A group of foreign automakers have signed a letter urging the U.S. House of Representatives Democrats to reject a proposed EV tax credit for union-made vehicles, saying the move would “unfairly disadvantage American workers who have chosen not to join a union.”
The proposed EV tax credit includes a $7,500 rebate on all EVs, along with an additional $4,500 for EVs assembled in union facilities and another $500 for EVs with an American-made battery. The letter, which was delivered to House Democrats Thursday, says the tax credit would be a disadvantage for U.S. workers at non-unionized factories and notes the “vast majority” of U.S.-made EVs are not built in union facilities. Signatories of the letter include Volkswagen, Toyota, Hyundai, Nissan, Kia, Mercedes-Benz, Mazda, Subaru and Volvo.
Six Democratic lawmakers hit back at the letter on Thursday, Reuters reports, writing a letter to House Speaker Nancy Pelosi suggesting she retain the $4,500 credit.
“Every foreign-owned automotive manufacturer employs a union workforce in their home country, but those same companies consistently choose to invest in right-to-work states that are hostile to collective bargaining agreements,” the letter said, as quoted by Reuters.
UAW president Ray Curry released a statement addressing the proposed bill Thursday, urging House Democrats to ensure taxpayer funding “goes to domestic auto and battery assembly, and to make sure that these jobs are good paying union scale jobs.”
This is written by Ford/UAW lobbyists, as they make their electric car in Mexico. Not obvious how this serves American taxpayers. https://t.co/FUUXARHlby
— Elon Musk (@elonmusk) September 12, 2021
Tesla CEO Elon Musk previously hit out at the proposed EV tax credit on Twitter, saying it was “written by Ford/UAW lobbyists, as they make their electric car in Mexico.” Tesla plants are not unionized and its vehicles would therefore not qualify for the additional $4,500 tax credit. The company currently has a production plant in Fremont, California and a battery plant in Storey County, Nevada, which together employ roughly 17,000 people.