Tesla, Toyota spar with Ford, UAW on EV tax bill

WASHINGTON, Sept. 13 (Reuters) – Toyota Motor Corp and Tesla clash with Ford Motor Co. (FN) and the United Auto Workers Union (UAW) over a proposal by Democrats in the U.S. House to donate U.S.-made electric vehicles an additional $ 4,500 tax incentive.

In a letter to Congress, Toyota (7203.T) said the plan discriminates against nearly half of non-union U.S. auto workers and called on lawmakers to refuse to give “exorbitant tax breaks” to wealthy buyers of cars and trucks.

The bill, which is due to be passed Tuesday by the House Ways and Means Committee as part of a $ 3.5 trillion spending bill, would benefit Detroit’s three major automakers: General Motors ( GM.N), Ford Motor Co (FN) and Stellantis. NV (STLA.MI), the parent company of Chrysler, who assemble their vehicles manufactured in the United States in plants represented by UAW. Read more

The proposal raises the maximum tax credit for these electric vehicles to $ 12,500 (including a $ 500 credit for the use of U.S.-made batteries) from the current $ 7,500, which remains the same for the rest. The bill also eliminates the phasing out of tax credits after carmakers reached 200,000 electric vehicles sold, which would make GM eligible again, along with Tesla Inc (TSLA.O), though Tesla would not receive the highest credit.

Tesla and foreign carmakers operating in the United States have no unions representing assembly workers and many have fought UAW efforts to organize American plants.

Tesla chief executive Elon Musk said on Sunday on Twitter that electric vehicle incentives were “written by Ford / UAW lobbyists as they manufacture their electric car in Mexico. It’s not obvious how this serves northern taxpayers.” -americans “.

Ford is building its electric Mach-E Mustang in Mexico, although these vehicles could not get the biggest tax credit.

Asked to respond, Ford spokesman Mark Truby said Ford will build its EV F-150 Lightning in Michigan and the E-Transit electric van in Kansas City “with much more to come.”

The UAW did not comment on Musk’s tweet, but noted that most auto workers worldwide had union representation.

“American tax money should pay for the products here and American workers deserve the same voice as all other auto workers in the world,” he said on his website.

Honda Motor (7267.T), which has car plants in Alabama, Indiana and Ohio, said the EV incentive “discriminates between electric vehicles manufactured by American automobile workers based simply on whether they belong to a union “.

Toyota does not currently manufacture any complete vehicles in the United States, but plans to sell two new vehicles in the United States next year.

Stellantis, meanwhile, praised the plan, saying it “stimulates the market by making electrified vehicles affordable for more Americans, who in turn will support well-paid middle-class jobs.”

The bill also proposes a new tax credit for commercial vehicles, 15% for electric bicycles and a $ 2,500 credit for used electric vehicles.

Report by David Shepardson; Editing by Leslie Adler and Richard Pullin

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