GM Doesn’t Plan to Lower Price on Chevrolet Bolt after Tax Credit Phaseout

Tesla became the first automaker to sell 200,000 plug-in vehicles in the U.S., triggering a phaseout of federal tax credits for the brand. To compensate consumers for the lower credits, Tesla reduced sticker prices on its vehicles by $2,000. GM, the second automaker to reach the sales cap, will begin its phaseout Monday, but it doesn’t plan to lower the price of the Chevrolet Bolt.

Speaking with Reuters, GM spokesman Jim Cain said, “It is easier to react to the market by working with dealers and your marketing team than it is to change sticker prices.” The 2019 Chevrolet Bolt starts at $37,495 including a destination charge, but not including any available tax credits or incentives.

GM’s tax credits will be phased out gradually. Starting April 1, the credit falls from $7,500 to $3,750. In October, the credit drops again to $1,875 before going away completely in April 2020.

If you’re in the market for a new Bolt, there’s some good news. GM says it will roll out new incentives next week as the current monthly incentives expire. Cain didn’t specify what the new offer would be, but the automaker is currently offering incentives of 14 percent of the suggested retail price. GM CEO Mary Barra recently announced the automaker will bolster its EV marketing.

Last week, GM announced it will invest $300 million in a suburban Detroit assembly plant to build a new Chevrolet electric vehicle. The vehicle will sit on the same platform as the Bolt.

Although Tesla reduced prices after its tax credit phaseout began, it later said it would increase prices by about 3 percent on average worldwide as it tries to keep more retail stores open. These price increases apply to more expensive variants of the Model 3, as well as Model S and X.

Tesla reached the 200,000-vehicle mark last July. Its $3,750 tax credit will stay in effect until July 1, when it will drop again to $1,875. Its tax credits expire at the end of the year.

Source: Reuters

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