Driving the news: Ford $F ( ▲ 0.65% ) is canceling a program designed to extend the $7,500 federal EV tax credit through year-end leasing arrangements, following General Motors' $GM ( ▼ 0.48% ) similar retreat earlier this week, according to Reuters.
For context: After the Trump administration ended the EV tax credit on September 30, both Ford and GM announced workarounds allowing dealers to still make use of the subsidies via leasing.
However, GM dropped its program after Senator Bernie Moreno sent a letter to Treasury Secretary Scott Bessent condemning automakers trying to "continue bilking the U.S. taxpayer.”
It's unclear why Ford canceled its program.
What's next: Despite backing out of the workarounds, both Ford and GM say they'll self-fund EV incentives to keep lease payments competitive. Ford Credit is offering 0% financing for 72 months on new EVs, while GM is self-funding lease incentives through October.
Big picture: Self-funded manufacturer incentives typically can't match the depth of federal subsidies. Aggressive lease rates might clear some units short-term, but once automakers pull back support, many dealers will likely struggle to move EVs until pricing comes down.
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