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The Volkswagen AG unit said only the Audi plug-in hybrid
electric will retain its existing federal credit through the
rest of the year. Audi said the legislation set to be approved
by the U.S. House of Representatives on Friday "will have
consequential impact on our business and to our consumers."
The bill makes any electric vehicles assembled outside North
America ineligible for tax credits, which has brought criticism
from the European Union, South Korea and many automakers. The
bill does allow credits for customers with binding contracts for
vehicles not yet delivered when Biden signs the legislation.
Kia said in a letter to its U.S. dealers that the bill means all
of its EV and plug-in vehicles will no longer qualify for tax
credits once the bill is signed unless customers have written
binding contracts.
Kia urged dealers to reach out to customers on waiting lists to
enter into contracts before Biden signs the bill. The letter,
which the company confirmed on Friday, called the "sudden
change" in EV tax policy "very disruptive to our business and
unfortunately for our customers."
VW-owned Porsche said on Friday that buyers of its electric
Taycan and plug-in hybrid Cayenne and Panamera vehicles will
also immediately lose eligibility once the legislation is
signed.
"With respect to customers who placed vehicles on order and are
still awaiting delivery, their credit eligibility depends on
individual sales agreement, which is a matter between them and
their independently owned and operated Porsche dealership," a
Porsche Cars North America spokesperson said.
The Alliance for Automotive Innovation, a trade group that
represents VW, General Motors Co, Toyota Motor Corp and Ford
Motor Co among others, said last week the law would make 70% of
72 U.S. electric, plug-in hybrid and fuel-cell EVs that
currently qualify ineligible upon Biden's signing the law.
On Jan. 1, when the new bill's additional income and price caps
and battery and critical mineral sourcing rules take effect,
"none would qualify for the full credit when additional sourcing
requirements go into effect," the group added.
(Reporting by David Shepardson in WashingtonEditing by Jonathan
Oatis and Matthew Lewis)
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