According to Reuters, Honda and Toyota are criticising a new Democratic proposal to expand tax credits for electric vehicles, claiming that it discriminates against non-union auto workers. According to the proposal, US union-made electric vehicles would be eligible for a $12,500 tax credit, while most other EVs would receive a $7,500 credit. The proposal would heavily favour the Big Three US automakers, GM, Ford, and Fiat Chrysler, over non-union firms like Tesla and Japanese automakers, both of which have plants in the United States.
“We want to incentivize this,” US Representative Dan Kildee (D-Michigan) told Reuters. It puts American manufacturers in the lead, which is exactly what we want, and it reduces emissions more quickly than any other policy we could implement.” President Biden has stated that by 2030, electric vehicles should account for at least 50% of all vehicle sales in the United States.
The bill is unfair, according to Honda, because it “discriminates among EVs made by hard-working American auto workers based simply on whether or not they belong to a union.” Honda has electric vehicle manufacturing plants in Alabama, Indiana, and Ohio, and the company claims that those workers “deserve fair and equal treatment by Congress.”
According to Reuters, Toyota believes the bill discriminates “against American autoworkers based on their choice not to unionise,” and that it will “fight to focus taxpayer dollars on making all electrified vehicles accessible for American consumers who can’t afford high-priced cars and trucks.”
On Tuesday, the House Ways and Means committee will vote on the proposal, which is part of a proposed $3.5 trillion spending bill. It will almost certainly face opposition in the Senate.