Honda and Toyota criticize the tax credit proposed by Democrats for electric vehicles made in the Union

EV smart charging
Electric car connected to charging station. The new proposal would increase the tax credit for U.S.-made electric cars.
Honda and Toyota criticize a new proposal by democratic lawmakers to extend tax credits for electric vehicles, saying it discriminates against non-union car workers, Reuters reports. Under the proposal, Electric Vehicles manufactured by the U.S. Trade Union would be eligible for a $ 12,500 tax credit per vehicle, while most other electric cars would be eligible for a $ 7,500 credit. The proposal would significantly favor the three major US carmakers GM, Ford and Fiat Chrysler over non-EU dealers such as Tesla and Japanese carmakers, both of which have plants in the United States.

U.S. Representative Dan Kildee (D-Michigan) told Reuters: “We want to encourage this. It will put American manufacturers in the lead where we want them, and it will reduce emissions faster than any other policy we could implement.” President Biden has said he wants Electric Vehicles represent at least 50 percent of U.S. vehicle sales by 2030.

Honda said in a statement that the bill was unfair and that it “discriminates against the electric cars of hard-working American car workers based on whether they belong to a union.” The company noted that Honda has factories in Alabama, Indiana and Ohio that build electric cars, and said these workers “deserve fair and equitable treatment in Congress.”

Toyota told Reuters that the written proposal discriminates against “American colleagues of their choice not to ally,” adding that it intends to “fight to focus taxpayers’ money on making all electrified vehicles available to American consumers who cannot afford high-priced cars and trucks.”

The proposal is scheduled to be voted on in the House Ways and Means committee on Tuesday as part of a proposed $ 3.5 trillion bill. It will likely have to oppose the Senate.