Costco, Ford, & GM Apply The Streisand Effect To Electric Vehicles

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Last Updated on: 11th August 2025, 02:10 pm

The new “OBBA” federal tax bill was supposed to be the death knell for the vehicle electrification movement in the US. Guess again. In a living manifestation of the notorious Streisand effect, Costco has put its 50 million or so members on alert that the clock is ticking on the $7,500 EV tax credit, while Ford and General Motors have spent the past week talking up their plans for electric vehicles, electric vehicles, and more electric vehicles. If they go down, they’re going down swinging.

Electric Vehicles & The Streisand Effect

The Streisand effect popped into the vernacular in the early 2000s. It’s shorthand for a burst of publicity that explodes in all directions when someone with a high media profile inadvertently draws attention to a thing practically nobody knew or cared about — until they drew attention to it.

That sums up the current state of the vehicle electrification movement here in the US, where federal policymakers have been taking various measures to tamp down the enthusiasm for zero-emission mobility.

Some of those measures have probably sailed under the radar of the general public, such as the attempt to halt the federally funded NEVI public charging program (the what?) and dial down the US Postal Service’s plans for adding more electric delivery trucks to its fleet (they were?).

When the topic turns to taxes, though, everybody’s ears prick up and the media spotlight cranks to 11 on the dial. That’s what happened when Congress passed the “One Big Beautiful Bill Act” in July. The new tax bill eliminates the $7,500 federal tax credit for electric vehicles after September 30, barely seven weeks from now.

Everybody Is Talking About Electric Vehicles Now

With passage of the OBBA, the pressure is on to keep the EV sales momentum going up to the September 30 deadline. The popular wholesale buying club Costco is among the leading EV stakeholders to spread the word. Though better known for helping households and small-to-medium businesses save money on groceries and other essentials, Costco also offers a Costco Auto service that enables its US members to avail themselves of a “haggle-free” experience at participating car dealers.

The Costco Auto service includes electric vehicles, and GM, for one, is probably happy with the results. Last year, Costco began pitching a $1,000 incentive on the purchase of a 2024 Chevy Equinox EV. Coincidentally or not, the Equinox has been front and center in EV sales growth for General Motors this year.

Costco also reinforced its support for EVs earlier this year with the launch of the new Costco Auto online EV Marketplace. Costco has been adding more EV buyer guides and other features the to EV Marketplace since its launch. Now, with the untimely demise of the EV tax credit looming ahead, last week Costco added new members-only incentives for both GM and Volvo. Costco also emphasizes that their Costco Auto incentives can stack onto manufacturer incentives and the federal tax credit all the way up to September 30, on top of any other incentives available to EV buyers.

Ford & GM Pitch Affordability

The elimination of the tax credit comes at a particularly bad time for Ford and GM. The two automakers initially concentrated on high-end electric SUVs and pickup trucks, aiming to compete in the zero-emission mobility market at industry leader Tesla’s price point while the cost of EV batteries was still running high. Now, just when battery costs have come down and the promise of a more affordable ride is coming into view, federal policymakers have thrown a $7,500 monkey wrench into the works.

Nevertheless, both Ford and GM are sticking to their respective programs. Last year, Ford confirmed that its secret, not-so-secret “skunkworks” EV project was in high gear. By the beginning of this summer, the intention became clear: Stop competing with Tesla and start learning from China’s successful, affordable EV journey.

Last week, Ford announced that a big reveal about its affordable EV plans is forthcoming, complete with a high-profile media event to be held in Kentucky on August 11. Ford enthusiasts and other members of the public can follow along online here at 10:20 AM EST.

Ford is pitching the event as its “Model T Moment,” referring to the secretive project that transformed the entire global auto industry in the early 20th century.

“The Model T was more than a single model or body style — it was a flexible platform. With their capability, reliability and repairability, some early Model Ts were fodder for stunts like driving to the top of Pike’s Peak in the Rocky Mountains, climbing the stairs of a courthouse or competing in a cross-country race from New York to Seattle along the nation’s primitive roads, a contest it won over other higher-powered competitors,” Ford explained on its “Ford From The Road” blog last week.

Ford dropped another hint last week when it officially opened its new Electric Vehicle Development Center in Long Beach, California, repurposing an existing 95-year-old campus. In a blog post on the topic, Ford technical program manager Ann Diep let slip another hint about the August 11 announcement. “I can tell you what’s guiding every decision: simplicity, efficiency, and the desire to spark excitement,” Diep wrote.

The Repairability Factor

So, reading the tea leaves, not too many hints surfaced in last week’s blog post aside from simplicity, efficiency, excitement, flexibility, capability, reliability, repairability, durability, and stunt-worthiness. If one of these sticks out like a sore thumb to you, drop a note in the comment thread. My money is on repairability.

The right-to-repair movement aside, electric vehicles have a head start over conventional cars because service costs are far lower. However, that doesn’t mean repair costs following a collision are any less expensive, so it will be interesting to see if, and how, Ford addresses that issue.

One key angle to consider is damage to the battery. Replacing an EV battery is an expensive proposition. However, four intertwining technologies have emerged to take some of the sting out. One is the falling cost of the battery, and the others are the battery swapping trend, second-life applications, and new battery recycling technologies.

GM Banks On Affordable Electric Vehicles, Too

What do you think, some day in the sparkling green future could a repair shop, or a home DIY enthusiast, pop out an old EV battery and plug in a new one as easily as changing a tire, with a rebate on second-life or recycling value helping to cut down the expense?

Maybe, maybe not. On its part, GM is focusing on the cost of the battery. In a page ripped from the pages of the Chinese EV story, last week GM announced that it would buy low-cost LFP batteries from the top Chinese battery maker CATL for its forthcoming Chevy Bolt over the next two years, while it continues to work on setting up an LFP factory here in the US.

That’s … interesting. As with Ford, GM’s new affordable EVs won’t hit the market until long after the $7,500 tax credit falls into the dustbin of history. On top of the tax credit issue, the tariff wars have thrown the entire US auto industry for a loop. Why not wait just a couple of years for domestic sourcing to come through?

Be that as it may, last week GM also dropped word that its cost-cutting journey also involves a leveling up of its partnership with Hyundai. The two automakers are collaborating on four hybrid and conventional cars for the Latin America market, along with an all-electric commercial van for North America.

Photo: Tariff wars and tax credits notwithstanding, Ford celebrated the grand opening of its new Electric Vehicle Development Center in California last week (courtesy of Ford).