Kristina Roberts
Ford Motor Company recently made a surprising change in its electric vehicle (EV) strategy. The company announced that it would not continue a plan that allowed its dealers to offer a $7,500 tax credit on electric vehicle leases. This decision came right after the federal subsidy for EVs ended on September 30. The company explained, “Ford will not claim the EV tax credit but will maintain the competitive lease payments we have in the market today.”
This means Ford customers who lease electric vehicles will not get the government tax credit anymore, but the company promises that the monthly lease payments will still be reasonable and attractive. This move mirrors a similar one made by General Motors (GM), another leading carmaker in the United States. GM announced a day earlier that it would also end its plan to use the same tax credit system.
To understand why this is important, let’s look at what this credit means. The U.S. government gives a $7,500 tax credit to encourage people to buy or lease electric cars. This helps make EVs more affordable and promotes cleaner energy. When this credit expired at the end of September, carmakers had two choices: either absorb the cost themselves or let customers pay more.
Some car companies, like Hyundai and Stellantis, decided to offer cash discounts to make up for the loss of the tax credit. However, Ford and GM had another idea. They planned to use their in-house financing units—Ford Credit and GM Financial—to buy the electric cars that were sitting in dealerships. By doing this, the companies could technically apply for the $7,500 federal credit themselves and then pass that savings to customers through lower lease payments.
It seemed like a smart move at first. Customers could still enjoy lower costs, and companies could keep EV demand steady. But just days later, both automakers decided to stop the program altogether. For Ford, the reasons behind this sudden reversal were not fully explained. GM’s decision, however, reportedly came after concerns were raised by Ohio’s Republican Senator Bernie Moreno, who is also a former car dealer and active in auto industry policy. According to a person familiar with the situation, Moreno’s comments might have influenced GM to cancel the program.
Even though Ford didn’t say why it followed GM’s lead, many industry experts believe both companies wanted to avoid political and legal complications. The federal government’s rules around EV tax credits are quite complex, and automakers must be careful to follow them strictly.
Ford’s new focus will now be on keeping lease prices competitive without depending on the tax credit. The company said that Ford Credit, its financing division, will continue to offer other benefits to customers. These include 0 percent financing for up to 72 months and several purchase incentives for those who prefer buying instead of leasing their vehicles. This means Ford is still trying to make its electric vehicles affordable, just in a different way.
Both Ford and GM had reportedly developed their earlier plans after discussions with officials from the Internal Revenue Service (IRS), which oversees tax matters in the U.S. The companies were trying to find legal ways to continue offering financial relief to EV customers even after the government subsidy ended. However, the quick cancellation of both programs shows that automakers are being cautious about how they handle federal benefits and compliance issues.
This decision has also sparked a larger debate about the future of electric vehicle sales in the United States. Many auto executives believe that ending the federal subsidy could make it harder for ordinary buyers to afford electric cars, at least for now. Ford’s CEO, Jim Farley, has previously warned that without the credit, EV sales could “drop significantly.” His concern is that EVs still cost more to produce than traditional gas-powered cars, and many customers depend on financial help to make the switch to electric.
On the other hand, not everyone agrees with this viewpoint. The CEO of Hyundai Motor North America, for instance, has said that the EV market is strong enough to survive even without the government’s help. According to him, more people are becoming aware of the long-term benefits of owning electric vehicles, such as lower fuel costs and reduced maintenance expenses.
The changing policies at Ford and GM also show how quickly the EV industry is evolving. What seemed like a stable system of government incentives just a few months ago is now uncertain. This means automakers must constantly adjust their strategies to keep customers interested while staying compliant with federal laws.
Another reason why these decisions matter is that electric vehicles are a big part of the world’s plan to reduce pollution and fight climate change. The U.S. government has been encouraging automakers to produce more EVs and reduce reliance on fossil fuels. But without strong financial support, it may take longer for electric vehicles to become mainstream.
For Ford, this moment is also about maintaining its brand reputation. The company has invested heavily in its electric lineup, including models like the Mustang Mach-E and the F-150 Lightning. Both vehicles have gained popularity, but their sales still depend on how affordable they are for everyday buyers. Ford’s recent statement shows that it is trying to balance business competition, customer satisfaction, and government policies all at once.
Even though the $7,500 credit is gone, Ford hopes to keep EV demand steady through flexible financing and attractive lease options. The company also continues to work on making its electric vehicles more efficient and cost-effective to produce. By reducing production costs, Ford could eventually offer lower prices without depending on tax credits.
This situation also highlights the competition between major carmakers in the U.S. Both Ford and GM are fighting to win over electric car buyers while keeping up with global rivals like Tesla and Hyundai. The decision to stop claiming EV tax credits might be temporary, but it shows how complex and unpredictable the electric car market has become.
As the world continues moving toward electric mobility, automakers like Ford are learning to adapt quickly. While government policies will keep changing, companies that focus on innovation, affordability, and customer trust are likely to stay ahead. Ford’s move may seem like a setback, but it could also be a step toward building a more independent and stable EV business model.
In the end, Ford’s decision is not just about a tax credit—it’s about shaping the future of electric driving. The road ahead may be challenging, but the company’s determination to keep its vehicles affordable and competitive shows that it’s not giving up on the electric dream anytime soon.
