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Saturday, January 28, 2023

Tesla, Toyota, Ford, and the U.S. Auto Workers’ Union debate the electric vehicle tax bill

Washington – Toyota Motor Corporation and Tesla clashed with Ford Motor Company and the American Union of Auto Workers (UAW) over a proposal made by the Democrats in the U.S. House of Representatives to provide an additional 4,500 for union-made electric vehicles made in the United States. Tax incentives for US dollars.

Toyota stated in a letter to Congress that the plan discriminates against nearly half of American auto workers who are not part of a union, and called on lawmakers to refuse to provide “excessive tax breaks” to wealthy buyers of high-priced cars and trucks.

The bill is scheduled to be reviewed by the House Ways and Means Committee on Tuesday as part of a proposed 3.5 trillion dollar spending bill that will benefit Detroit’s three major automakers-General Motors, Ford Motor Company and Chrysler’s parent company Stellatis NV. Assemble their American-made cars at the factory represented by UAW.

Photo of the sign file outside the Tesla store in Cherry Creek Mall in Denver. (Photo by David Zarubovsky/Associated Press)

The proposal increases the maximum tax credit for these electric vehicles from the current US$7,500 to US$12,500 (including the US$500 credit for using batteries made in the United States), and all other vehicles remain unchanged. The bill also abolished the phasing out of tax credits after automakers sold 200,000 electric vehicles, which would make General Motors and Tesla eligible again, although Tesla would not receive higher credits.

Tesla and foreign automakers operating in the United States do not have a union representing assembly workers, and many people oppose the efforts of the U.S. auto workers’ union to organize American factories.

Tesla CEO Elon Musk said on Twitter on Sunday that the electric car incentives were “written by Ford/U.S. Auto Workers Union lobbyists because they produce electric cars in Mexico. It is not clear how this will pay taxes in the United States.” People serve.”

Ford produces its electric Mustang Mach-E in Mexico, although these vehicles do not qualify for the larger tax credit.

When asked to respond, Ford spokesperson Mark Truby said that Ford will produce its EV F-150 Lightning in Michigan and an all-electric E-Transit van in Kansas City. “There will be more in the future. “.

Ford
On October 4, 2018, when the new Ford Aspire was launched in New Delhi, India, a visitor was taking pictures of him. (Anushree Fadnavis/Reuters)

The UAW did not comment on Musk’s tweet, but pointed out that most auto workers in the world have union representatives.

It said on its website: “U.S. taxes should pay for the products here, and American workers should have the same voice as all other auto workers in the world.”

Honda Motor Co., which has auto factories in Alabama, Indiana, and Ohio, said that electric vehicle incentives “only distinguish between electric vehicles produced by hard-working American auto workers based on whether they belong to a union.”

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

At the same time, Stellatis praised the plan, stating that it “stimulates the market by making electric vehicles more affordable for Americans, which in turn will support high-paying middle-class jobs.”

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

David Shepson

Reuters

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This News Originally From – The Epoch Times

World Nation News Desk
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