Tesla, Toyota clash with Ford, UAW over electric vehicle tax bill

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WASHINGTON, Sept. 13 (Reuters) – Toyota Motor Corp and Tesla clashed with Ford Motor Co (FN) and the United Auto Workers (UAW) over a Democrats’ proposal in the United States House to give electric vehicles manufactured in the United States by unions an additional tax incentive of $ 4,500.

In a letter to Congress, Toyota (7203.T) said the plan discriminates against nearly half of non-union American auto workers and called on lawmakers to refuse to give “reliefs” exorbitant taxes’ to wealthy buyers of high-priced cars and trucks.

The bill, due for consideration by the House Ways and Means Committee on Tuesday as part of a $ 3.5 trillion spending bill, would benefit Detroit’s Big Three automakers – General Motors ( GM.N), Ford Motor Co (FN) and Stellantis NV (STLA.MI), the parent company of Chrysler – which assembles its vehicles made in the United States at factories represented by the UAW. Read more

The proposal raises the maximum tax credit for these electric vehicles to $ 12,500 – including a $ 500 credit for the use of US-made batteries – from the current $ 7,500, which remains the same for all others. The bill also phased out tax credits after automakers sold 200,000 electric vehicles, which would make GM again eligible, along with Tesla Inc (TSLA.O), although Tesla does not receive the credit. The highest.

Tesla and foreign automakers operating in the United States do not have unions representing assembly workers, and many have fought the UAW’s efforts to organize American factories.

Tesla chief executive Elon Musk said on Twitter on Sunday that the electric vehicle incentives were “written by Ford / UAW lobbyists, while they were building their electric car in Mexico. It is not clear how it is used. American taxpayers “.

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

When asked to respond, Ford spokesman Mark Truby said Ford will build its EV F-150 Lightning in Michigan and its all-electric E-Transit van in Kansas City “with a lot more to come.” “.

The UAW did not comment on Musk’s tweet, but noted that most autoworkers around the world are represented by unions.

“American tax money should pay for the products here and American workers deserve the same voice as all other auto workers in the world,” he said on his website.

Honda Motor (7267.T), which has auto plants in Alabama, Indiana and Ohio, said the electric vehicle incentive “discriminates against electric vehicles made by hard-working American auto workers simply by according to their membership in a trade union “.

Toyota currently does not build a full EV in the United States, but plans to sell two new EVs in the United States next year.

Stellantis, meanwhile, praised the plan, saying it “stimulates the market by making electrified vehicles affordable for more Americans, which in turn will support well-paying middle-class jobs.”

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

Reporting by David Shepardson; Editing by Leslie Adler and Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.


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