Due to the new tax exemptions for electric vehicles implemented by the US federal government, Fisker will accelerate preparations for production of their new all-electric SUV, Ocean, in the US.
Earlier in August of this year, the US federal government passed the “Inflation Reduction Act”, which includes provisions for electric vehicles to receive a tax exemption of up to $7,500. However, the requirements are very strict, and there are different rules in January 2023.
Currently, only domestically assembled electric vehicles and plug-in hybrid vehicles are eligible for the aforementioned tax exemption in North America.
Starting from January, only cars valued below $55,000 or trucks/SUVs valued below $80,000 are eligible for the $7,500 tax exemption. In addition, single individuals earning over $150,000 per year and married couples earning over $300,000 per year are not eligible for any form of electric vehicle tax exemptions.
Also, the new regulation requires 40% of the metal materials used in the production process to come from North America or from a free trade partner’s supply.
For Fisker, their new all-electric SUV Ocean, originally planned to be put into production in November, meets the pricing requirements of this policy. Starting from the Sport version with a lowest price of $37,499 to the One version with a highest price of $68,999, they all meet the requirement of being priced below $80,000. Therefore, as long as the factory is built in the United States, the current related welfare policies will be very advantageous for Fisker.
According to Automotive News, Fisker is considering multiple options, such as purchasing existing US factories or partnering with their ally Magna to create another plan. The CEO also stated that Magna will commence production of the first batch of Fisker Ocean SUV in Austria in November of this year. In a recent interview, he shared, “I am considering bringing the production of Ocean to the US, and we are seeking opportunities to produce it before 2024.”
Henrik Fisker further added, “The new policy certainly makes us want to speed up our pace because we believe that this could give us an advantage.”
In addition, Fisker is also planning to produce a second model named Pear. Fortunately, they have already reached an agreement with Foxconn to produce the Pear model in Lordstown, Ohio soon.
Of course, besides Fisker, this policy will also drive more global car companies to consider producing their own electric vehicles in the United States, especially for brands that focus on low-priced models, such as Toyota and Hyundai. On the other hand, this new policy will also be good news for Chinese auto companies who plan to expand in the US market.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.