM specified that the Cadillac Lyriq and Chevrolet Blazer EVs have temporarily lost eligibility due to two minor components, but reassured that it would compensate buyers for the equivalent tax credit purchase amount.
The automaker also expects the affected models to regain eligibility in early 2024 after implementing a sourcing change.
GM assured its dealers that the new guidelines do not impact leases, encouraging them to offer ineligible inventory to leasing customers. Additionally, GM is actively working on transitioning its EV lineup to ensure models remain eligible for the full incentive under the $7,500 tax credit scheme, with expected completion in early 2024, reports the Detroit Free Press.
This move comes after the Treasury’s guidelines, effective this week, impacted several automakers, including Tesla, GM, and Ford, who this week raised prices on the F-150 Lightning by as much as $10,000. The guidelines, introduced in December, focus on avoiding components sourced from countries with government ties to China, Iran, North Korea, or Russia, with the goal of reshaping the U.S. EV supply chain and reduce dependence on foreign sources.