Honda, Toyota slam Democrats’ proposed tax credit for union-made electric vehicles

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Honda and Toyota are critical of a new proposal by Democratic lawmakers to expand tax credits for electric vehicles, saying it discriminates against unorganized auto workers, Reuters reported. Under the proposal, electric vehicles manufactured by US unions would qualify for a tax credit of $ 12,500 per vehicle, while maintaining a credit for most other electric vehicles at $ 7,500. The proposal would significantly favor the Big Three US automakers GM, Ford and Fiat Chrysler over non-union companies such as Tesla and Japanese automakers, both of which have factories in the United States.

US Representative Dan Kildee (D-Michigan) told Reuters we want to encourage this. It puts American manufacturers first, that’s where we want them, and it cuts emissions faster than any other policy we could put in place. President Biden has said he wants electric vehicles to account for at least 50% of vehicle sales in the United States by 2030.

Honda said in a statement that the bill was unfair and discriminates against electric vehicles made by hard-working American auto workers based simply on their union membership. The company noted that Honda has factories in Alabama, Indiana and Ohio that manufacture electric vehicles, and said those workers deserve fair and equal treatment from Congress.

Toyota told Reuters the bill as drafted discriminates against U.S. auto workers over their choice not to unionize, and added that it plans to fight to concentrate the money. taxpayers on making all electrified vehicles available to American consumers who cannot afford expensive cars and trucks.

The proposal is slated for a vote before the House Ways and Means Committee on Tuesday, as part of a $ 3.5 trillion spending bill. He risks encountering opposition in the Senate.

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