GM, Ford Say Electric Vehicle Price Increases have Nothing to do with Dem Spending Bill

Two of the biggest American manufacturers, General Motors (GM) and Ford, responded to claims on Tuesday that the Inflation Reduction Act was the cause of recent price increases for Electric Vehicle (EVs). The two firms told FOX Business that recent price increases affecting some models were revealed before Democrats announced the plan and were driven by supply chain concerns and inflation.

This week, several conservative media outlets claimed that GM and Ford had increased the cost of several Electric Vehicle by $6,000 to $8,500, almost matching the $7,500 tax credit included in the inflation measure. The pricing modification announcement was made well before the introduction of the Inflation Reduction Act, according to GM spokesperson Matt Ybarra, who talked to FOX Business.

The price of commodity parts, technology, and logistics have increased, and GMC informed in mid-June that bookings for new GMC HUMMER made on or after June 18th would result in a $6,250 base MSRP increase. In addition to highlighting that the Inflation Reduction Act provides a $7,500 tax credit for new Electric Vehicle sales, the Daily Wire and Washington Examiner also noted GM’s $6,250 price hike for the Hummer and Ford’s comparable pricing increases. More than ten years ago, separate law put the credit into effect. But according to Ybarra, the Hummer wouldn’t have been eligible for the Inflation Reduction Act’s incentives because of its high cost.

I should remind out that the MSRP cap established by the Inflation Reduction Act is exceeded by the price of the GMC HUMMER Electric Vehicle, making it unlikely that it will qualify for consumer purchase credits, Ybarra continued. The renewal of the Electric Vehicle tax credit and several other green energy policies, which are anticipated to cost taxpayers more than $360 billion, were approved by President Biden on Tuesday when he signed the Inflation Reduction Act into law. According to projections, the plan will bring in an extra $737 billion in federal taxable income.