Honda EVs Might Qualify for Tax Credit score As GM Makes Them in U.S.

Honda has its first EVs coming within the type of the Honda Prologue and the return of the Acura ZDX. However they’ll be Honda/Acura merchandise extra in identify and design solely due to Honda and Basic Motor’s EV partnership. The EVs shall be produced in GM’s amenities with the Basic’s Ultium batteries and Ultium drive methods. And as Automotive Information factors out, this may occasionally end in pricing taking part in out in Honda’s favor.

When the Prologue and ZDX come to marketplace for the 2024 mannequin 12 months they’ll have a giant benefit over rivals from Hyundai/Kia, Toyota, and so forth: they could qualify for the $7,500 tax credit score. So, GM is doing all of the heavy lifting on this relationship, and Honda might very effectively profit from it. Whereas Honda hasn’t but stated the place the Prologue and ZDX shall be manufactured, Automotive Information bets they’ll be made in GM’s Spring Hill, Tennessee plant. Spring Hill presently builds just one EV: the Cadillac Lyriq. The Cadillac XT5, XT6, and GMC Acadia are additionally manufactured there, however GM has stated manufacturing of these crossovers will transfer elsewhere so Spring Hill can manufacture extra EVs.

Even when the EVs aren’t made at Spring Hill there’s an alternative choice. Earlier this month, Honda introduced that it was investing $700 million to retool three of its vegetation in Ohio for EV manufacturing and one other $3.5 billion to fabricate a battery facility. The Prologue and ZDX may be made there as effectively.

The Inflation Discount Act threw automakers for a loop. The invoice’s inclusion of a provision requiring EVs bought within the U.S. to have their closing meeting in North America despatched automakers scrambling. A lot of them obtained screwed, like Hyundai, whose hot-promoting Ioniq and Kia EV6 EVs have been instantly disqualified from utilizing the credit score. And from our final depend, simply 15 EVs from 9 automakers will qualify. Regardless that Honda’s success is now all on the again of GM, Honda ought to depend itself fortunate the corporate’s EVs might need a leg up over the competitors.