Ford and GM have abandoned plans to use the EV tax credit loophole.
The move comes after a Senator said they were “bilking” taxpayers.
The companies are now offering their own incentives to prop up demand.
In an era where many companies suck up to the Trump Administration, Ford and GM dared to be different. They rather blatantly exploited a loophole to extend the clean vehicle tax credit beyond its September 30 expiration date.
There’s a lot of back story, but the IRS released guidance earlier this year saying the credit could be extended to vehicles received after September 30 as long as there was a “written binding contract” as well as a nominal down payment.
Playing the System
To take advantage of this, Ford and GM used their financing arms to place down payments on EVs and stop the clock. This means they could then lease those vehicles to consumers at discounted rates.
Needless to say, this raised a lot of eyebrows and Ohio Senator Bernie Moreno wasn’t happy. In a letter to Treasury Secretary Scott Bessent, he said the IRS guidance was “being taken advantage of by certain car companies who wish to continue bilking the U.S. taxpayer.”
He added, they’re “gaming this guidance by instructing their captive financial entities to enter into written binding agreements with dealers for electric vehicles, paying a nominal down payment, to secure the credits on vehicles that may not be leased to the end user for months.”
Moreno also mentioned the “Green New Scam,” so that might tell you about his feelings towards EVs. Regardless, GM and Ford have apparently decided the bad optics and pressure weren’t worth it.
Backing Down
GM was the first to fold and they were quickly followed by Ford. As a spokesperson told Reuters, “Ford will not claim the EV tax credit, but will maintain the competitive lease payments we have in the market today.”
Speaking of which, Ford is promoting a 2025 Mustang Mach-E Select lease for $253 per month. That’s for 36 months with $3,493 due at signing and an allowance of 10,500 miles (16,898 km) annually. Of course, there are plenty of caveats.
The updated Bolt features a 65 kWh LFP battery with 255-mile range.
Chevy added a NACS port and boosted DC charging speeds to 150 kW.
Power comes from the same 210 hp motor used in the Equinox EV.
In a market where federal tax credits are no longer cushioning electric car prices, the upcoming 2027 Chevrolet Bolt arrives as GM’s latest attempt to keep affordable EVs within reach. Shown off quietly to existing owners, the 2027 model rolls in at $29,990 including destination fees, offering a handful of upgrades over its predecessor rather than any sweeping reinvention.
This represents a modest price increase over the 2023 model that was discontinued two years ago, and although it remains the most affordable EV from an American brand, the new Bolt still sits several thousand dollars above the entry-level 2026 Nissan Leaf, which is due to arrive next spring starting at $25,360.
Production and Core Specs
At a recent event, Chevrolet confirmed that production of the 2027 Bolt will begin early next year at its Kansas City facility. As revealed in recent images, the electric hatch will include a standard NACS charging port, aligning it with the new industry standard.
It has also been confirmed to come standard with a new 65 kWh lithium-ion phosphate battery pack that will provide it with 255 miles (410 km) of driving range, according to GM’s own estimates. That represents a modest improvement over the outgoing model’s 247-mile figure.
Photos Chevrolet
Beyond boasting a better range than the outgoing Bolt, the new one’s DC charging speeds are no longer capped at 50 kW. Instead, it can charge at up to 150 kW, meaning the battery can be topped up from 10-80 percent in 26 minutes. That’s a big improvement over the old model and matches the charging speeds of the new Leaf.
Chevy has also equipped the Bolt with a new motor, borrowing the unit found in the Equinox EV and producing 210 hp. Performance times have yet to be announced, not that Bolt owners are the kinds of buyers that’ll be participating in traffic light races.
Pricing and Trims
The 2027 Bolt will debut first as a Launch Edition, starting at $29,990 with destination and delivery included. A slightly more affordable LT trim will follow next year priced from $28,995.
From a visual standpoint, the alterations made to the Bolt are less significant than many had expected. Indeed, it mostly looks like a facelifted version of the outgoing model. Key changes made include the fitment of new headlights, different taillights, and a unique tailgate with a redesigned bumper.
The interior is also very similar. However, Chevy has added a larger digital instrument cluster and moved away from gear selector buttons on the transmission tunnel, instead opting for an electronic column shifter.
A particularly welcome addition is a set of large physical dials for temperature and fan speed, providing straightforward control without touchscreen fuss. Two new storage compartments now sit within the dashboard, directly in front of the passenger, adding extra practicality to the cabin.
The new Bolt now includes a NACS port for charging at Supercharger stations.
Chevy updated the EV with redesigned front and rear fascias.
GM’s BEV2 platform with a 400V architecture underpins the new EV.
The new 2027 Bolt is set to make its public debut before the end of the year, but the wait has effectively been cut short. A completely undisguised prototype was spotted and photographed by Instagram user chargepozitive, giving us an unhindered view of the updated design. The images confirm what earlier spy shots hinted at, that this is more of a facelift than a full redesign.
Captured in a sharp shade of metallic blue, the Bolt EUV was seen charging at a Tesla Supercharger, where its new NACS port was on full display. Positioned on the driver-side front fender, the port mirrors the layout of the outgoing model while aligning the car with the industry’s growing charging standard.
Evolution Over Revolution
In terms of design, GM has worked to overhaul the front fascia of the Bolt by adding new LED daytime running lights that are now connected to the main headlamps positioned further down on the bumper. It has also added a different black grille with a honeycomb mesh pattern, which we think gives the updated Bolt a cleaner and slightly more premium look.
Viewed from the side, there’s very little to differentiate the new model from the one it replaces. That means it has the same door skins and the same thick C-pillars. At the rear, the most noticeable changes are the new taillights and the refined bumper, which features more painted elements.
Limited technical details about the new model are known at this stage, but we do know it will be underpinned by the BEV2 platform with a 400-volt electrical architecture. The old model had been criticized for only supporting DC charging speeds of up to 55 kW, so we expect some speed improvements to be made to this new model.
Powering the latest Chevy EV will be a lithium-iron phosphate battery pack supplied by CATL, a move that should help balance cost and durability. The last Bolt managed an EPA-rated 247 miles (398 km) of range, but expectations for this update are higher. To stand as a credible rival in today’s market, Chevrolet will likely need to push that figure closer to the 300-mile (482 km) mark.
Ford and GM have found a loophole to extend the EV tax credit.
They made down payments on EVs, effectively stopping the clock.
This means customers will get the incentive while supplies last.
The clean vehicle tax credit expires today, but Ford and General Motors have found a loophole that will enable them to offer the incentive for a little longer. This is a brilliant move as it will save shoppers thousands of dollars, while also enabling the automakers to offer discounts that rivals can’t.
As we reported in August, the IRS issued new guidance related to the elimination of the tax credit. It effectively said the credit could be extended to vehicles received after September 30 as long as there was a “written binding contract” as well as a nominal payment made.
A Timely Loophole
The automakers appear to have taken advantage of this as the Detroit Free Press reports Ford and GM decided to use their financing companies to place down payments on EVs. This secured the tax credit and effectively stopped the clock.
Thanks to the clever accounting, the companies will continue offering vehicles with the incentive. The specifics are a little hazy, but the publication said “When a customer leases an EV through the program, their payment reflects application of the tax credit and the finance company gets reimbursed.”
What It Means for Buyers
Of course, the specifics don’t really matter to shoppers as long as they get their $7,500 credit. A GM spokesperson alluded to this as they told the paper, “It’s business as usual for the customer” and “They can walk in on Oct. 1 or Oct. 31 and lease an EV and get the benefit of the credit if the dealer is participating in the program and still has inventory.”
GM Design shared renderings and photos of five new concepts on Instagram.
The group includes road, racing, utility, adventure, and flying electric vehicles.
Scale models are on display at EPCOT in Florida’s Walt Disney World Resort.
A glimpse into the future of mobility often starts not with what’s on the road, but with what designers dream up behind (usually) locked studio doors. That’s exactly what GM has done, pulling back the curtain on five totally out there concepts that span everything from rugged off-road EVs to airborne transport. Shared through GM Design’s Instagram account, the images reveal a rare look into the company’s creative process.
The machines are not meant for production. Instead, they exist to explore fresh ideas across “road, racing, utility, adventure, and VTOL vehicles.” Without the need for real life prototypes, the design teams leaned on digital renderings and detailed scale models to bring their vision to life.
A Sports Car Without a Windshield
Starting with the P1, it is an open-air sports car with a tub-like body and exposed wheels, calling to mind modern rival of the 1996 Ford Indigo concept. The vehicle has no windshield, featuring a central driving position and two bench seats ahead of a small cargo area. The minimalist design includes slim LEDs on both ends and a pronounced chin.
Moving on to the P2, this low-slung EV is focused on aerodynamic efficiency. The front glass is heavily inclined, leading to a smooth roofline that cuts out on the slightly recessed tail. Despite its length, it only has two upward-opening doors.Decals along the side hint at onboard technology, pointing to an “AI. Pilot” system said to manage driving duties.
Next up is the P3, also known as the Utility Concept. It takes things in a more practical direction. Think of it as a distant descendant of today’s compact hatchbacks and crossovers. Its wheels, capped with aerodynamic covers, sit right at the edges of the monovolume body. The glasshouse is finished in body color, intersected by metallic blades that give it a slightly sci-fi presence.
Off-road Experiment
The P4 changes tone once again, diving headfirst into rugged territory. This electric off-roader uses a capsule-shaped body perched high on oversized tires wrapped in thick tread. Overhangs are practically nonexistent, ground clearance is generous, and details include a heavily raked windshield, full-width LED lighting, roof rails shaped to carry surfboards, and body-colored side glass.
Last but not least, the P5 is a flying vehicle designed for vertical take-offs and landings (VTOL). It looks like an oversized drone with two sets of fans and a flat floor, while the main body adopts similar styling cues to the other concepts.
Overall, the latest group of GM concepts would look more fitting to a video game or a sci-fi movie than the real world. Still, this is the beauty of being able to design something without restrictions.
See Them At Disney
Scale models of all five concepts are displayed at the EPCOT theme park in Florida’s Walt Disney World Resort. General Motors is the official vehicle sponsor of the venue and has recently launched an updated Test Track ride for visitors.
Buick has launched the Electra L7 in China under its new Electra sub-brand.
It rides on the new Xiao Yao architecture, offering BEV and EREV options.
The EREV version has 338 hp of power and 870 miles of combined range.
Update: GM has unveiled the production version of the China-exclusive Buick Electra L7 sedan, releasing full powertrain specs. This story has been updated with new details and images.
While Buick’s presence in the US is now all about crossovers and SUVs, the brand is taking a different approach in China, where the traditional sedan still has a place. The all-new Electra L7 joins Buick’s portfolio in the world’s largest automotive market, bringing modern styling, a high-tech interior, and electrified powertrains.
The model retains much of the design language introduced in the concept, though a few features have been streamlined for production. The lighting signature at both ends has been reworked, with more practical LED graphics. Furthermore, the sleek, flush door handles and traditional side mirrors replace some of the show car’s more experimental elements, bringing it closer to real-world usability.
Buick highlights its wing-shaped “Galaxy” headlights and turbine-style alloy wheels as standout features. The L7 wears a fastback silhouette focused on aerodynamics and measuring 5,032 mm (198.1 in) long, 1,952 mm (76.9 in) wide, and 1,500 mm (59.1 in) tall. A 3,000 mm (118.1 in) wheelbase gives it a spacious footprint, putting it slightly longer than the Tesla Model S and Mercedes-Benz EQE, though shorter than the BMW i5.
A Minimalist and Techy Interior
Inside, the L7 offers a minimalist but premium-looking cabin anchored by a floating island-style dashboard. It features two screens: a driver display and a tablet-style infotainment unit on the center console. Physical controls are limited to a few buttons on the lower console and steering wheel, which still retains multifunction stalks, including for the transmission control.
Luxury touches include Nappa leather upholstery and four-zone “suspension” seats, with the front passenger seat offering a dual 120-degree zero-gravity function. A 27-speaker Buick Sound system integrates headrest speakers and active noise cancellation.
The Electra L7 also gets a massive 50-inch augmented reality head-up display, and an array of AI-driven features. All of this runs on Qualcomm’s 8775 chip, which supports high-end infotainment and connectivity. Driver assistance tech will come from Chinese tech company Momenta, which has developed a suite of sophisticated ADAS capabilities using LiDAR.
Platform With Options
The sedan is just one of six new energy models Buick plans to launch in the next year, likely alongside production versions of Electra’s SUV and minivan concepts. All of them will be built on Buick’s Xiao Yao architecture, a flexible platform designed specifically for China. These underpinnings are compatible with fully electric, plug-in hybrid, and range-extender powertrains, in FWD, RWD, and AWD layouts.
At launch, the Electra L7 will feature a range-extender powertrain. It’s powered by a turbocharged 1.5-liter engine from SAIC, producing 154 hp (115 kW / 156 PS) and 230 Nm of torque. The engine doesn’t drive the wheels directly; instead, it acts solely as a generator to recharge the 40.2 kWh lithium-iron phosphate battery pack.
Propulsion comes from a 238 hp (252 kW / 343 PS) electric motor that Buick says delivers performance comparable to a 3.0-liter turbocharged V6. In EREV form, the Electra L7 accelerates from 0–100 km/h (0–62 mph) in 5.9 seconds and reaches a top speed of 200 km/h (124 mph).
More impressively, the Electra L7 delivers a combined range of 1,400 km (870 miles), including up to 302 km (188 miles) of EV-only driving under the (generous) CLTC cycle. Despite its performance, efficiency remains a highlight, with average fuel consumption rated at just 0.5 liters per 100 km (470 mpg).
In the near future, Buick plans to offer a fully electric version of the Electra L7. This variant will feature a CATL-supplied battery and a 900V electrical architecture, enabling support for ultra-fast charging. According to GM’s estimates, the system will be capable of adding up to 350 km (218 miles) of range in just 10 minutes, significantly reducing downtime during long trips.
Pricing and Availability
GM positions the new Buick Electra L7 as a “300,000-class” vehicle, suggesting a price near ¥300,000 ($41,800). Final pricing will be announced on September 28 when pre-sales open, with deliveries starting in Q4 2025.
As with other Electra-branded models, the L7 is likely to stay exclusive to China, so a US launch isn’t in the cards. Production will take place at the factory of the SAIC-GM joint venture in Wuhan.
Buick has sold over 10 million vehicles in China since 1998. Its local lineup offers a much wider choice of models compared to that in the US, including four SUVs, four sedans, one hatchback, and a range of minivans.
Ford, GM, and Stellantis stand to save billions under Trump’s emissions rollback.
On the other hand, Tesla could lose more than $1 billion annually in credit revenue.
EPA’s mission to protect health and the environment clashes with its current stance.
The automotive industry never stops changing, but 2025 has been unlike most as Donald Trump’s policies have changed the way automakers are doing business. The elimination of federal tax credits for electric vehicles is a major move on its own. Paired with the removal of penalties for missing fuel economy targets under CAFE regulations, the result is a playing field with entirely new rules.
The immediate winners are the combustion-heavy brands that can now focus on selling trucks and SUVs without financial punishment. On the other side, Tesla, Rivian, and other EV specialists stand to lose billions, not because demand for their cars will collapse, but because a critical source of revenue has been pulled out from under them. At the center of the storm is an Environmental Protection Agency that appears to be working against the mission printed on its own website.
Cash Flow Reversal
Since 2022, GM has spent some $3.5 billion buying regulatory credits, says Bloomberg. Ford and Stellantis have spent billions as well. That cash went to brands like Tesla and Rivian, which had plenty of credits to sell since their cars emit zero emissions. With the end of EV tax credits and CAFE fines for breaking regulations, Ford, GM and Stellantis can pour the money they would’ve spent on credits back into their own piggy bank.
Ford CEO Jim Farley said the policy shift has the “potential to unlock a multibillion-dollar opportunity,” noting that the Blue Oval is already retooling its Oakville, Ontario, plant to build Super Duty pickups instead of EVs.
GM is also cutting back on EV production, opting to overhaul factories for gasoline-fueled models. Stellantis, meanwhile, has gone so far as to revive the thirsty Hemi V8 engine, something previously thought dead in the age of electrification. With all of these changes, death might now be coming for some EV brands.
Trouble Ahead For EV Startups
Not only does the end of tax credits make purchasing an EV less palatable for many, but it also means that brands which used to benefit from selling tax credits now need to readjust to the new reality. Smaller brands, though, might be in big trouble. For example, Slate’s trucklet looks almost pointless with a starting price near $30,000 as the EV tax credit was vital to its success.
Even larger brands like Tesla and Rivian have leaned on the pure profit they’ve gained by selling regulatory credits. That money likely won’t be coming back anytime soon and that’s because the EPA seems willing to do just about anything the Trump Administration deems reasonable.
A Mission Ignored
It states plainly that its mission is “to protect human health and the environment.” Love them or hate them, electric vehicles are probably better at that than combustion cars. In fact, the EPA itself has an entire page dedicated to debunking the myths so many like to perpetuate surrounding them.
Things like “EVs are worse for the climate than gas cars,” “EVs are unreliable,” and “EVs will collapse the power grid.” Furthermore, J.D. Power is one of many sources that indicate that when all costs are considered, EVs are cheaper to buy, maintain, and own long-term when compared to combustion cars.
No one argues that people should be forced into one type of car. Choice matters. The government shouldn’t force anyone into a specific car or truck. But supporting policies that improve human health and the environment is what the EPA literally says it’s supposed to do.
By supporting Trump’s rollback of strict fuel economy standards and regulations, the agency is doing the exact opposite of its own mission statement. It’s clearing the way for automakers to build more polluting vehicles, burn more fuel, and erase billions in total consumer savings. If the EPA won’t uphold its own mission, it seems that nobody will.
General Motors wants EV policies in Canada to be reflective of consumer demand.
Canada had planned for all light-duty vehicle sales to be BEVs or PHEVs by 2035.
Prime Minister Mark Carney has announced a 60-day review of the country’s EV policy.
It’s not just in the US where the federal government is backing away from previous electrification commitments. Last week, Canadian Prime Minister Mark Carney announced that the government will no longer implement a mandate that would have required 20 percent of all new vehicles sold in Canada by next year to be electric. Unsurprisingly, this news has been welcomed by GM.
While recently speaking at an EV conference in Vancouver, GM Canada president Kristian Aquilina noted that the transition to electric vehicles will be volatile and that policies should reflect customer demand.
Automaker’s Perspective
“When it comes to EV adoption, it’s not going to be linear,” he said. “It’s going to be a lot of noise in the system that causes adoption to be a little bit more volatile than what an idealistic straight-line adoption curve that is enforced by a mandate would suggest.”
“In summary, we would be pursuing a future whereby EV policy in this country is just a bit more reflective of the realities of consumer demand, rather than a forced outcome,” Aquilina added.
Canada’s original plan set out a gradual ramp-up of EV sales until 2035, when all light-duty vehicles sold would need to be either plug-in hybrids or fully electric. By scrapping the 2026 mandate, Carney’s government has signaled a shift in approach, though it has also launched a 60-day review of the country’s broader EV program. According to CTV News, internal government documents suggest that annual sales targets may still be amended.
Good for Carmakers, Bad for Drivers?
Not everyone sees the delay of EV mandates in the country as harmless. Adam Thorn, director of transportation at the Pembina Institute, argued that relaxing the mandate helps automakers but undermines long-term benefits for Canadians.
“While automakers are facing serious challenges due to U.S. tariffs, the government could have maintained the overall purpose of the regulation by adjusting existing compliance flexibilities to provide automakers some much-needed breathing room,” he said.
Thorn suggested options like extending credits for plug-in hybrids and charging infrastructure, modestly easing targets, or reconsidering tariffs on Chinese-made EVs, steps that could support the industry without weakening Canada’s overall electrification goals.
GM will pause Cadillac Lyriq and Vistiq production starting in December 2025.
Tennessee plant to operate on one shift with temporary layoffs due to slower output.
Chevy also delays second shift launch for next-gen Bolt at Kansas City factory.
America’s auto policy is in flux yet again and it’s already messing with production schedules. General Motors is one of the first big names to blink. It will pause production of two electric models in December and scale back output well into 2026, a move that will bring temporary layoffs.
The decision follows policy changes from the Trump administration, which has scrapped the federal EVs tax credit and removed penalties for automakers that miss fuel efficiency targets. With fewer incentives in place, manufacturers have more reason to lean on gas-powered vehicles.
According to a report from Reuters, GM’s production cuts will start in October and November when its assembly plant in Spring Hill, Tennessee, which is responsible for building the Cadillac Lyriq and Vistiq, is shuttered. In December, assembly of the two models will also be paused.
Production at this same plant will also be significantly curtailed through the first five months of 2026. This will force the company to temporarily lay off employees working on one of the two shifts at the plant
Ripple Effects at Other Sites
It’s not just this site in Tennessee that is impacted. GM has reportedly decided to indefinitely delay the start of a second shift at its plant near Kansas City. This site will be home to the next-generation Chevrolet Bolt, which is set to commence production later this year. While this move isn’t expected to impact the launch of the new Bolt, it does mean that The General will not ramp up production as much as it had initially planned.
GM’s electric lineup has been gaining traction, with August marking its strongest EV sales month to date at 21,000 units. The thing is, much of that surge is tied to the final days of the $7,500 federal tax credit, which expires at the end of the month. Without that incentive, demand for electric vehicles will likely ease.
The company admitted that changes are less about immediate EV demand and more about preparing for slower overall industry growth. In a statement to Reuters, GM said it is “making strategic production adjustments in alignment with expected slower EV industry growth and customer demand by leveraging our flexible ICE and EV manufacturing footprint.”
Still, executives are keen to emphasize that the automaker is not backing away from electrification entirely or they’re just putting on a brave face. According to GM head of North America Duncan Aldred, “the strength of our ICE portfolio will continue to separate our brands from the pack and give us flexibility and profitability that EV-only companies lack.”
GM reported record EV sales in August as buyers rushed before credits expired.
Strong demand is expected through September as the tax credit deadline nears.
After the incentive ends, GM expects sales to collapse and will reduce production.
The clean vehicle tax credit is set to expire on September 30 and that looming deadline has kept dealers busy. In fact, GM said “U.S. electric vehicle sales likely set an all-time monthly record in August” as consumers made a mad dash to buy an EV before the incentive expires.
Thanks to the rush, GM sold more than 21,000 EVs in August to set a new monthly record. While the automaker didn’t release hard numbers, they reported strong demand for the affordable Chevrolet Equinox EV as well as the upscale Cadillac Lyriq and GMC Sierra EV.
General Motors went on to say they’re the second best-selling EV company in America and they’re expecting a busy September as well. What happens next is the big mystery, but sales are expected to collapse.
GM North America President Duncan Aldred said, “There’s no doubt we’ll see lower EV sales next quarter after tax credits end September 30, and it may take several months for the market to normalize.” He went on to say “we will almost certainly see a smaller EV market” and the company will respond by cutting production. Despite this grim outlook, Aldred believes they can still grow their electric vehicle market share.
As he explained, before the Inflation Reduction Act was passed, the strongest EV segments were for luxury and affordable vehicles. GM has these bases covered with Cadillac as well as the Equinox EV and reborn Chevrolet Bolt.
The automaker added, “We are seeing marginal competitors dramatically scale back their products and plans, which should end much of the overproduction and irrational discounts we’ve seen in the marketplace.” GM also noted their ICE-powered lineup will “continue to separate our brands from the pack and give us flexibility and profitability that EV-only companies lack.”
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