Foreign automakers ask U.S. House Democrats to reject union EV tax credit (updated)
01/10/2021 24:31
(Adds UAW comment, more details)
By David Shepardson
WASHINGTON, Sept 30 (Reuters) - A group of 12 major foreign
automakers, including Toyota Motor Corp 7203.T , Volkswagen AG
VOWG_p.DE , Hyundai Motor Co 005380.KS and Nissan Motor Co
7201.T , urged U.S. House of Representatives Democrats to
reject a proposed $4,500 tax incentive for U.S-made electric
vehicles by union workers.
A House panel this month approved legislation to boost EV
credits to up to $12,500 per vehicle, including $4,500 for
union-made vehicles and $500 for U.S.-made batteries.
The foreign automakers U.S. units in a letter sent to House
Speaker Nancy Pelosi and other Democrats on Thursday, said the
proposal "would unfairly disadvantage American workers who have
chosen not to join a union and produce more than half of all
vehicles in the United States and the vast majority of
American-made EVs."
Others signatories include Honda 7267.T , BMW BMWG.DE ,
Kia 000270.KS , Mazda 7261.T , Daimer AG's Mercedes-Benz
DAIGn.DE , Subaru 7270.T and Volvo Cars which is owned by
Geely 0175.HK .
United Auto Workers (UAW) President Ray Curry said Thursday
by ensuring "taxpayer funding goes to domestic auto and battery
assembly, and to make sure that these jobs are good paying union
scale jobs we protect our future."
Curry added "these jobs of the future that replace
traditional engine jobs need to provide the same middle class
wages and benefits that built our modern economy."
The tax credits, which are part of proposed $3.5 trillion
spending bill, would cost $15.6 billion over 10 years and
disproportionately benefit Detroit's Big Three automakers -
General Motors GM.N , Ford Motor Co F.N and Stellantis NV
STLA.MI , the parent of Chrysler - which assemble their
U.S.-made vehicles in UAW-represented plants.
The EV proposal also does away with phasing out tax credits
after automakers hit 200,000 electric vehicles sold, which would
make GM eligible again, along with Tesla Inc TSLA.O , although
Tesla would not receive the $4,500 credit.
Tesla and foreign automakers do not have unions representing
assembly workers in the United States and many have fought UAW
efforts to organize U.S. plants.
Tesla Chief Executive Elon Musk suggested on Twitter this
month the EV proposal was "written by Ford/UAW lobbyists... Not
obvious how this serves American taxpayers."
(Reporting by David Shepardson; Editing by Leslie Adler)
((David.Shepardson@thomsonreuters.com; 2028988324;))