Stellantis, VW Shares Fall After US Tax Credit Cuts
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Stellantis NV and Volkswagen AG shares declined as some of their plug-in cars lost access to U.S. tax credits under tougher rules that took effect this week.
VW’s ID.4 electric crossover lost its full $7,500 tax credit, according to the latest listing by the Department of Energy and Environmental Protection Agency. Models from the likes of Nissan Motor Co. and Stellantis that previously received as much as $3,750 are now also ineligible.
Stellantis shares fell as much as 3.8% in Milan. VW’s stock declined as much as 1.4% in Frankfurt.
The reclassification, part of President Joe Biden’s Inflation Reduction Act, tightens domestic sourcing requirements for battery parts and the raw materials used to build them. The number of EVs and plug-in hybrids that currently qualify for a credit is 18 models, down from 22 last year.
(Bloomberg)
Europe’s carmakers are bracing for business to get tougher in the U.S. as President-elect Donald Trump prepares to take office later this month. He has made rescinding Biden’s pro-EV initiatives a key plank of his economic platform and has threatened tariffs on foreign-made cars.
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Stellantis has been plagued by product delays and bloated inventories in the U.S. that led to the ouster of its CEO last year. The manufacturer also is facing headwinds at home: Its passenger-car production in Italy slumped 46% last year to the lowest level since 1956, amid poor demand for models such as the electric Fiat 500.
VW has long struggled in the U.S., with its forthcoming Scout line of battery-powered sport utility vehicles and pickup trucks touted as a linchpin for expanding market share as growth slows in Europe and competition intensifies in China. The automaker — which is cutting costs in Germany — in November named former Porsche and Rivian executive Kjell Gruner as head of its Americas division to bolster sales there.
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