General Motors has passed the 200,000 electric and hybrid vehicles sold milestone in the last quarter of 2018. This means that the subsidies for GM BEVs and PHEVs will be lowered starting in the second quarter of 2019.
Starting in April, the subsidies for GM EVs will be reduced to 3,750 dollars (around 3,297 euros). In October, this will fall to 1,875 dollars (approx. 1,658 euros) for a period of six months. As of April 2020, government subsidies will cease altogether unless current US legislation changes. The figure of 200,000 vehicles covers GM’s cumulative EV sales since 2010.
The tax credit is intended to cover the higher acquisition costs of an electric vehicle compared to a vehicle with a combustion engine of a similar size. In 2009, the Congress set the threshold of 200,000 e-vehicles per manufacturer. Last November, however, an alliance of well-known US American e-mobility actors advocated a reform of the tax credit up to 7,500 dollars for electric cars and plug-in hybrids. Specifically, the EV Drive Coalition called for the current tax credit upper limit of 200,000 electric vehicles per manufacturer to be abolished. In view of the presidency of the Trump administration, however, we only see a small chance of implementation being given to this undertaking.