By Nora Eckert
DETROIT (Reuters) -Ford Motor is walking back a program that would have allowed dealers to offer a $7,500 tax credit on EV leases after the federal subsidy expired September 30, the company said on Thursday.
“Ford will not claim the EV tax credit but will maintain the competitive lease payments we have in the market today,” a spokesperson said.
The decision follows a similar move from General Motors on Wednesday. While automakers including Hyundai and Stellantis have offered cash off incentives to bridge the gap for buyers, Ford and GM took a different approach.
The in-house lending arms at these two automakers planned to initiate the purchase of EVs in dealers’ inventory, and the companies would apply for the $7,500 credit on those cars and then roll that money into EV lease terms for customers.
For customers who want to purchase an electric vehicle, Ford Credit continues to offer 0 percent financing for 72 months and other incentives, a spokesperson said.
GM opted to kill the program after concerns were raised about it by Republican Senator Bernie Moreno of Ohio, a former car dealer who is active in auto policy, a person briefed on the matter told Reuters. It is unclear why Ford canceled its program.
Ford and GM developed their strategies after discussions with officials at the Internal Revenue Service, Reuters previously reported.
Some auto executives, including Ford CEO Jim Farley, have warned that EV sales will drop significantly in the absence of the credit. Other automotive leaders, such as the CEO of Hyundai Motor North America, have affirmed that the electric vehicle market is more resilient than that.
(Reporting by Nora Eckert; Editing by Chizu Nomiyama )
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