Cadillac Lyriq eligible for US tax credit in 2024
The US changed the guidelines defining the sourcing requirements for battery components and materials that must be met in order for electric vehicles to qualify for the subsidy. The latter went into effect in January. The main idea behind the new sourcing regulation is to support domestic battery material and cell production in the US. It stipulates that to qualify for the full tax credit, from 2024 onwards, electric vehicles will no longer be allowed to use battery components manufactured or processed by a company from a country considered a “Foreign Entity of Concern” (FEOC).
But that is all in the past. “I’m pleased to report that today all of the Cadillac Lyriqs that we’re producing are now compliant,” says GM’s Chief Financial Officer Paul Jacobson. “It’s an example of how we can be nimble within our supply chain and within our allocations to make sure that we’re maximizing the benefits.”
The Chevy Blazer, as well as models from other carmakers, were also affected. At the time, GM said it would pull “head sourcing plans for qualifying components in early 2024.” The Cadillac Lyriq is built in the US state of Tennessee and the carmaker has been paying the 7,500 dollar incentive out of pocket these past weeks.
Ford was another carmaker affected by the change in guidelines. The Mustang Mach-E no longer qualifies, prompting the carmaker to slash prices in the US and Canada. At the end of January, Volkswagen confirmed to customers that the MY24 ID.4 would qualify for the tax credit, as it uses battery cells from SK On from the US state of Georgia.
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