Electric Genesis SUV Won't Qualify for U.S. Subsidies

  • By Ryu Jung

    January 10, 2023 11:15

    Genesis' GV70 SUV will not be eligible for U.S. subsidies for electric cars despite being produced there. 
    The protectionist Inflation Reduction Act limits subsidies to electric cars made in North America, and the GV70 would qualify because it is made in Alabama. 
    But it will be too expensive at over US$55,000 for subsidies for electric sedans, and under U.S. classification rules it will also not qualify as a SUV eligible for subsidies up to a price of $80,000. 
    Hyundai therefore decided not to apply for the tax credits. 
    U.S. classification stipulates that a SUV must have three-row seats, a four-wheel drive or weigh more than 2,721 kg and the floor is higher than a certain level. But the GV70 sits too low to meet the criteria and has only two rows of seats. 
    Even American automakers have complained about the classification rules because many of their own SUVs fail to make it into the category. 
    Tesla's seven-seater Model Y is the only one of its cars to classify as an SUV, while the five-seat version does not. Tesla CEO Elon Musk complained on Twitter that the IRA subsidies are "messed up" and GM also criticized the act for failing its Lyriq EV.  
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