WASHINGTON: A Democratic spending proposal of $1.75 trillion could give electric vehicles a big boost, especially to Detroit’s Big Three automakers and the US Postal Service, but it is facing opposition from Republicans, foreign automakers, Canada and Mexico. Is.
The House plan increases the electric vehicle credit to $12,500 per vehicle, which includes $4,500 for union-manufactured vehicles and $500 for US-made batteries. Vehicles must be manufactured in the United States by 2027 to qualify for any credit.
The EV tax credit would cost $15.6 billion over 10 years and would disproportionately benefit Detroit’s Big Three automakers — General Motors, Ford Motor and Chrysler-parent Stelantis NV — that sell their U.S.-made vehicles at union-represented plants. collect the.
United Auto Workers (UAW) president Ray Curry said the provision would “create and protect thousands of jobs for UAW members” and “would be a win-win for auto manufacturing workers.”
“The framework announced today supports well-paying union jobs and benefits our country for decades to come,” he said.
However, foreign automakers have strongly criticized the decision to give a bigger leg up to union-built vehicles. A dozen foreign automakers on Friday urged two US senators from California to oppose it, saying it was an injustice to the state’s workers.
The Mexican government criticized the US proposal, according to a letter released on Friday in which Economy Minister Tatiana Clothier expressed “strong concern” over the provisions, saying it was contrary to “agreed on regional price material rules” in the United States. . Mexico-Canada Agreement (USMCA) trade agreement.
Last week, Canada said the tax credit proposal https://www.reuters.com/world/americas/canada-criticizes-proposed-us-ev-tax-credit-says-could-harm-auto-sector-2021- 10-22 could hurt the North American auto industry and run away from trade agreements.
opposition puck
On Wednesday, the governors of 11 states, including Texas, Florida and Arizona, said they opposed the tax credit, arguing it would create a “discriminatory environment” in our states by punishing autoworkers and car companies because workers at their plants unionized. did not choose “
Tesla and foreign automakers do not have unions representing assembly workers in the United States and many have contested UAV efforts to organize US plants.
“This tax credit plan will pit Americans working for three ‘legacy’ companies against American workers from other automakers,” Honda said in a letter Friday.
The bill would award $6 billion to purchase electric delivery vehicles and infrastructure for the US Postal Service. The USPS said Friday that it estimates under the bill “all delivery fleet acquisitions could potentially be electric by 2028, and a corresponding 70% of our entire delivery fleet” by 2030.
In February, the USPS awarded a 10-year contract to Oshkosh Defense, a subsidiary of Oshkosh, to manufacture a mix of internal combustion and EV delivery vehicles that could be worth $6 billion.
The EV proposal phases out tax credits that would qualify Tesla as well as GM after automakers hit 200,000 electric vehicles sold.
Energy Secretary Jennifer Granholm defended the decision to take Tesla out of high credit, telling CNBC: “We want to make sure that we do everything possible to encourage the business and labor that are really important to everyday Americans.” Let’s focus on raising the standards.”
Earlier this month, more than 100 House lawmakers signed a letter urging Speaker Nancy Pelosi to roll back the tax credits.
The bill would create a new electric bike and three-wheeler tax credit, a 30% credit for commercial electric vehicles, and an EV tax credit of $4,000.
It will authorize $3.5 billion for “domestic manufacturing conversion” grants for electric and other green vehicles and to expand existing auto plants to build more fuel efficient models and to cover zero-emissions trains, airplanes The US will provide $3 billion to boost the loan program. , boats and hyperloop technology.
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