FILE PHOTO: A man passes in front of a Toyota logo at the Tokyo Motor Show in Tokyo, Japan, on October 24, 2019. REUTERS / Edgar Su / File Photo
September 12, 2021
By David Shepardson
WASHINGTON (Reuters) – Toyota Motor Corp. and Honda Motor Co. on Saturday harshly criticized a Democrat proposal in the U.S. House of Representatives to give union-made electric vehicles in the United States an additional $ 4,500 tax incentive.
Toyota said in a statement that the plan unveiled Friday afternoon discriminates “against American auto workers based on their choice not to unionize.”
The bill, which is due to be voted on by the House-led House and Media Committee on Tuesday as part of a $ 3.5 trillion spending bill, would benefit the three major manufacturers of Detroit cars, which have car plants represented by the Union.
In a statement, Honda called the bill “unfair” and said it “discriminates between electric vehicles made by American auto workers workers based simply on whether they belong to a union …. Honda production in Alabama, Indiana and Ohio that will build our electric vehicles deserve fair and equal treatment by Congress. “
The proposal, which is estimated to cost between $ 33 billion and $ 34 billion over ten years, would increase the maximum tax credit for electric vehicles to $ 12,500 from the current $ 7,500. The $ 12,500 figure includes a $ 500 credit for the use of batteries produced in the United States.
The proposal is a key part of Democratic President Joe Biden’s goal of ensuring that electric vehicles account for at least 50 percent of U.S. vehicle sales by 2030 and boosting U.S. union jobs.
The bill, however, eliminates the phasing out of car manufacturers’ tax credits after they reach the 200,000 electric vehicles sold, which would make General Motors Co. and Tesla Inc. eligible again. It would also create a new smaller credit for used electric vehicles of up to $ 2,500.
GM, Ford Motor Co. and Stellantis NV, the mother of Chrysler, assemble their U.S.-made vehicles on plants represented by the United Auto Workers (UAW) union.
In contrast, foreign carmakers operating in the United States, as well as Tesla, have no unions representing assembly workers, and many of them have fought against the UAW’s efforts to organize American plants.
Tesla would be eligible to get up to $ 8,000 in credit depending on the bill.
UAW President Ray Curry said the provision of tax credit “would go a long way in supporting well-paid union work in the EV (sector) automobile that President Biden has championed.”
The bill limits electric vehicle credit to cars priced at no more than $ 55,000, while trucks could reach $ 74,000.
Toyota added that it will “fight to focus taxpayer dollars on making all electrified vehicles accessible to American consumers who cannot afford cars and trucks at a high price.”
(Report by David Shepardson; edited by Jonathan Oatis)