Toyota and Honda reject US house electric vehicle tax plan

WASHINGTON, Sept. 11 (Reuters) – Toyota Motor Corp (7203.T) and Honda Motor Co (7267.T) on Saturday sharply criticized a proposal by Democrats in the US House of Representatives to offer union-made electric vehicles an additional tax incentive in the amount of $ 4,500.

Toyota said in a statement that the plan, unveiled late Friday, “discriminates against American auto workers for their choice not to unionize.”

The bill, due to be voted on Tuesday by the Democrat-led House Ways and Means Committee as part of a proposed $ 3.5 trillion spending bill, would benefit Detroit’s big three automakers who have unionized auto plants. Continue reading

In a statement, Honda called the bill “unfair” and said it discriminated against electric vehicles made by hard-working American auto workers simply on whether or not they were unionized. … Honda production workers in Alabama, Indiana and Ohio who will build our electric vehicles deserve fair and equal treatment by Congress. “

The proposal, valued at $ 33 billion to $ 34 billion over 10 years, would increase the maximum electric vehicle tax credit from the current $ 7,500 to up to $ 12,500. The $ 12,500 figure includes $ 500 in credit for use on US-made batteries.

The proposal is an important part of Democratic President Joe Biden’s goal of ensuring that electric vehicles account for at least 50% of US vehicle sales by 2030 and that jobs in American unions are strengthened.

However, the bill does away with the abolition of automakers’ tax credits after they hit 200,000 electric vehicles sold, which would re-qualify General Motors Co (GM.N) and Tesla Inc (TSLA.O). It would also create a new smaller credit for used electric vehicles of up to $ 2,500.

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

In contrast, foreign automakers operating in the United States, like Tesla, do not have unions representing assembly workers, and many of them have opposed the UAW’s efforts to organize US plants.

Tesla would be eligible for up to $ 8,000 in credits under the bill.

UAW President Ray Curry said the tax credit would “go a long way in supporting high-paying union jobs in (the) EV automotive sector that President Biden has advocated.”

The bill limits EV credits to cars priced no more than $ 55,000, while trucks could cost up to $ 74,000.

Toyota added it will “fight to focus tax dollars on making all electrified vehicles accessible to American consumers who cannot afford high-priced cars and trucks.”

Reporting by David Shepardson; Adaptation by Jonathan Oatis

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