Automobiles
Tesla, Toyota Team up vs Ford, UAW Over Dems’ EV Tax Breaks
Ford Motor Co and the United Auto Workers (UAW) are butting heads against Toyota Motor Corp and Tesla over tax breaks. House Democrats are proposing a $4,500 tax incentive for electric vehicles made in the USA and built by union workers. Ford and the UAW are very much for it, while Toyota and Tesla are not.
RELATED: Electric Vehicles To Hit 66% Of All Car Sales by 2040
‘Exorbitant Tax Breaks’
As a result, Toyota sent a strongly-worded letter to Congress last Monday. It said that the proposal discriminates against non-union American auto workers. They also blasted the idea of Congress providing: exorbitant tax breaks” to rich buyers of expensive cars and trucks.
The House Ways and Means Committee is set to take up the proposed EV tax break on Tuesday. It’s part of the proposed $3.5 trillion spending bill proposed by President Joe Biden.
The plan benefits America’s Big Three manufacturers: Ford, General Motors, and Chrysler. The companies hire union workers and have UAW representation in all their plants.
The bill also proposes a new EV tax credit for commercial vehicles. It will also award a $2,500 credit for used EVs and a 15% credit for electric bicycles.
Tax Credit Increases From $7,500 to $12,500
Specifically, the proposal boosts the maximum tax credit for these electric vehicles from $7,500 to $12,500. It will now include a $500 credit for using locally-made batteries. The bill will also remove the 200,000 units sold ceiling for tax credit eligibility.
Both GM and Tesla will qualify for the tax breaks if this measure gets approval. However, Tesla will not benefit from the higher credit.
However, Toyota, Tesla, and other foreign automakers operating in the United States oppose the bill. They do not have union representation among their assembly line workers. Historically, both companies fought UAW efforts to bring unions to their plants.
Ford Will Build More EVs in the States
Tesla’s opposition, as voiced by CEO Elon Musk on Twitter, said that Ford/UAW lobbyists virtually wrote the EV incentives. He noted that Ford makes their electric cars in Mexico. “Not obvious how this serves American taxpayers,” he noted.
However, Ford spokesperson Mark Truby said that while Ford does make its Mustang Mach-E in Mexico, these vehicles do not qualify for the new tax credits.
In addition, he said that Ford will build its F-150 Lightning EV in Michigan. Ford will also build its all-electric E-Transit van in Kansas City. Other electric vehicles will come into local production soon.
Meanwhile, the UAW did not comment on Musk's tweet. Officials noted that most auto workers worldwide have union representation. “American tax money should pay for products here and American workers deserve the same voice as every other autoworker in the world,” the UAW said on its website.
Stellantis, the company that owns the Chrysler brand, supported the House proposal. It said that the tax breaks will “spur the market by making electrified vehicles affordable for more Americans, which in turn will support well-paying, middle-class jobs.”
Honda Sides WithToyota and Tesla
Honda Motor, which joined Tesla and Toyota, has auto plants in Alabama, Indiana, and Ohio. The EV incentive “discriminates among EVs made by hard-working American auto workers based simply on whether they belong to a union,” it said.
Meanwhile, Toyota has no full EVs assembled in the United States. The company does have plans to sell two new EV models in the United States beginning next year.
Watch the Torque News video reporting about Tesla CEO Elon Musk’s anger at proposed EV tax breaks:
Loading ...Do you agree with providing additional tax breaks for electric vehicles made by companies that hire union workers? Will this make you buy an electric vehicle from Ford, GM, or Chrysler instead of Toyota, Tesla, or Honda?
Let us know what you think. Share your thoughts below.
18 Comments
Yes I Do
An EV battery sighs almost a ton. It requires 200 plus tons of mined ore including Co and Li to produce. These come from places like Sub Saharan Africa and the process is water intensive and used child and quasi slave labour. It’s only after a few years of use that the EV “carbon footprint” is less than that of an efficient internal combustion engine. No EV for me, thanks!
From cradle to grave, electric vehicles are NOT “more green”, people! Get your heads out your arses.
The environmental footprint for the rare earth mineral extraction needed to build batteries in 3rd world countries is a disaster. When will this farce be exposed?
In agreement with Jos,Willie and Mike. Now take a look at how the carbon footprint becomes more greatly expanded: what’s the life of an electric vehicle battery? Where will it be then be tossed and what will be its environmental hazard? Folks we’re being sold a bill of goods on a political policy (green new deal) that has had little forethought to long term affects.
Built in America, buy American. If you don’t buy American, pay more not less.
No, if you can afford to buy an electric vehicle you don’t need any tax break to buy it. Plus they are of little use to most people living outside the big cities. No charging stations for them, and they don’t go far enough between charging. Also take to long for a complete charge,
I do not have the money or good credit to purchase an electric car and many people like me cannot afford it.
I agree with Max. There hasn’t been enough thought put into the environment. I will not buy an EV. I think any tax break is great, but not at the health of the people. God touch our leaders.
Absolutely. We have 2 nations in USA. Conservatives and “Other”. When the Dems are in control they have the right to build their nation. The remedy is to divide the land mass in two: A Conservative and “Other”. Withing 10 years the “Other” will die off from suicide spending and the Conservative will be able to accumulate individual wealth once again.
NO TAX BREAKS! If they can’t be made affordable to everyone then keep the government out. I don’t have to have a new vehicle and should not have to pay for someone else’s desires period. If you want one pay for it yourselves. What are you doing with the scrap batteries. No recycling method in place, until you can don’t force them on people whose lifestyle can’t use them.
i am ANTI Union,No laborer is worth 50.00 $$ hr.,Prevailing wage is Destroying this country of OURS, TRUMP WILL BE ELECTED in 2024,WE WILL rid this country of ALL UN AMERICAN Democrats and Republicans,ONLY DONALD TRUMP CAN save OUR COUNTRY NOW !!!!! Electric Cars SUCK,like MOST Democrats ( all POLITICIANS )
No there should be no tax breaks. That’s plain old discrimination. EV cars are not, probably will never be environmentally safe. It still takes fossil fuels to power the charging stations. And yes… how are the spent batteries going to be disposed of? None of those dumacrats have said anything!
Tax breaks for companies using Union workers amounts to extortion for us lowly taxpaying peasants. There is virtually no difference between a Union worker and a non-Union worker doing the same job except for the money that changes hands. Why should it cost twice as much to hire a Union worker over a Right to Work worker? Free markets work best without government (including union)interference.
In fact, according to scientists, the emissions may be between 15% and 68% greater when manufacturing an electric vehicle!
It amazes me that how us….the general public’s concensus here…. expresses pretty much unanimously, the common sense and details that the politicians can’t seem to grasp. NO TAX CREDIT.
Where is your daddy trump I was told by fox and many RetrumplicanQs that he was going to be reinstated several days ago. This proves he and every one of his followers are blind liars and would believe anything their daddy trump says.
The democrats spending spree needs support in the form of additional taxes. Any increased taxes on corporations raise the price of the product to the consumer. Who really is paying the taxes? This tax incentive to Unionized companies is vote buying. Plain and simple. I was a union member, I support unions. I do not support buying their votes.