Friday, September 17, 2021

Tesla, Toyota and Honda have criticized the $ 4,500 tax credit for union EVs

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A man is installing a charging plug on a General Motors (GM) Chevrolet 2017 Volt Hybrid Electric Vehicle (EV) at a charging station in Jeju, South Korea.

Cho Sung Joon | Bloomberg | Getty Images

Detroit-Tesla, Toyota Motor And other automakers have criticized the $ 12,500 proposed in tax incentives for electric vehicles, including additional cash for union cars and trucks produced in the United States.

Automaker executives including Tesla CEO Elon Musk said the $ 4,500 incentive for vehicles assembled at the union factory was unfairly advantageous. General Motors, Ford motor and Stellantis (Former Fiat Chrysler). The hourly workers of these automakers (traditionally known as Detroit 3) are represented by the United Auto Workers.

The comment was made earlier EV incentive package It is being discussed by the Houseways and Means Commission on Tuesday as part of the proposed $ 3.5 trillion spending bill.

“This was written by a Ford / UAW lobbyist while manufacturing an electric car in Mexico. It’s not clear how this will help American taxpayers,” Musk tweeted Sunday night. ..

Ford Currently only all electric vehicles Mustang Mach-E Crossover made in Mexico.The company has plans to produce an electric version of F-150 pickup US transit van from next year.

Tesla produces the largest number of vehicle batteries and electric vehicles in the United States, but like Toyota and other non-domestic automakers, its workforce is not represented by the union. Hyundai, Honda and Nissan also opposed the bill, saying that the incentives created by the union were unfair and prejudiced.

Incentives include the current $ 7,500 tax credit for purchasing plug-in electric vehicles and $ 500 if the vehicle’s battery is manufactured in the United States. You will be eligible for the incentive again. Buyers of EVs produced by US members are eligible for an additional $ 4,500 tax credit, for a total incentive of $ 12,500.

Toyota described the bill as “unfair” and “wrong,” and said the proposal discriminates against the unionized US workforce.

Toyota’s manufacturing executives wrote in a letter to the Commission’s chair on Monday: “Current methods and means The Commission’s draft is an electric vehicle by discriminating on the basis of the choice not to unite U.S. car workers. The aim is to accelerate the deployment of. ” “This is unfair and wrong. Please reject this blatantly biased proposal.”

Honda made a similar comment in a statement on its website. “If Congress is serious about tackling the climate crisis and the goal of seeing these vehicles manufactured in the United States, treat all EVs made by US car workers fairly and equitably. We should ask Congress to remove the discriminatory language that links unions to incentives from the proposed budget adjustments. “

GM, Ford and Stellantis support EV incentive packages.

“This law helps more Americans enter the EV, while at the same time working for American manufacturing and trade unions,” Kumar Garhotra, president of Ford’s Americas and international markets, said in a statement. Will support. “

President Joe Biden Parent union We have also continued to provide incentives to expand the production of electric vehicles in the United States.

AutosDrive America, a lobbying organization representing international car makers in the United States, calls EV incentive packages “non-Americans” and “restricts consumer choice, non-member American workers and their families. , And created an unequal competition to punish its community. “

According to Reuters, the proposed EV credit is valid for 10 years, allowing consumers to deduct the value of the credit from the selling price at the time of purchase. Michigan Democrat Dan Kildee, who proposed the bill, told the press that the new EV tax credit would cost an estimated $ 33 to $ 34 billion over that period.

President Joe Biden will speak on May 18, 2021 during a tour of the Ford Rouge Electric Vehicle Center in Dearborn, Michigan.

Michael Wayland | CNBC

Apart from union incentives, members of the Houseways and Means Commission on Tuesday asked questions about the domestic content of the vehicle and the bills that could benefit the wealthy.

The bill states that individual taxpayers must have an adjusted total income of $ 400,000 or less in order to obtain a new EV tax credit. EV credits are also limited to cars priced under $ 55,000 and trucks up to $ 74,000.

Tesla, Toyota and Honda have criticized the $ 4,500 tax credit for union EVs

Source link Tesla, Toyota and Honda have criticized the $ 4,500 tax credit for union EVs

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