The Biden Administration continues to face opposition to its EV tax credit proposal from several foreign countries and major foreign automakers.
According to Reuters, a group of several major foreign automakers sent a letter to Democratic Senators Dianne Feinstein and Alex Padilla last week that requested they “oppose any federally funded EV consumer incentives that do not treat California’s auto workers as equal to every other American auto worker.” The group, which included Toyota, Volkswagen, Hyundai and BMW, said it collectively employed over 9,000 Californians and generated $19.7 billion for the state’s economy in 2020.
Additionally, a group of 25 ambassadors to Washington sent a separate letter to U.S. lawmakers last Friday, which said that “limiting eligibility for the credit to vehicles based on their U.S. domestic assembly and local content is inconsistent with U.S. commitments made under [World Trade Organization] multilateral agreements.” The ambassadors, who represent Germany, Canada, Japan, Mexico, France, South Korea and Italy, among others, said the proposal would harm international automakers that create jobs and contribute to the economy in their respective countries.
Canada and Mexico previously hit out at the EV tax credit proposal in their own separate letters, with Canada saying the language in the proposal may violate the terms of the U.S.-Mexico-Canada free trade agreement. Neither the U.S. State Department nor the White House has issued public statements addressing the various letters sent in opposition to the proposed EV tax credit scheme.
Under Biden’s proposed EV tax credit laws, American purchasers of EVs would be entitled to a $7,500 federal rebate, along with an extra $4,500 for American-made EVs assembled in union facilities and a further $500 if the vehicle had an American-made battery pack. Opponents of the proposal say the tax credits would have an adverse impact on the automotive industry, negatively impacting non-unionized workforces and non-American companies.
The Biden Administration has yet to provide an update on EV tax credit plan since it was first proposed, however the incentive survived a recently updated version of the president’s ‘Build Back Better Proposal’ – a potential sign it doesn’t plan on backing down from the US-focused EV credits.
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Comments
The Branden Administration needs to atleast stand firm on this to salvage what credibility they have left.
Guestt
45. Brain Dead
46. Branden
Got it.
Sure, I care about nether about them..
Guestt
One main difference. Trump should be in Prison.
Really? Dick!
Brandon has sold out this country and the American population and has forever tarnished Americas promise to “Leave No American Behind”, who belongs in prison?
Let’s not forget his son!
Then there’s this.
58 percent of the population have no question Biden is unfit to be president. They believe this because his handlers keep him in hiding.
Worst president in US history.
Who was the Worst President in U.S. history?
(Hint: Congress impeached him twice)
That’s one of the great things about being in America you have your opinion and he has his. You think trump was the worst president and others think someone else was.
AMERICA FIRST!
R.T.F.A. – Read the damn article
Well Dick- hummmmm I voted for Trump in 2016 but Tulsi Gabbard in 2020, since she seemed to LIE the least of any major candidate.
I’d Place Trump at #2 worst, since he both implemented the first general lockdown of the US (unconstitutionally), and also put all those CDC administrators in charge who have now decided what conditions will be like in the work place, and whether small landlords (who may be somewhat poor themselves) can collect agreed to rents from their free-loading tenants – not withstanding the fact that huge property taxes and utilities keep going up and up.
And his ‘Country’s Chief Medical Officer’ Fauci – will go down in history as being as hated as much as Bill Gates will end up being hated.
Good ‘ole Abe Lincoln I’ll say is #1 most hated since he didn’t let Southern States Secede, which they thought they had the constitutional right to just a few decades earlier. Old time Southerners don’t talk about the “Civil War”, they call it “The War of Northern Aggression”.
It is more than interesting to me that Mr. Trump keeps complaining about stuff Biden isn’t doing – which Trump didn’t do himself when holding the Presidency, while the House, and Senate were all Republican.
At least Biden got the USA out of Afghanistan… kinda. But no complement to him since he is not intelligent enough to make timely use of the Restroom; besides calling the POPE an ‘
African American Athlete Ball Player’.
I have never heard that Japan, South Korea or Europe include Foreign car companies when priding funding to boost their r automobile industries. I just don’t get it.
I just don’t get why they need any subsidies. The advocates keep telling us that EV’s are cheaper than ICE cars. So if they really are cheaper, they don’t need a subsidy. People will buy them because they are better and cheaper anyway. Worse if they really do become ubiquitous, then all the subsidy does is tax everyone 4K and turn around and send a check back to them for 4K to buy the EV.
The big problem is the range. Take a 300-mile range EPA car — that estimate is under certain conditions. You lose range if you drive on the highway. You lose range with AWD. You lose range in extreme cold. You lose range in extreme heat. You lose range as it ages. You lose range when the thing sits on your driveway. That 300-mile range EPA car can easily be cut in half in bad times. What do you do? It’s $4,000-$9,000 for a new battery. If you’re planning on ditching the car in a few years, then you’ve saved money, but if you’re planning on keeping it for 15 years, then you probably have a number of battery replacements to do.
Don’t buy one, almost like saying a 2 seater is a bad family car.
So not better? I’m looking for an answer from an advocate to explain why a car that is “better” and less expensive to operate needs a government subsidy. To me, you need a subsidy to encourage people to buy an inferior product. I also find the absolutely schizo response of the governments to rising oil and gas prices. You’d think they would be ecstatic as more expensive O&G means green energy is more attractive. But all I see is the west begging Putin and the Saudi’s to pump more carbon generating O&G. And those leaders in the west are green advocates. Completely illogical.
If you use your car for work and light driving around the city, an EV may be better. If you plan on doing roadtrips or cold weather driving, then the current generation of EVs is probably worse. EVs come with a higher initial price, so the subsidies help sweeten the deal. Eventually when (if) EVs become better, subsidies will be removed and taxes will be added.
Richard P.
Please don’t buy any electrics then…. There are plenty of fine 100% internal combustion engine vehicles made, and will be for decades in the future. Gasoline is still ‘relatively cheap’ – so in doing so don’t complain about the rising prices even though personally I avoid all of them.
Everything you said is greatly overstating the case – for instance GM cars don’t lose range in the driveway. Some Teslas though have a huge loss. GM plug-in car’s auxiliary 12 volt batteries last almost 10 years, lasting longer than most gas-powered cars, unlike Teslas in cold weather, where the batteries have to be replaced 3 times per year under warranty – as told by my Canadian friends.
Years ago I owned a Tesla Roadster – the most expensive to maintain vehicle I ever had by far. The new Teslas don’t seem much better – voiding the much more restrictive warranty if driven “over uneven or broken pavement”, something I do all the time with all 3 of my GM plug-ins. In areas (like mine) where salt is used on the roads, to keep the warranty in effect, the 4 brakes must be serviced every 11,500 miles. You ever price a 4-wheel brake job lately?
The Warranty is the most important feature of any car, and therefore I CANNOT buy any current Tesla. GM electrics are conservatively designed by comparison, and are almost universally great values… All my plug-ins (in the Spring, Summer and Fall) use about 1/4 of the fueling cost of an equivalent 100% ice vehicle. But if you still don’t like them, please do not purchase one. Since 2 of my 3 plug-ins have a tiny auxiliary engine in them, I run the engine in the winter time to have economy not unlike an old Toyota Prius.
You act as if the federal government didn’t subsidize the innovation in ICE vehicles, and improved fuel economy along with lower emissions. There was more money in it for the oil industry than the money they’d lose if they refused to cooperate and build more efficient and safer engines… 🤔🤔
I think people are just sick of the government blowing money I’m sorry tax payer money. Sad day when all the small businesses that have closed and continue to close can’t get money but by god hell yea let’s give incentives so people buy cars from wealthy corporations lmao. Only in america though right land of the free. 😁🇺🇸🇺🇸🇺🇸
When, exactly, did the “federal government subsidize innovation in ICE vehicles” genius ? You’re either an ignoramus or another EV fan-boy liar. Instead of “subsidizing” they issued mandates that no one voted on that were in blind lock-step with CARB regulations that no one voted on that added 10’s of thousands to the cost of new vehicles for everyone. Try getting a few historical facts before shoving your foot further into your lying mouth.
#FJB
Shockandawe,
For Just Bolts? As in gm wants the government’s incentives to be for just Bolts?
Shockandawe
#GFY
You caught one bro lol. lil dicky here got triggered.
Guess who pays for tax credits!
Steven Sternberg,
That’s why I’m opposed to tax credits in this instance and generally in all instances. There is no magic supply of money. Anything given to one person or group has to be taken from someone else.
How is it fair to tax people who cannot afford a $90K Hummer EV or $75K Audi E Tron and give the people who can a reward for buying it. That plan is just insane to me. It’s all about manipulating behavior and is grossly unfair. Most EVs right now, maybe not all but most, skew towards the upper end of the market which means they’ll be purchased by higher income persons who buy them as second or third cars and as a novelty. The incentive reward they’ll get for doing what the current government wants them to do will come out of the pockets of all Americans, including the poor folks who have to sign up for 72 months of payments on a Camry.
Neither of the vehicles you are highlighting would be eligible for the credits at all based on MSRP. Under the current credit structure the Audi would, but not the Hummer because GM has sold more than 200k plug-ins.
Ryan,
Isn’t that what the legislation seeks though? Isn’t it a new program to again attempt to assist the EV segment to gain acceptance with the prior caps on sales eliminated in the new legislation? As I understand it, gm vehicles would be eligible for subsidy again under the new bill.
I do believe you’re right about cost and the subsidy will perhaps not apply to the highest priced EVs. However my point is still valid. All taxpayers would be subsidizing the cost of new EVs for the group of people that can afford them and from what I’ve anecdotally seen, EV buyers are the more affluent folks and usually buy a Tesla to supplement their fleet of ICE vehicles.
I believe the declared “goal” of the legislation is to make a greener fleet of vehicles on our roads. If that is the true goal they wouldn’t have any restrictions, if you are buying an EV you get a credit. I don’t think that is how it should be, but if they were truly trying to accomplish the stated goal that is what you should do.
I am in favor of keeping the current credit for EVs ($7500 if battery is above a certain size which I can’t remember right now, but it should be made larger, say 50kWh). Lift the production limits so as not to penalize OEMs who adopted EVs earlier. It is true that as of this moment most EVs are in the luxury segment with more affluent buyers (in general), but the number of mainstream, affordable EVs is going to increase 10 or 20x within the next 3-5 years. The credit is probably what it will take to get the mainstream buyer to make the switch. The only reason they don’t now is “this is how I do things now and I don’t want to change, especially if the upfront cost $XXXX more.” The range argument will rage on, but the truth of the matter is that most (not all) will never approach even 25% range on a given day.
Full disclosure: I like EVs. I have had a Volt for over 7 years. I have a Rivian R1T preordered, and I will probably put a preorder in for the Silverado EV when it is available (depending on the specs). If the Silverado comes sooner I will switch my Rivian order to the R1S for my wife. EV Credit or not will not influence my decision on what to buy, but it is looking like some form of credit will be in effect, so I would prefer to be able to use it if I am paying into it anyway. No matter what your economic standing is, paying less is always better. As much as I love my ICE cars and trucks (and I do as much or more than anyone), it makes absolutely no sense to me to buy one again as a daily vehicle. The only ICE cars I will own will be strictly for weekend fun and racing purposes.
I think there is a limit on the price of the electric vehicles to get the rebates. $60K. ?? $75K. ? I’m not sure. So, no rebate on a Hummer EV. Also, the rebates may encourage “foreign” manufacturers to build EV car production and battery production facilities in The United States. They may want to do that for the long run to cut down shipping and transportation costs anyway. But, some consideration should also be given to vehicles made in North American facilities; especially those in Union shops in the rust belt.
Foreign manufacturers are going to continue selling cars in California and the USA no matter what. Shame on Toyota – the Prius has sold in the millions yet not one of them has been built in the USA.
Mr. President, stand firm with the plan.
Build the infrastructure to support these vehicles first. The inevitable of fossil fuel depletion is not to far in the future, and I believe government should facilitate what’s needed for this upcoming technology.
EV’s lose 40% of their value in six months.
Nobody opposed EV tax credit … this is click bait at work here .. LOL. They opposed extra $4,500 for American-made EVs assembled in union facilities. It is payback time for Biden and his admin, simple as that. The union has always endorsed and supported Democrats, so Biden it using tax payers’ money to pay them. Well, I have a better idea, why don’t Biden use money from those who voted for him to pay the union then? Not my money.
Also, I agree with many others here. The media has touted how efficient, cheaper to own, better for the environment …etc.. EVs are over ICE. If they are better then why the need for incentives? Shouldn’t people line up to buy these? iPhone didn’t need any incentives from the government, but people still dumped their phones to buy the much more expensive smart phones.
Diesel G:
Do you and others realize that a ‘tax credit’ is not a SUBSIDY?? It is merely an occurrence during a Tax Year, when the Government doesn’t STEAL as much money from me as they usually do.
I suppose if I decide to work less overtime I’m STEALING from the government since they are not getting their expected tax revenue if I earn less?
Subsidies on EVs is just another handout to the wealthy from the middle class. The middle class will pay the taxes that act as an incentive for wealthier people to buy a new EV every year because it’s a tax credit.
Mf,
I think that’s right. Cheap EVs like the Bolt and Leaf haven’t proven very successful because they’re not a good substitute for an ICE if they’re a person’s only vehicle and the Leaf and Bolt are more entry level products. Tesla’s and the Audi E Tron or offerings like that have been more successful because wealthier folks buy them to park alongside their Range Rover, S-Class, and 911. If conditions are right, they take the Tesla and they love it. However, in other instances they need the flexibility of the Range Rover. Nothing wrong with that. I’m not opposed to EVs or to someone buying one. I just don’t think the guy living in an apartment, working at a middle class job, and with 72 months of payments on his Camry should be taxed so the more affluent can get a rebate from the government for the EV they bought as their third car.
Man – I don’t know what happened to the people here… Anyone who thinks that a ‘tax credit’ is a Giveback to the Wealthy from the middle class – is clueless as to what ‘tax credits’ are……. It is simply a Tax year when they don’t steal as much money from me…
Seeing as I have had so much $MONEY stolen from me over the decades, the fact that if I make a purchase of an EV I get a LITTLE LESS STOLEN from me in that year – I will certainly take advantage of that.
Rather like a burglar coming to my house and stealing only 1 tv set one year instead of his normal two. The guy is STILL STEALING – just somewhat less. Of course, this analogy is inexact since the various gov’ts steal so much more of my income.