Ford said it is discontinuing a program that would have allowed dealers to extend a $7,500 tax credit on electric vehicle (EV) leases, following the expiration of the federal subsidy on September 30. The automaker said it will continue to offer competitive lease options despite the decision.
“Ford will not claim the EV tax credit but will maintain the competitive lease payments we have in the market today,” a company spokesperson said. The move comes a day after General Motors (GM.N) also canceled a similar initiative. Both companies had developed in-house financing strategies through which their lending arms would buy EVs from dealers, apply for the federal credit, and roll that amount into lease terms for customers.
See also: Ford CEO Jim Farley Teases $30,000 EV Pickup That’s ‘Really Not a Pickup’
While several other automakers, including Hyundai and Stellantis, have offered direct cash incentives to offset the loss of the federal credit, Ford and General Motors had opted for this alternative approach. For customers purchasing rather than leasing, Ford Credit will continue to offer 0% financing for up to 72 months and other promotional incentives, the spokesperson added.
General Motors reportedly dropped its program after concerns were raised by Republican Senator Bernie Moreno of Ohio, a former car dealer active in automotive policy, according to a person familiar with the matter. The reason for Ford’s decision remains unclear.
See also: Ford Electrified Vehicles Reach 85,789 Units in Q3, Accounting for 15.7% of Total Sales
Industry leaders remain divided over the impact of the tax credit’s expiration. Ford CEO Jim Farley has warned that EV sales could decline without continued federal incentives, while other executives, including the head of Hyundai Motor North America, have said the electric vehicle market remains resilient despite policy changes.
Source: Reuters
Ford’s Non-Luxury EV Market Share Falls as Rivals Gain Ground
