Japanese carmakers Honda and Toyota have criticized a proposal that would give an additional $ 4,500 in tax credits to Union-made electric vehicles in the United States, Reuters. reported.
Most electric vehicles would be given a $ 7,500 tax credit, though that bonus would increase to $ 12,500 per car if the cars were manufactured by the union under the Democratic proposal.
The incentive was introduced on Friday as part of the $ 3.5 trillion conciliation spending package. In 2030, President Biden
Joe Biden The FBI releases the first document of 9/11 after Biden’s executive ordered the transfer of Afghan pilots to the U.S. base after fleeing to Uzbekistan: WSJ’s NATO chief says l alliance signed the withdrawal of the United States from Afghanistan MORE expects electric vehicles to account for at least half of the country’s car sales, seconds and Reuters.
The incentive favors Ford Motor Company, the parent company of Chrysler, Stellantis NV and General Motors, as all three companies have union workers who assemble their vehicles. Still, this puts some U.S. companies like Tesla and foreign carmakers doing business in the U.S. at a disadvantage.
Honda said in a statement that it “discriminates between electric vehicles manufactured by American auto workers workers based simply on whether they belong to a union,” according to Reuters.
“Honda’s production partners in Alabama, Indiana and Ohio who will build our electric vehicles deserve fair and equal treatment by Congress,” Honda added.
In a statement to The Hill, Toyota claimed the bill was “contrary to the carbon reduction target” and also argued that the measure was discriminatory.
“The proposal to provide a $ 4,500 incentive exclusively for union-made electric vehicles runs counter to the carbon reduction target. The current draft of the Forms and Means Committee makes the goal of accelerating deployment of electrified vehicles is secondary to discrimination against American auto workers based on their choice not to unionize, ”Toyota said.
“Toyota will stand firm against proposals that put one American auto worker at a disadvantage over another,” he added.
According to Reuters, the House Roads and Media Committee will vote on the proposal on Tuesday.
Rep. Dan Kildee
Daniel (Dan) Timothy Kildee Key Panel Democrats Offer Bill on Solar Tax Incentive Overnight Energy: Manchin Haaland Grills for Biden Oil and Gas Review | The Biden administrator points to 40% of drivers using electric vehicles by 2030 | Lack of DOD action may have caused “preventable” PFAS risks Balance / Sustainability – Presented by NextEra Energy: Cockatoo’s Key to Cooperation for Suburban Survival MORE (D-Mich.), Who is part of the committee, said, “We want to make sure that people who get good wages, support their families, and bring those wages and benefits to their community are the main beneficiaries.” according to Detroit News.
The Hill has contacted the Honda and Kildee office for comment.