With Tax Credit Cut Looming, GM Promises New Incentives for the Chevrolet Bolt

Steph Willems
by Steph Willems
with tax credit cut looming gm promises new incentives for the chevrolet bolt

General Motors’ sole electric vehicle, the cheerful Chevrolet Bolt, will see its MSRP stand firm in the face of an EV tax credit that drops by half come April 1st, the automaker claims.

In the fourth quarter of last year, GM sailed past the volume barrier that triggers a wind-down of the federal credit, meaning Bolt buyers will see less of an incentive to get behind the wheel. The $7,500 credit falls to $3,750 next week, before halving again in six months time. Knowing that EV buyers still need a push, GM plans to make the Bolt more attractive to green penny pinchers.

Speaking to Reuters, GM spokesman Jim Cain said “it is easier to react to the market by working with dealers and your marketing team than it is to change sticker prices.”

A base Bolt LT retails for $37,495 after destination and before the federal credit. When GM was shy of the 200,000-unit green cutoff, that placed the after-credit price below $30k. Now, GM will have to compensate for the $3,750 overall price hike.

Tesla, of course, dropped its prices to compensate for a reduced credit, but Tesla prices change more frequently than David Bowie’s 1970s stage persona.

Speaking recently at the Bolt’s birthplace, GM’s Orion Assembly (where a new Chevrolet EV will eventually be built), CEO Mary Barra said her company plans to boost its marketing efforts for electrified vehicles. She did not mention the looming tax credit cut.

While GM plans to offer new Bolt incentives next week, Cain wouldn’t elaborate on what buyers can expect. The company remains “sensitive to affordability,” he said.

Currently, some Bolt customers — those in California, for example — stand to receive a $1,000 cash allowance, with lessees offered (hmmm…) $3,750 cash back.

[Image: General Motors]

Join the conversation
3 of 18 comments
  • Detroit-X Detroit-X on Mar 29, 2019

    18109 Bolts shipped (NOT sold yet) to dealers in the US in 2018. -22.6% from 2017. 3084 Chevy dealers 5.84 Bolts per dealer. 17M US market Wow. Fire 15k people. All electric future, coming soon!

  • Arthurk45 Arthurk45 on Mar 30, 2019

    It's not just the increased price, per se, that is hurting sales, but the appearance of similar EVs (Kia NIRO, Hyundai Kona EV, etc) that are every bit as good as the Bolt (or better) and still have their full $7500 Fed tax credits available and will have for quite some time. Their stickers are no higher than the Bolt's, sometimes lower.

    • HotPotato HotPotato on Mar 30, 2019

      Do they "really" exist though? I feel like Hyundai/Kia has gotten massive free media exposure on promises of EVs that are always just around the corner...when in reality they sell their EVs only in compliance states, and historically haven't even produced enough to meet demand for the half-hearted me-too compliance EVs they have offered. That said, I suspect my next car will be a 2020 Kia Soul EV in construction-vest green. With double the range and power of the current Soul EV, all the useful-car attributes of a tall hatch, and Kia's remarkable ability to keep the Soul's box-it-came-in styling fresh and hip, all I ask is an affordable lease.

  • Wjtinfwb How does the ICE mid-engine C8 platform work for... anything else? A sedan? SUV? With a mid engine configuration? A mid-engine SUV will have to be Suburban sized to offer the utility of a CRV. GM should dust off the Omega platform designed for the Cadillac CT6 for an SUV/Sedan offering with exceptional handling, Rear or AWD capability and acceptable space utilization. They also need to focus on interior fit & finish, trim choices and high quality final engineering and assembly. What GM doesn't need is another half-baked product with a storied and prestigious badge on the decklid and a premium price on the Monroney. No more Cimarron's, Allante's or X-cars needed to tarnish the reputation of Corvette.
  • InCogKneeToe BUILD It and they will come.By Build It, I mean a Vehicle that the Customer Wants and it works for them. It could be called Chevette for all that that matters. The Mach E's success isn't because it totes the Mustang on it.Just build what people want, the next Caravan/Taurus/Beetle/Maverick (truck).
  • YellowDuck Wait...how do you make a mid-engine crossover? Or even a 4-door coupe? Me not get.
  • 28-Cars-Later Thanks Corey. The head stud job on NOrthSTAR-T was $3K *years ago* as it involves an engine pull so rear wheel arch rust in and of itself isn't a show stopper. I'll be sure to check out the trunk as it may start to add up on deferred maintenance. Supposedly this was garaged so the underneath the rockers etc. should be decent but if those are shot its not gonna work.
  • Mark 2016 Hyundai Sonata Hybrid, G4NG engine with connecting rod bearing issues. Engine needs to be replaced, but Hyundai is denying warranty claim. I have all maintenance records from mile zero. It has been in Hyundai Service department 5 time in 4 months. They added the knock sensor and software update to let you know the engine is about to blow up. They kicked the can down the road doing patch work until the car was past the 120k extended extended warranty. I have that documentation too. So how can I join the class action law suit or find a Lawyer that handles these types of issues?