According to media reports, Toyota and Honda strongly criticized a proposal made by the Democrats in the US House of Representatives to give another US$4,500 in tax incentives to electric vehicles produced by the US labor union. According to the proposal, electric vehicles manufactured by the American union will be eligible for a tax deduction of $12,500 per vehicle, while the deduction for most other electric vehicles will remain at $7,500.
Toyota said in a statement that the plan “discriminates American auto workers who choose not to join the union.”
The proposal will greatly benefit the three major U.S. automakers-General Motors, Ford and Fiat Chrysler, while foreign automakers and Tesla operating in the U.S. have no unions that organize workers and can only be excluded from the policy. According to the bill, Tesla is eligible for a tax credit of $8,000.
The bill, as part of the proposed 3.5 trillion dollar spending bill, will be voted on on Tuesday.
Honda said in a statement that the bill was “unfair” and stated that it “discriminates electric cars produced by hard-working American auto workers based solely on the condition of being a union member.” Honda said that the company has electric car plants in Alabama, Indiana and Ohio, and’they should be treated fairly and equally by Congress’.
The proposal is a key part of the US President Biden’s proposed plan. The goal is to ensure that electric vehicles account for at least 50% of US car sales by 2030 and promote employment in US labor unions. The proposal is expected to cost between 33 billion and 34 billion US dollars within 10 years.
However, the bill does not abolish other tax credit policies for automakers. Because after the sales of electric vehicles reach 200,000, General Motors and Tesla will once again receive tax credits.
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