Purchases of popular models like the Tesla Model 3 and the Ford Mustang Mach-E may no longer entitle buyers to tax savings because the cars do not meet tougher sourcing requirements.
Ford and other automaker have had to readjust their electric vehicle production plans because sales have been weaker than they had expected.
Two years behind schedule, the electric model has an unusual design that sets it apart from rival pickups, which could limit its sales.
A battery plant in Michigan will be smaller than planned, Ford said, citing slower E.V. demand than expected, as well as labor costs.
President Biden’s 2022 climate act spurred big investments in U.S. battery factories, but it has not similarly boosted E.V. sales.
Growth is brisk but slower than expected, causing automakers to question their multibillion-dollar investments in new factories and raising doubts about the effectiveness of federal incentives.
With tentative agreements in place, a six-week strike against Ford, General Motors and Stellantis could soon come to an end. But the union’s rank-and-file members still need to approve the deals.
President Biden’s support for autoworkers helped them make big wage gains, and labor organizers are looking to bring about similar gains elsewhere as carmakers transition to electric vehicles.
General Motors became the last of the three large U.S. automakers to reach a tentative agreement on a new contract with the United Automobile Workers union.
Stellantis, the parent of Chrysler, Jeep and Ram, and the United Automobile Workers union said they had reached a deal on a new contract similar to the one that the union reached with Ford.