Fed rebate on Euro sales?

[Redundant]

Just curious. Do the deliveries of Mach-e to Europe count in the reduction of vehicles Ford has left with fed rebates? Doesn’t seem like they should.

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[macchiaz-o]

No: https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

 

[Redundant]

No: https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

Wow great find. So some of the worry people have about the range for next year can be alleviated by that. What is it 30 or 40% of first 50k go to Europe I think.

 

[s7davis]

Tax rebates only count on vehicles sold in the USA. So they might wait until late December to start delivering Mach e in the USA. Cause remember it counts for all hybrid cars as well so last I checked they were only like 90k short of 200k limit so they might hold out until January to really start pushing the Mach e to USA customers

Ford Motor Company	116,112	83,888	3,606	601
Toyota Motor Corporation	104,375	95,625	8,605

This show as of June 2019 ford had only 84k more sales until phase out starts of the tax credit. So I think they will hold out on the USA sales of Mach e until lat December or beginning of january

 

[macchiaz-o]

@s7davis, what business reasons would motivate Ford to artificially postpone sales of MME in favor of other their plug-in vehicles?

If I'm doing the math correctly, Escape PHEV's 14.4 kWh pack will result in a $6,837 federal tax credit for qualifying buyers. Fusion Energi's 7.6 kWh pack earns a $4,001 federal tax credit. All else being equal, it seems Ford should be more motivated to push the MME than the Escape or Fusion PHEVs, due to its larger credit. (I belive the tax credit benefit the manufacturer more-so than it does the buyer.)

Edit: IRS data indicates Ford increased Fusion Energi's battery size for 2019, 2020 (not shown on Ford's own product specs?!), so the credit on that one is now $4,609.

 

[s7davis]

The reason being is as soon as they hit the 200k USA sells the tax credit starts its phase out on the next quarter.

Now we all probably know they will not sell that many hybrids between now and 1st quarter so all is well. However, I think once the sells of the Mach E begin in December or Janurary it will take the remainder of that fiscal year of full 7500 tax credit.

Now for business they will not benefit much at all however, the customer would which is what needs to be a factor in people buying the Mustang Mach E cause I am sure a lot of customers might be persueing Ford as their Electric Vehicle of choice because of the Tax Credit so delaying the MAch E deliveries to only a few in the USA will help extend the tax credit benefits one would get especially as they are getting close to having 200k vehicles sold in the USA that will start the phase out process.

Also I think as soon as the Mach E sales begin we will see a slight decrease in the hybrid models and most tax credit sales will be the Mustang Mach E. So once they get close to the 200k I will think they would postpone deliveries a little bit to extend the tax credit benefits to its consumers.

 

[timbop]

I seriously doubt Ford will hold back sales, nor do I think doing so makes much of a difference. Assuming they do sell another 25000 hybrids this year, whether they start selling the e here in December or January 2021 will not significantly change what day the 200000th ev gets sold, and it is not until the end of the quarter after the quarter in which the 200000th ev Is sold that the incentives start going down. They are only selling 50000 mach e total in the first model year, with a significant portion going to Europe and not counting toward the 200k. The rebate should still be around for the 2022s.

 

[Ponypower50]

Well said!

 

[Art]

Just curious. Do the deliveries of Mach-e to Europe count in the reduction of vehicles Ford has left with fed rebates? Doesn’t seem like they should.

In 2023 the max of 200,000 was deleted. That's why Tesla owners qualify for a $7,500 credit.
A credit is different than a rebate. Not all people qualify on a credit but if it were a rebate, all would qualify.

 

[generaltso]

In 2023 the max of 200,000 was deleted. That's why Tesla owners qualify for a $7,500 credit.
A credit is different than a rebate. Not all people qualify on a credit but if it were a rebate, all would qualify.

This one was more than 3 years old. Why are you resurrecting old threads to comment on tax credit rules that don't apply now but did at the time?

And by the way, you should probably change your password since it looks like you entered it in your location field. Kudos for the complexity though.

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