Ford, GM Claim EV Price Increases Unrelated to “Inflation Reduction Act”

Auto Makers Set Record Straight As Political Rumors Swirl

(RepublicanNews.org) – President Biden recently signed the Inflation Reduction Act (IRA), which allocated funding to offer credits for Americans buying electric vehicles (EVs). Oddly, and possibly coincidentally, two of the largest car manufacturers in the US, General Motors (GM) and Ford, increased prices on some of their EVs just one week before. Still, the two automotive powerhouses denied the price hikes had anything to do with the recent passage of the IRA.

GM, Ford say electric vehicle price increases have nothing to do with Dem spending bill https://t.co/vfoNyamJQR

— FOX Business (@FoxBusiness) August 16, 2022

The legislation grants income-qualified Americans buying eligible EV models a $7,500 credit toward the purchase price. Speculation over the companies increasing how much their EVs cost came as they each increased the MSRPs of the vehicles by $6,000-$8,500, nearly matching the credit.

Both companies explained to Fox Business that inflation influenced the increases, not the spending package. The car manufacturers both mentioned they had priced their vehicles before the passage of the IRA.

GM spokesperson Matt Ybarra added that the HUMMER was actually priced above the bill’s MSRP cap. The government wouldn’t offer any credits for the EV regardless of its price.

Martin Günsberg, a spokesperson for Ford, told Fox Business the company also raised the MSRP for its combustion engine F-150, not just the F-150 Lightning. That suggests the IRA had nothing to do with the company’s decision.