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Top Automakers Claim Electric Vehicle Price Hike has Nothing to do with Biden’s New Spending Bill

Shortly after the new Inflation Reduction Act spending bill recently signed by President Biden, two of the top automakers in the country, General Motors (GM) and Ford received backlash regarding their increase in the price of electric vehicles. The pushback claims that they only increased these prices because of the new spending bill that was signed by President Biden on Tuesday, the Inflation Reduction Act.  This is the case because the act housed a $7,500 tax credit for qualifying EV buyers.

GM and Ford’s Response

The two companies released statements earlier in the week and claimed that the reason for this price increase on their vehicles was because of inflation and supply chain issues that were announced before the bill was even put into place. However, multiple news outlets were quick to point out that the prices were being raised anywhere from $6,000 to $8,500, which approximately fits the $7,500 tax credit that was introduced with the new bill. “The pricing update is completely unrelated to the Inflation Reduction Act and the announcement was made well before that legislation was introduced,” GM spokesperson Matt Ybarra told FOX Business. “In mid-June, GMC announced that new GMC HUMMER EV reservations placed on/after June 18th would see an increase of $6,250 to the base MSRP due to the increase in the price of commodity parts, technology, and logistics.”

More specifically, the Daily Wire and Washington Examiner pointed out that the price increase for GM’s Hummer was $6,250 along with Ford’s similar price increases, which aligns with the Inflation Reduction Act’s extension of $7,500 EV tax credit for new EV cars.

Wrap Up

It is unclear whether the bill President Biden signed on Tuesday had a direct effect on these Automakers raising their prices, or if it was just what they claimed it to be, which was inflation and supply chain issues.  What do you think?

 
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