Toyota, Honda oppose US house electric vehicle tax plan

WASHINGTON, Sep 11 (Reuters) – Toyota Motor Corp. (7203.T) and Honda Motor Co. (7267.T) sharply criticized a proposal by Democrats to deliver union-built electric vehicles to the United States in the US House of Representatives on Saturday . Additional $4,500 tax incentive.

Toyota said in a statement that the plan unveiled late Friday “does not discriminate against American autoworkers based on their choices.”

The bill, set to be voted on Tuesday by the Democratic-led House Ways and Means Committee as part of a proposed $3.5 trillion spending bill, would benefit Detroit’s Big Three automakers, which have union-represented auto plants. read more

In a statement, Honda called the bill “unfair” and said it “discriminates between EVs made by hard-working American auto workers, simply on the basis that they belong to a union. … Alabama , the Honda production partners in Indiana and Ohio who will manufacture our EVs deserve fair and equal treatment by Congress.”

The proposal, which will cost $33 billion to $34 billion over 10 years, would increase the maximum tax credit for electric vehicles to $12,500, up from the current $7,500. The $12,500 figure includes a $500 credit for using a US-made battery.

The proposal is a key part of Democratic President Joe Biden’s goal to ensure that EVs comprise at least 50% of US vehicle sales by 2030 and boost US union jobs.

The bill, however, phases out automakers’ tax credits after sales of 200,000 electric vehicles, which would make General Motors Company (GM.N) and Tesla Inc (TSLA.O) eligible again. It will also create a new small credit for used EVs of up to $2,500.

GM, Ford Motor Company (FN) and Stelantis NV (STLA.MI), Chrysler’s parent, assemble their US-made vehicles at plants represented by the United Auto Workers (UAW) union.

In contrast, foreign automakers operating in the United States as well as Tesla do not have unions representing assembly workers and many of them have struggled with UAV’s efforts to organize US plants.

Tesla would be eligible for a credit of up to $8,000 under the bill.

UAW President Ray Curry said the tax credit provision “will go a long way in supporting well-paying union jobs in the EV auto sector, which President Biden has championed.”

The bill limits EV credit to cars costing more than $55,000, while trucks can cost up to $74,000.

Toyota said it would “struggle to focus taxpayer dollars on making all electrified vehicles accessible to American consumers who can’t afford high-priced cars and trucks.”

Reporting by David Shepardson; Editing by Jonathan Otis

Our Standards: Thomson Reuters Trust Principles.

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