GM’s Mary Barra And Other CEOs Ask Congress To Lift EV Tax Credit Cap
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The CEOs of several major automakers, including GM CEO Mary Barra, recently signed a joint letter urging Congress to lift the EV tax credit cap.
According to a recent report from Reuters, the joint letter was signed by the CEOs of the Big Three Detroit automakers (GM, Ford, and Chrysler-parent Stellantis), as well as Toyota North America. In addition to GM CEO Barra, this includes Jim Farley (Ford), Carlos Tavares (Stellantis), and Tetsuo Ogawa (Toyota North America). The automakers indicated that they have pledged to invest more than $170 billion through 2030 towards the development of electric vehicle technology, production, and sales.
As it stands, the current $7,500 tax credit is phased out once the manufacturer reaches 200,000 EV units sold. GM has already hit the cap, and is therefore ineligible for further consumer tax credits. Tesla has also hit the cap. Toyota expects its EV credits to expire by the end of the year, while Ford is on track to hit the cap by the end of 2022.
The automakers cite recent economic pressures and supply chain constraints as increasing manufacturing costs, thus raising prices for consumers.
“We ask that the per-(automaker) cap be removed, with a sunset date set for a time when the EV market is more mature,” the automakers state in the letter to Congress. There are growing concerns that an extension to the EV tax credit may not be possible in the future with Republicans poised to possibly retake control of one or both houses of Congress next year.
However, not all Democrats are convinced. For example, Democratic Senator Joe Manchin recently called into question whether an extension was needed in the face of high fuel prices and long wait-times for new EV purchases.
Last year, Democrats in Congress, as well as President Biden, proposed a boost to the EV tax credit to $12,500, including $4,500 for union-made vehicles assembled in the U.S. Biden has also backed a 30-percent credit for commercial EVs and a $4,000 used EV tax credit. In addition, Biden has called for phasing out credits for EVs made outside the U.S.
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No Mary Barra. GM, Tesla and other automakers do not deserve another corporate welfare bailout from the taxpayers.
Clean up your business or enjoy Chapter 7 like Electric Last Mile Solutions.
I disagree. What the taxpayers should do is buy GM and make it a not-for-profit American electric car company. Providing we move jobs here, make reliable EVs, and make them crazy affordable.
Garry Bibb
That’s Communism
And ask Venezuela how that communism is working.
Just bought my second EV. No tax credit and I wouldn’t be eligible anyway. Didn’t stop me from buying the EV on my fixed retirement income. Really don’t need this give away
So you support taxpayers subsiding corrupt corporations that then ship their jobs overseas in the downward spiral of hunting for cheaper labor.
That shows how morally rotten you are.
Why are we subsidizing oil companies with tax dollars then? They have record profits and practically everyone has an ICE vehicle. If they can’t survive without the subsidies, they should go clean up their business.
We can do what we want in America if you don’t like it leave my country.
Will gladly.
Enjoy having America turned into an irradiated ash heap by Adolf Putler and his nuclear arsenal.
If Russia maintains its nukes like it maintains the rest of its military, half of them will explode before leaving the ground.
Right! Not to mention our nuclear defense net. Aegis and THAAD do have 100% success rate in even the most difficult test scenarios.
They actually do not.
In an ICBM launch you have 5 minutes to shoot down the missile before it separates from the warhead and is unstoppable. Never mind if hundreds are launched at once.
SO WHAT IF THEY LAUNCH ?
YOU ONLY DIE ONCE !!
No what will happen is corrupt elements in the military will sell them to terrorists.
People really need to read history.
Shell posted a 6.3Billion Profit last quarter alone. When most Americans were coping w/ record high fuel prices, that have not subsided.
So why are you here if you hate capitalism?
And oil companies have nothing to do with prices at the pump but good try. Supply and demand, the value of the dollar, market conditions and world events are big factors. Turning many of our taps off and the war on fossil fuels by our current admin are also playing a big factor.
Joe Yoman
Electric cars don’t use gas. If enough people make the switch gas prices will come down
How do you think the coal gets to the electric plant? Either by Diesel trucks ir by diesel electric trains. Oh and when the coal gets mined do you think it just jumps out of the ground into a container? Fossil fuels get the coal up and delivered. So the end result of electric cars is fossil fuels🤦🏻
The tiny amount of Diesel used by a Train to deliver a TRAIN LOAD of Coal to a coal fired central station is an almost unbelievably small amount of energy compared to the energy in the coal itself.
Its rather like the argument that Gas Stations need electricity to pump gasoline, therefore all Gasoline cars are Electic Cars…
A pump to run 5 simultaneously running dispensers at a gas station may use 2,000 watts, or lets say 25 cents per hour of operation. But in one hour’s worth of time the station will sell 1,500 gallons at least…. That is $7,500 if the station charges $5 / gallon.
The gas station can afford the expense of $1 electricity cost per $30,000 of sales….
Actually the parking lot lights and convenience store attached to the dispensers use much more juice than the pumping operation.. And my numbers for the cost of the pumping operation are much higher than what they actually are – I just gave the absolutely ‘worst case’ pumping costs, and in my area – commercial electricity costs are far cheaper than 25 cents per hour to run the pump for 5 dispensers.
Since moving things by TRAIN is BY FAR the most economical way to ship things (other than piping it), any utility will cough up the few gallons of #2 fuel oil required to power the Diesel powered train.
They are subsidized though. Don’t know what else to tell you.
A couple of my friends spouted this same “subsidizing oil companies” BS, so we googled it. You may want to look at the number. The numbers were a couple of years old but it was less than $200 million. For a multi trillion dollar industry it is nothing. Significantly less than the industry had invested in the Keystone pipeline which clueless Joe shut down the first day in office. It would have been operating by now giving us more oil (from friendly Canada) than we were importing from Russia, Venezuela and Saudi Arabia combined when the war started.
EV sales are currently greater than production can handle. Why the hell would they need a subsidy? Classic government stupidity.
we don’t, they pay taxes. And the latest is to windfall tax the oil company profits.
FYI….pay attention…..Oil Companies are “subsidized” to encourage and foster the financial risks of Exploration and Drilling….that is until bean-brain in the WH shut down leases and exploration on Federal Land which opened the door to begin the Worldwide price gouging. Once a domestic Well “comes-in” and is producing, the taxes paid on the output far, far exceed any initial tax subsidy originally extended to them by hundreds if not thousands of Percent. You should try learning facts about the Oil Business and stop listening to the idiots who are trying, and succeeding at indoctrinating you.
Lil Dky
EV buyers get the tax break. Not the auto companies.
Which allows them to charge higher prices and sell more volume. No, the manufacture gets the rebate.
If GM didn’t profit from this they wouldn’t give two sh#ts
Mr Mike
GM’s EVs haven’t been eligible for the tax break since 2018.
Chrysler and Ford got subsidies for the: Fiat 500EV; Chrysler Pacifica PHEV; Ford FusionEnergi PHEV; C-MaxEnergi PHEV and the Ford Focus all which were made in Mexico
Toyota is still getting subsidized for the lame@ss PriusPrime which is made on Japan
Joe Biden is the worst president of all time!
He’s a absolute disgrace.
Piggy backing off MR. Mikes comment, we subsidized Universities. The universities the. Realized we were willing to pay that full subsidy, plus what we had in our pocket to begin with, so they raised the prices. We went back to the government, who raised the subsidies, followed by more tutition raisies, followed by this same cycle again and again and again. Now many universities have headgear funds they call “dowry’s” which are legally special because they bribed politicians to make them tax exempt.
If you went to a university here, look up your universities current dowery. Id bet you it’s bigger than the GDP of half the countries in Europe. Subsidies never held the working man…. Ever ever ever. Name me just 1 time it didn’t come back to bite us in the butt.
Hedge funds, not headgear funds stupid autocorrect
Cap or no cap, it should be level across all manufactures and not penalize early adopters like GM and Tesla.
That said. They’re making shocking never seen before amounts of profit. And they have the FU#(@(#! nerve to site economic and supply chain issues causing customers to pay higher prices?
The money doesn’t go to the carmaker it goes to the consumer.
Joseph:
You’re on the right track, but there is no money ‘given’.
The Consumer is simply NOT THIEVED quite as much in the year they buy an electric car, than in other years..
All it is , is a reduction in taxes that would otherwise be paid by the Consumer..
Why ‘Neo-Conservatives’ are against this is crazy…. A TAX DECREASE FOR THE CONSUMER IS A TAX DECREASE, period. And the current proposal at least keeps more AMERICANS working.
Of course – all the historic Neo-Conservatives were actually war-mongering flaming liberals who back in the day ‘Went All the way with LBJ !!! (Lyndon Johnson) in 1965, prior to their fake ‘conversion’.
IRS take is nowadays about 1/3 rd of the actual amount the fed gov’t spends each year….
Taxing the little people at all is merely to keep them under the govt’s thumb.
These are government programs. Of course they are a mess. This never should have gone this way. It rewards those late to market. It’s not GM, Tesla’s and the rest’s fault the fools we elect are completely lost.
Tax credit for import with Tesla and gm hard workers tax payer.
How must money that government profit from Tesla and gm. The question is why this people hate America?
Lovely! We have a war going on, record inflation, record gas prices, a pandemic still looming, the car industry in taters, record home prices, a looming recession, the border crisis and the collapse of the retail industry and all these cretins can think about is their bottom line with their electric car agendas. November can’t get here soon enough!
Does Idaho know about the auto industry getting into taters?
Mary and the others could donate a portion of their insane salaries toward the rebates and recoup it through all the sales they will help generate. If they truly believe in evs?
Or Elon. Let’s see, 200B last I heard is what he is worth mainly from tesla, divided by say 10M cars is still 20K/car he could toss in.
No! The tax credit was to help the industry get started and achieve viability. Based on the success of Tesla, that’s already occurred. There should be no more corporate welfare for GM. Barra has rolled the dice on EVs and staked the whole company on them. Let her live with the consequences of that decision, whether it be good or bad, without money from the taxpayers.
The truly insulting thing about EV rebates is most Americans can’t afford a $70,000+ EV from GM but with the government-funded rebates, those who can’t afford an EV will effectively help pay for them for those who can. So the guy driving the Corolla paying his taxes every week will see his money used not for the collective public good but to help buy a Cadillac EV for his more affluent neighbor. That’s a totally inappropriate use of the government’s taxing authority.
“The automakers cite recent economic pressures and supply chain constraints as increasing manufacturing costs, thus raising prices for consumers.”
that’s happening to just about every sector of the economy. ev manufacturers are not special.
is there a demand problem with ev’s? seems like everytime a new ev comes out, reservations are full and they are sold out. if you are having a hard time selling ev’s in a world of $5/gallon gas, maybe you are in the wrong field.
Why should someone that can afford an $80K EV get a tax rebate?
Total, complete Socialism and nothing but a load of more Barra Bull-Feces ! No way I, or anyone else, should be paying for someone, anyone, to buy any car/truck ever ! I don’t care if it’s Gas/Diesel/BEV/Hybrid or powered by wind-up Rubber bands….THIS IS WRONG ! Any worthless, socialist Congressman or Senator that tries to introduce a bill to do this or if Biden issues another of his tyrannical EO’s that person should be run out of Government. Get rid of Mary Barra and any other Socialist scum that signed this “letter”.
I guess I’m not allowed to comment here any longer…. It sees my name and then it erases my comment.
EV wars are coming. Subsidies or not, how well will GM and Ford compete with Tesla? Tesla does virtually no advertising, has no legacy expenses from unions, has the experience of building over a million EVs. Tesla is vulnerable in the truck EV field. Cybertruck is late and styling questionable. Price?
Why doesn’t congress make a NO PORK BILL that totals up all the credits and say we have this many credits left for ONLY EVS (not this 50 mile hybrid plug in crap!) for all cars and let less fortunate people (like me) claim it on two tax years! This isn’t that difficult!! Even Joe Manchin would probably sign it!