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Toyota, Honda criticize the new EV incentive program proposal in the US

As the incentive program was revised and the new proposal increased the tax credit to $12,500. However, there are other changes that are at disadvantage for automakers, which adds a time limitation on automakers. Toyota said in a statement that the plan discriminates “against American autoworkers based on their choice not to unionize.” Furthermore, Honda stated that the new bill is “unfair”. Then added that it “discriminated among EVs made by hard-working American autoworkers based simply on whether they belong to a union.”

Electric vehicle infrastructure gets $15 billion in new US bipartisan  proposal, new EV rebate to come later - Electrek

Image credits- Electrek

Honda further adds, ” The Honda production associates in Alabama, Indiana, and Ohio who will build our EVs deserve fair and equal treatment by congress.” The bill is to be voted and finalized by Tuesday by the democrats, but it is already known that the White House is already in favor of the proposal. The democrats are also known to be in favor of this proposal being part of the $3.5 trillion spending bill. It would benefit the three major automakers in the US who have auto plants that are union-represented.

Additionally, the proposal is estimated to be increased than planned, making it a $34 billion fund, compared to the earlier $33 billion over 10 years. The $12,500 tax credit increase includes a $500 credit for including the batteries produced within the country.

50% EV sales by 2030

The three major automakers who were invited in the EV event by White House in August. Incidentally, the newly proposed incentive plan shows benificial move for the these three companies. General Motors, Stellantis and Ford have plants which are represented by the united Auto Workers(UAW) union.

Many automakers do not have assembly workers from the UAW in their US plants. Including Tesla, all the other auto manufacturing assembly workers will not be benifited like the ones in the unions. Under the bil, Tesla is eligible for credits of $8,000.

UAW president Ray Curry said that the tax credit provision “woould go a long way in supporting-good paying union jobs in (the) EV secotr that president Biden has championed.” Furthermore, the bill also has limit on the price of the EV to be not more than $55,000, and for electric trucks it is $74,000.

Toyota said that it will “foght to focus tapayer dollars on making all electrified vehicles accessible for American consumers who can’t afford high-priced cars and trucks.”

While certain limitations may seem to benifit the industry as a whole, the new changes are strongly being opposed by automakers. General Motors and Tesla would have their own disadvantages in the market once this bill is passed. Where Tesla will loose around $4,500 for each vehicle. Even before the auto industry started pushing for their electric vehicle goals, Tesla has been promoting electric vehicle as part of sustainable transportation.

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