April 15, 2021

GM advises the U.S to expand its consumer investment tax in the enhancement of electric vehicles

2 min read

Mark Reuss, General Motors President, said that the U.S government should enlarge its new investment tax credits to produce electric vehicles and increase supply chains. He added that the administration should enlarge its customer incentives to electric car purchases and old cars.

Reuss called upon U.S legislators to make their investments ‘in infrastructure that entails fast-charging EV stations, especially in the highway corridors and urban centers.’ GM had announced to launch its dramatic goal of vending all its new electric vehicles, small pickups with zero tailpipe emissions, and SUVs before 2035 is here. The strategy marked a huge revolution in the U.S vehicle manufacturing industries. Reuss stated that this year should be the turning point towards using electric vehicles.

Reuss suggested an EV tax credit of $7,500 be increased in all-electric vehicles. In late 2019, General Motors managed to hit a threshold of 200,000 in the sales of EVs. That offer became obsolete for all General Motors Electric vehicle customers in April of 2020.  

In 2020, GM managed to sell 2.55 million vehicles in the U.S, whereby 20,000 were only electric vehicles. In November, General Motors invested $27 billion in autonomous and electric vehicles. The investment was an increment compared to the $20 billion they had planned to invest before the coronavirus pandemic hit the world.

In 2020, the total sales of electric vehicles reduced to 296,000 from 331,000. President Joe Biden called upon the installation of 500,000 new electric vehicle charging stations. He also agreed on the idea of increasing tax credits for customers and retool plants in setting up electric vehicles and their parts. For now, the focus is on manufacturing electric vehicle batteries and not plug-in hybrid electric vehicles. Reuss stated that the bet left in their hands is to speed up their EV production.

Since climatic change is the main issue here, GM wants to be part of the solution by moving in an electric vehicle revolution. However, some automakers are more committed to manufacturing more electric vehicles, which is why there is no clarity in consumer demand. The automaker can make such an investment, but customers must be willing to purchase these vehicles.

Since 2015, Ford Motors, General Motors, Volkswagen, and others have been in the race of developing a persuasive and cheap electric vehicle as they envy their leader, Tesla. Before this year ends, Tesla plans to sell almost 500,000 electric vehicles. Tesla has always been an enthusiastic catch for its buyers, and that is why it has always been the leader in the market of EVs.


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