The so-called Inflation Reduction Act was supposed to, you know, reduce inflation, right? A lot of people thought it was festooned with all sorts of things which had nothing to do with inflation, and one of those things was the Qualified Plug-in Electric Drive Motor Vehicle Credit:

Inflation Reduction Act of 2022

Enacted August 16, 2022

The Inflation Reduction Act of 2022 (Public Law 117-169) amends the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and adds a new requirement for final assembly in North America that takes effect on August 16, 2022. Additional provisions will go into effect on January 1, 2023. Further guidance on these provisions is forthcoming. Find more information about the credit from the Internal Revenue Service.

List of Vehicles with Final Assembly in North America

The following table provides a list of Model Year 2022 and early Model Year 2023 vehicles with final assembly in North America based on data submitted to the National Highway Traffic Safety Administration (NHTSA) and FuelEconomy.gov as of August 1, 2022. Note that for some manufacturers, the build location may vary based on the specific vehicle, trim, or the date in the Model Year when it was produced because some models are produced in multiple locations. The build location of a particular vehicle should be confirmed by referring to its Vehicle Identification Number (VIN) using the VIN decoder below or an information label affixed to the vehicle.

As vehicle manufacturers continue to submit the applicable vehicle identification information to the relevant government agencies, this list will be updated as more information becomes available.

NOTE: Some manufacturers that have vehicles assembled in North America have reached a cap of 200,000 EV credits used and are therefore not currently eligible for the Clean Vehicle Credit.

Of course, the Europeans are just hopping mad that the tax credit only applies to vehicles whose final assembly takes place in North America, but wait until they figure out that Canada and Mexico are in North America. The Europeans would much rather put Canadians to work than Americans.

The tax credit is up to $7,500 for purchase of a new, plug-in electric, and since President Biden and his supervisors subordinates very much want to have Americans gobbling the things up, that $7,500 credit is supposed to help consumers who just can’t quite afford the things be able to say, “OK, yeah, with this tax credit, we can go ahead and buy a Ford Mustang Mach E!”

Oops!

Ford hikes price of electric Mustang Mach-E by as much as $8,475 due to ‘significant’ battery cost increases

by Michael Wayland | Published Friday, August 26, 2022 | 10:59 AM EDT | Updated Friday, August 26, 2022 | 2:07 PM EDT

• Ford Motor is hiking the starting prices of its electric Mustang Mach-E crossover by more than $8,000 for some models.
• The increased prices will go into effect for new orders placed starting Tuesday, when order banks reopen for the 2023 model year.
• Ford said the markups are due to “significant” material cost increases, continued supply chain strains and market conditions.

DETROIT – Ford Motor is hiking the starting prices of its electric Mustang Mach-E crossover by more than $8,000 for some models, as it reopens order banks for the 2023 model year.

The company on Thursday said the markups – ranging between $3,000 and $8,475, depending on the model and battery – are due to “significant material cost increases, continued strain on key supply chains, and rapidly evolving market conditions.”

The Mach-E is the latest electric vehicle to experience a price increase, as raw material costs for batteries for electric vehicles more than doubled during the coronavirus pandemic.

The starting prices for the 2023 Mustang Mach-E will now range from about $47,000 to $70,000, up from roughly $44,000 to $62,000 for the 2022 model year. Prices exclude taxes and shipping/delivery costs.

Ford earlier this month also raised the starting prices of its electric F-150 Lightning pickup by between $6,000 and $8,500, depending on the model. The automaker cited similar reasons for those increases, specifically related to raw materials such as lithium, cobalt and nickel that are used in batteries for the vehicles.

There’s more at the original, but I’m shocked, I tell you, shocked!

Of course, the various vehicle price ranges are based on that most important characteristic: range. The ones that see price increases of ‘only’ $3,000 are the ones with the lowest battery capacity and therefore shortest range. You buy the biggest battery pack available, and you can get a listed 305 miles on a full charge. Of course, you’re also going to be getting that $8,475 price increase! We don’t know yet what the 2023 Mustang Mach E will have for a Manufacturer’s Suggested Retail Price, but the chart to the right shows MSRPs for the four versions of the 2022 model.

The “Select” model had a range of 211 miles. It was assumed that the 2023 MSRPs would see an increase anyway, but the new price hikes, well, you’d be paying $70,000 or more for the GT model.

I must say that I am amused. Who could ever have guessed that this would happen?