GM is battling to keep the tax credit it received for its electric vehicles
As a result of the company’s plans to close a couple of manufacturing plants in the United States, General Motors is currently fighting to keep the tax credit it receives for its electric vehicles. This is an attempt to counter the worsening situation that has resulted from the current political fallout that has been triggered by the company’s plans to shut down a couple of manufacturing plants in the United States. Maintaining a tax credit of $7.5k for consumers is a critical consideration for General Motors as it transitions away from traditional internal combustion engines and toward electric vehicles. Attempts are being made by the corporation to concentrate on electric vehicles as a component of strengthening environmental standards for the future.
The closure of the manufacturing facilities, combined with the layoffs of the employees, has the potential to derail the strategy for retaining the incentive for customers. GM is adamant about the incentives portion of the agreement because it is crucial from a pricing standpoint in the very competitive market in which it operates. Taking the example of the Chevrolet Bolt, which costs approximately $30K, retaining the incentives for customers will make it far more inexpensive than its competitors’ counterparts. If this margin is maintained, General Motors will be in a better position to position its automobiles in the market.
Donald Trump, the president of the United States, as well as several other Republicans, are opposed to the proposal. They believe that handing out the tax credit is nothing more than a waste of money on the part of the taxpayers, and they are correct. He, along with all of the other Republicans who are opposed to the concept in the first place, are committed to eliminating it from the Republican Party’s grassroots. Several disclosures made by the corporation in the past month regarding its restructuring plans appeared to have enraged Trump, who appeared to be enraged. He had also stated that the administration is considering reducing all of the subsidies that are now being provided to General Motors, including those that are allocated for electric vehicle production.