GM Ends EV Lease Program Amid Political Intervention

General Motors has decided to discontinue a program that allowed its dealers to continue offering a $7,500 tax credit on electric-vehicle leases after the federal subsidy expired on September 30. The initiative, launched late last month, involved GM's finance arm purchasing EVs from dealerships, applying for the federal tax credit, and then passing the benefit to customers through lease terms until the end of the year. The move aimed to mitigate the financial impact on dealers who would otherwise be left with unsellable EV stock following the end of the subsidy.

However, concerns raised by Republican Senator Bernie Moreno of Ohio, a former car dealer active in auto policy, led GMto cancel the program. Moreno expressed satisfaction with GM's decision, emphasising that EV subsidies ended on September 30 and that automakers should adhere to that timeline. He highlighted efforts to protect the domestic auto industry.

GM planned to claim the credit on approximately 20,000 EVs, financing down payments through GM Financial based on a percentage of each vehicle’s price. For instance, GM would have paid about $6,300 for two Chevrolet Blazer EVs. The company announced it would fund lease incentives through October. The program was quickly assembled days before the deadline, coinciding with a similar initiative by Ford, although Ford’s plans remain unclear.

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Auto industry experts warn that EV sales are likely to drop significantly after the subsidy’s end, which previously helped boost record sales in September. The cancellation reflects ongoing debates over government incentives and their influence on the EV market.

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