Toyota, US Democratic EV tax deduction expansion plan “worker discrimination” Tesla also opposes | Reuters

[Washington, 13th Reuters]–Toyota Motor Corp. has criticized the US Democratic Party’s proposal to increase tax deductions for electric vehicles (EVs) on the 13th, accusing it of discriminating about half of the domestic car workers.

Toyota Motor Corp. has criticized the US Democratic Party’s proposal to increase tax deductions for electric vehicles (EVs) on the 13th, accusing it of discriminating against about half of the domestic car workers. Taken in February 2010 (2021 Reuters / Valentin Flauraud)

The proposal is to significantly raise the tax credit for EVs assembled at factories with labor unions in the United States, which will be an advantageous measure for the three major U.S. automobile companies (Big Three), but Japan, which is not a member of the union On the contrary, it is disadvantageous to manufacturers.

In a letter to Congress, Toyota appealed to lawmakers to “refuse to use the country’s limited resources to offer exorbitant tax cuts to wealthy people who buy expensive cars and trucks.”

Foreign manufacturers and US EV giant Tesla have not joined the union for employees of finished vehicle factories in the United States, and many have resisted the efforts of the United Auto Workers (UAW) to form a union.

Tesla CEO Elon Musk said in a Twitter post yesterday that the tax incentives for EVs were developed by Ford and UAW lobbyists who produce EVs in Mexico. “It’s unclear how useful it will be for US taxpayers,” he said.

Ford produces the EV “Mustang Mach E” in Mexico, and this tax deduction expansion measure will not be applied.

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A Ford spokeswoman said the company plans to produce the EV version of the pickup truck “F-150 Lightning” and the electric commercial van “E Transit” at its US plant, further increasing domestic production.

The UAW did not comment on Mr. Musk’s tweet, pointing out that the majority of car workers worldwide are members of the union. “US taxpayers’ money should be spent on domestic products, and US workers should be granted the same voice as other car workers in the world,” he said.

Honda, which has factories in Alabama, Indiana, and Ohio, accused the tax incentives of “discriminating against EVs made by hard-working US car workers simply by belonging to a union.”

Toyota is not currently producing a complete EV in the US, but plans to launch two new EV models in the US next year.

Meanwhile, Chrysler’s parent company, Stellantis, said the tax deduction plan would “make EVs more affordable for more Americans, revitalize the market and, as a result, support high-wage employment in the middle class. I praised it.

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