U.S. Treasury to release EV battery sourcing rules next week

[voxel]

So because of the 45W loophole... numerous foreign made EVs will be cheaper than American made ones.

A GV60 Performance ($69K) with the $7500 cap reduction offered by Genesis on EV leases... will be the same price as a Mach-E Premium AWD ER ($63K) for those who do no qualify for the IRA tax credit due to... reasons.

Ford should offer $7500 incentive on leases if the Treasury imposes strong guidelines that make their batteries ineligible for the IRA EV tax credit.

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[Guss-E 2021]

Increased production from most auto makers. Plenty of new models coming to market this year. Price pressure from Tesla. Yah, it will be interesting to see how Blue Oval responds on pricing this year. Have LFP models come off the line yet?

 

[65MustangBoy]

If I were a betting man, they will postpone the battery requirements until 1/1/2024.

This was my take from the beginning. U.S. tax laws are complicated enough than to try to change something during the tax year based on a clarification.

 

[phil]

Ford should offer $7500 incentive on leases if the Treasury imposes strong guidelines that make their batteries ineligible for the IRA EV tax credit.

And Ford should also offer that if Treasury doesn't impose such guidelines.

 

[ArthurDOB]

Increased production from most auto makers. Plenty of new models coming to market this year. Price pressure from Tesla. Yah, it will be interesting to see how Blue Oval responds on pricing this year. Have LFP models come off the line yet?

Unless there is an announcement, I think we’ll have to wait until someone says they have an LFP model. I’m still wondering how you would even know if it was an LFP battery or not. ?

 

[4sallypat]

So because of the 45W loophole... numerous foreign made EVs will be cheaper than American made ones.

A GV60 Performance ($69K) with the $7500 cap reduction offered by Genesis on EV leases... will be the same price as a Mach-E Premium AWD ER ($63K) for those who do no qualify for the IRA tax credit due to... reasons.

Ford should offer $7500 incentive on leases if the Treasury imposes strong guidelines that make their batteries ineligible for the IRA EV tax credit.

How about the Hyundai Ioniq 5 - base SE at $44K ?

When leased, the net cap cost is reduced by $7500 to $37K.

Buy that out after it's leased from HMF and you have a great deal on your hands...

 

[dbsb3233]

So because of the 45W loophole... numerous foreign made EVs will be cheaper than American made ones.

A GV60 Performance ($69K) with the $7500 cap reduction offered by Genesis on EV leases... will be the same price as a Mach-E Premium AWD ER ($63K) for those who do no qualify for the IRA tax credit due to... reasons.

Ford should offer $7500 incentive on leases if the Treasury imposes strong guidelines that make their batteries ineligible for the IRA EV tax credit.

But then Ford loses $7500 more on each vehicle.

 

[phil]

But then Ford loses $7500 more on each vehicle.

No, it would apply only to leased vehicles. And on leased EVs, Ford gets a $7,500 credit from the government.

 

[voxel]

How about the Hyundai Ioniq 5 - base SE at $44K ?

When leased, the net cap cost is reduced by $7500 to $37K.

Buy that out after it's leased from HMF and you have a great deal on your hands...

If you are happy with a Select... you might be happy with an SE... possibly not. It's a pretty budgety trim with cloth seats and no front sensor.

 

[dbsb3233]

No, it would apply only to leased vehicles. And on leased EVs, Ford gets a $7,500 credit from the government.

Ah, ok. Yeah, I would think that would be reflected in the monthly lease rates then.

 

[JohnFoxeSheets]

Buy that out after it's leased from HMF and you have a great deal on your hands...

Well, except that you'd be stuck with a serious ugly car... But hey, at least it's isn't a Lucid! ?

 

[Socalsp3]

Well, except that you'd be stuck with a serious ugly car... But hey, at least it's isn't a Lucid! ?

https://www.hotcars.com/world-car-design-2022-hyundai-ioniq-5/

 

[JohnFoxeSheets]

https://www.hotcars.com/world-car-design-2022-hyundai-ioniq-5/

Each to his/her own.

 

[4sallypat]

And Ford should also offer that if Treasury doesn't impose such guidelines.

Yes, good point!

BMW, Audi, Mercedes, Hyundai, VW, Polestar, Subaru and Mitsubishi are all passing the $7500 credit back to the buyer.

When other manufacturers are passing along the $7500 as a lease cash bonus, Ford should follow suit IMO.

With the 1/2 tax credit looming on my incoming MME for a purchase; I'd consider a lease to capture the $7500 and reduce the net cap cost of the vehicle.

 

[generaltso]

No, it would apply only to leased vehicles. And on leased EVs, Ford gets a $7,500 credit from the government.

If Ford Credit has enough tax liability. Are they profitable?

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