Congress is considering incentives for EVs—some automakers love it others do not. The bill would offer up to $4,500 tax incentive to consumers buying electric vehicles assembled at US facilities with a union. Meanwhile the bill give consumers incentives of $7500 for all new EVs sold in the US wherever made. The incentive for foreign-made vehicles will last for five years.
The statement from Stellantis maker of Dodge RAM and Jeep with union shops:
As Stellantis continues our aggressive electrification push — highlighted by an investment of more than $35 billion through 2025 — we are pleased to see Congress match the industry’s commitment with meaningful inducements that will help consumers make the switch to electric vehicles. Consumer incentives, a significant pledge to increase public charging infrastructure, and support for U.S. R&D and manufacturing, are critical steps to create a robust EV ecosystem. The House Ways & Means Committee’s proposed incentives will spur the market by making electrified vehicles affordable for more Americans, which in turn will support well-paying, middle-class jobs in the nation’s largest manufacturing sector.
Honda that manufactures in non-union factories stated this
“Honda is disappointed that the House Ways and Means Committee has proposed to expand the EV consumer tax incentive in an unfair manner that discriminates among EVs made by hard-working American auto workers based simply on whether they belong to a union. Honda is committed to vehicle electrification to meet our climate objectives and recently announced an ambitious vision to make battery-electric and fuel cell electric vehicles represent 100% of our vehicle sales by 2040. The Honda production associates in Alabama, Georgia, Indiana and Ohio who will build our EVs deserve fair and equal treatment by Congress.
Federal, state and local government policies supporting vehicle electrification are essential to meeting the challenging goals facing our industry, including policies to establish EV charging infrastructure, and incentives to invest in manufacturing technologies and to encourage consumers to purchase electric vehicles. If Congress is serious about addressing the climate crisis, as well as its goal to see these vehicles built in America, it should treat all EVs made by U.S. auto workers fairly and equally. We urge Congress to remove discriminatory language tying unionization to incentives from its budget reconciliation proposal.”
Non unionized Tesla owner Elon Musk tweeted:
“This is written by Ford/UAW lobbyists, as they make their electric car in Mexico. Not obvious how this serves American taxpayers.”
“Our common goal is straightforward: reduce the amount of carbon that autos release into the atmosphere by putting more electric vehicles (EVs) on the road. While the EV tax proposal before you makes strides toward that goal, it includes provisions that will discriminate against nearly half the autoworkers in the country and puts the environment second to unrelated agendas.”