Foreign Automakers Ask U.S. House To Reject EV Tax Credit For Union-Made Vehicles
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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.
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Kill it Congress. Eff the union. They need to be competitive and not be the recipient of this favoritism.
Unions built the middle class. The loss of unions is why we have a growing disparity between rich and poor. Union declined is why wages have been stagnant for 40 years.
Unions hurting quality and productivity is a myth. In Germany EVERYTHING is union with workers paid more than in the US and they are very competitive often surpassing the US. Unions mean GM stockholders earn less & that makes me happy if it benefits working families as it does in Germany.
Unions aren’t why Ford uses interior hard plastics or has sub par quality. Unions aren’t why Chevrolet is over priced. Greed is why!! VW produces beautiful vehicles and settles for weaker margins in Europe because premium brands like Audi compensate.
Quit our corporate race to the bottom and quit celebrating when GMC hits a record average price.
Unions suck and have for decades. They were good back in the 40s and 50s but now they are worthless. They tried to unionize at a warehouse I use to work at but they got voted down by a huge margin because people finally realize how trash they really are.
Think about why Unions are worthless now. Decades of policies that intentionally stymied them by one political party in particular starting with a certain president in the 80s. (Hint, rhymes with Shmonald Shmeagan.)
Not coincidently, after that started happening, manufacturing left the US to Mexico and East Asia at a record pace and now the manufacturing industry is a shell of it’s former self.
I don’t care one bit about politics at all so you are talking to the wrong person buddy if you wanna have a political discussion. Unions suck because it’s all greedy people at the top period.
Word to Shmoe Shmiden.
“Unions built the middle class”? Unions are the primary organization of the WORKING class, not some “middle” class between capital and labor
You know Elon Musk builds ev here. Give all American built evs a tax credit. As for Ford, you build it with cheap labor no tax credit. After all it was the former twice disgraced Trump who wanted to tax American companies a special tax for building their products out of America.
It’s no secret that under Reagan that American companies decided to go overseas to make huge profits and cheat it workers.
And if you want to talk about greed don’t blame unio s. The CEOS of multiple companies get millions in raises and stocks while they screw their workers over and over.
RIP Jimmy Hoffa.
@Elon Musk
How much in state and Federal subsidies have: Tesla, SpaceX, First Solar & the Boring company gotten in the last 12 years. You of all people complaining about subsidies is laughable
@Akio Toyoda
Blue Springs MS was promised a Prius. They got a Corolla. Your low EV range hybrids are only good for clogging up HOV lanes and Charging stations. You don’t deserve a subsidy.
@Hyundai, KIA, Nissan. The rental car companies that buy most of your vehicles aren’t going to be eligible for subsidies.
@VW What happened to all the EVs you promised to build in Chattanooga TN as part of the Diesel cheat device settlement. Last news out of Tennessee was your killing the Passat.
@Mercedes Its time to kill the Sprinter Van. Fire the bone head that wants to make it electric.
@Mazda(Toyota) What the $700 million in State and local subsidies Alabama is giving you for the new plant in Huntsville isn’t enough? How do we know you won’t abandon the factory at the first sign of trouble. Like you abandon Flat Rock MI.
@Subaru a decade of sales growth in the U.S. and not 1 penny to expand factories.
@Volvo Save your money, Buying your freedom back from Geely is going to be expensive.
@Buick GM’s Assembly plants are going to fill up fast. Better reserve a few spots before you get stuck importing another vehicle from China.
What’s laughable is you even trying to make an argument about that when this company right here would not even exist today without the bailout in 08. Majority of the citizens here in the USA and the senate said no to the bailout but the president at the time signed an EO giving it to them anyways. So next time you wanna compare anything don’t use a company that should of been made to go out of business over a decade ago you just sound more foolish then usual.
John,
I remember GM stock holders losing thier @$$ while the Federal Government took ownership of their auto business.
Plain and simple. I support U.S. companies. You support the foreigners. So why are you on a website called GM Authority?
I support businesses and those businesses suffering consequences when they make mistakes. They should of been bailed out period. Please don’t ask anyone what they are doing here when you are the most racist political person here. Every chance you get you bring up politics even when it has nothing to do with the article.
John@Letting GM go bankrupt
That’s a right wing talking point, and completely stupid too. If you’re going to complain about conversations turning political, you should stop being such a right wing tool.
Again the name of this sight is GM Authority. If you don’t like GM or their vehicles you’re lost.
Lol right wing talking point? Companies should be held accountable period. And I’m glad you brought up the website name I will remind you of this next time you bring up politics which I’m sure will be today or tomorrow. Funny hearing the biggest racist left wing tool on here tel someone else they are a tool. How much do you get paid to come on here and shill for the democrat party?
Don’t waste your time talking to this pig. Just call him a racist when you see him comment so he is reminded of the trash he really is then move on. No need to have a conversation with scum like this.
Oh, I think I made the baby cry😭
I’m guessing its about the time your mommy turns off your internet, and tells you to get ready for bed.
Good night, may your dreams be filled with Corvettes, Cadillacs and other GM vehicles you’ll never be able to afford.
A racist like you can’t make me cry. I just like calling out people like you who are filled with hate for other races you have no business not only on this website but even on this planet. Funny you say something about my mom she was a good person though but I’m sure your parents were both racist bigots to that’s where you got it from isn’t it?
Malcom
Yea, if you were my kid I would probably kill myself too. Did she ever tell you who your real father is, or is that one of the secrets she took to her grave as well?
My mom didn’t kill herself but I thought you would at least be able to come up with something a little bit better then that but I guess not. It’s ok though I feel bad for your parents did they hurt there self after it came out they were racists? They shouldn’t have been bullied like that but what can you do. Hopefully your son turns out ok the shame you must bring him I feel really bad for him it’s not his fault you are the way you are. But I believe he will be the one to change in your family.
Malcom was that before or after your uncle started molesting you?
Lol that’s the best comeback you can think of? What do you say when your son tells you he is disappointed in you?
You must have real low ambitions in life if you think corvettes, Cadillacs, and other gm vehicles are expensive. Do better friend.
Larry
Price out a new Escalade for our business about a month back. Optioned out the way we wanted, with the 6.2L Diesel, Ultraview sunroofs & next generation SuperCruise came out to $110K. I would say that’s kind of pricey no matter how many zeros are in your net worth. We’ll probably end up whining about the price a little longer. Put our order in around Christmas. So we take delivery in the early spring.
Sorry, I got distracted. What were we talking about again?
Also you, Malcom and John seem to travel together. Is this a platonic relationship or are you all part of the same Trollbot?
Peter you are better then this don’t lower yourself to there standards do better brother. Are you finally able to get the diesel again? It was stopped for a good while wasn’t it?
I’m going off what a salesman said (3 month wait) With the situation who knows. For a top tier Escalade. GM probably won’t make us wait that long.
Do you have a chauffeur business?
Ouch!
Wow making jokes about suicide and a person being molested that’s real big of you. I will pray for you tonight that one day you understand how serious these issues are.
Again you don’t like the company. You don’t like the vehicles. WHY ARE YOU HERE!
I’m not sure why they are here but I do know why you are here. You are here to talk about trump, politics, and whatever narrative you feel like pushing today.
Will the real Andy please stand up.
The truth sucks don’t it?
Still not the real Andy. But if the real Andy is reading this: I would like to apologize for not telling off this Trollbot a few days ago.
What do you consider a troll? Most would consider a troll a person who has made numerous comments now about people of Asian decent long before the article today. Most would also consider a troll to be someone who talks about politics constantly just to try to get a rise out of people.
Still not Andy
You have no idea what you are talking about right now Peter. First off it was bush who signed for them to get the bailout $ in the first place. Let me remind you bush is a Republican. Bush is the one who worked with the senate to get it approved and guess what the senate voted no it wasn’t just republicans who said no it was democrats to. So for once stop talking out the side of your neck you have no idea what you are talking about.
All of the manufacturers took government money. Honestly its a tired talking point that you people need to get over. Its been long enough. Simple.
GM expects the next chip shipment next week. Next week.
Tell em “eat cake”…
Wow, not much for history, I’ll make it simpler.
Tell the imports to kick dirt…
Japanese, Korean, and German governments have been subsidizing their companies for years while the US taxpayer protects those countries militarily. If US companies got the same subsidies, gm would not have been in trouble and our steel and consumer electronics industry would not have collapsed.
Unions established wages influence all wages. Have friends in non-union shops that all got laid off couple years before set to retire. No protection.
But people keep telling me EV’s are cheaper than ICE vehicles. Why do they need any credits? They are already getting carbon credits behind the scenes.
I support EV sales rebates only for domestic brands. Foreign nations never give subsudies to U. S. brands in their territories, so no imports or locally assembled foreign brands should get any. If a local State wants to give subsidies to EVs assembled in their land, that is their right. But the Federal support should be only for domestics. Then all that Federal money stays in the U.S.
I’m not really sure how to take this. But here’s my 2c worth:
Give the biggest credits to American brands with the models that are BUILT in the USA (maybe like $5,000 credit).
Give the second higher amount to the American brand with the models build in Canada or Mexico (like $3,000 credit).
Give the lowest amount to the non-American brands that build in the USA (like a $1,500 credit).
Give NOTHING to non-American brand with the models built outside the USA. Give them ZERO.
To put that into perspective, a car like my S60 would get the $1,500 credit. The new all electric coming out soon from Mazda would get zero.
Don’t all these companies get enormous tax breaks anyways?
Jimmy: There are numerous different tax breaks out there for all these companies. I think you may be mixing this tax break offer (a tax break for those “buying” one of these cars). It sounds like you may be thinking of tax breaks that the states may give a company for coming into that state or a tax break the feds may give to bring manufacturing here instead of overseas.
Gotcha thanks for the clarification dan
Hummm, looks like the legislation is worded correctly.. It should matter where the vehicle is made, and who makes it, as GM by their own admission, no longer considers themselves an American company.
We have no axe to grind about unions. Our experience with Detroit union made in USA products has not been good. But the UAW is not fully at fault. The Detroit Three and the UAW failed to make their efforts a partnership. This had a negative result to their vehicles.
The three best vehicles we have owned are and were Hondas made in the USA not by union labor. I believe Honda would still produce a superior product even with union labor IF they could duplicate the excellent relationship they maintain with their employees.
I don’t see us going back to Detroit vehicles for E or other vehicles.. We are ordering our second Tesla for delivery in 2022 and will be buying another Honda Pilot.
Whatever the rules, the playing field should be the same globally. You will never get the Japanese government to end there protectionism of there auto industry that has been that way since I became aware of it in the 1970’s. China playing fair. Never going to happen. And if you think China and Japan don’t manipulate currency and create protectionism in there Country your in denial and choosing to stick your head in the sand.
Yankeesprings: Amen to that. When I was in Japan in the late 80’s, I was disgusted when I learned why I wasn’t seeing any American brands on the road there. Being quite young and naive at that time, I went there expecting to see American brands on the roads like you see Japanese brands on our roads. Nope. So I asked around and spoke with some people who educated me. This is a large part of the reason why I refuse to EVER purchase any Japanese brand vehicles. And yet our country allows them to come in here and do whatever they want. Sad.
As unfair as this is…foreign automakers have subsidized their companies FOR YEARS. Suck it up, turnabout is fair play.
Which party receives the majority of Union political contributions, Democrat or Republican? And which party controls the White House, Senate and House, Democrat or Republican?
Everyone of these companies are full union in their home countries. Just saying
UAW should mobilize to unionise the South instead of creating artificial divisions among the working class.