General Motors Co. no longer will apply for federal electric vehicle tax credits as part of a scheme to extend savings to customers after Congress and President Donald Trump axed the government incentive program in September, the Detroit automaker confirmed Wednesday.

The company will continue to offer about $6,000 in savings on EV leases through October, with the cost footed by GM. The federal tax credit offered savings up to $7,500.

“GM worked on an extended offer for the benefit of our customers and dealers,” according to a GM statement. “After further consideration, we have decided not to claim the tax credit. GM will fund the incentive lease terms through the end of October.”

GM and crosstown rival Ford Motor Co. used their finance arms to place down payments on EVs in inventory from dealerships at the end of September. That would enable the companies to apply for the federal tax credits before the program expired Sept. 30 and then extend the discounts to their customers through leases beyond the deadline. Reuters was first to report GM's reversal Wednesday.

A Ford spokesperson declined to comment Wednesday on whether the automaker will reverse course on its tax credit plan.

Sources familiar with the matter said U.S. Sen. Moreno, R-Ohio, met with both GM and Ford and pressured the automakers to abandon the tax credit plan.

The automakers’ plan was to pass along savings to lessees to avoid a sudden price uptick following the loss of the tax credit.

Most EVs cost thousands of dollars more than similar gas-powered models, a top reason why the electric market is lagging in the United States. Without the tax credit, analysts and automakers predict a steep drop in sales, at least temporarily.

Ford CEO Jim Farley said last month he wouldn't be surprised if U.S. EV sales are halved following the loss of the tax credit.

The idea behind Ford and GM’s programs was to help EV buyers transition away from discounted prices with the end of the government incentives.

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