Two of the major electric car manufactures are coming out in force against the Democrat plan to offer larger incentives for electric vehicles built in union shops.
Between the two companies, they have the capacity to build more than 3.5 million electric cars.
However, because they are not union shops, the new subsidy that is part of the Democrat plan would not benefit either manufacturer.
On Friday, the House Ways and Means Committee revealed that part of the massive $3.5 trillion spending bill would include increasing the maximum credit by $4,500 for battery-powered vehicles.
In addition to that, there would be an additional credit of $500 for battery packs that featured 50 percent production in the United States.
The total of the new credit allowed would be $12,500, up from the current $7,500, and the plan would be in place for a total of five years.
Rep. Dan Kildee (D-MI) stated, “We want to incentivize this. It puts American manufacturers in the lead, which is where we want them, and it reduces emissions faster than any other policy that we could put in place.”
Honda and Toyota are foreign manufacturers, but they do have factories in the United States, employing US workers, but they are non-union shops.
Honda, in response to the plan, stated, “If Congress is serious about addressing the climate crisis, as well as its goal to see these vehicles built in America, it should treat all EVs made by U.S. auto workers fairly and equally.
“We urge Congress to remove discriminatory language tying unionization to incentives from its budget reconciliation proposal.”
Toyota offered up a similar statement, hammering the proposal for hurting “American autoworkers.”
Elon Musk, CEO of Tesla, the only major US manufacturer in the industry that is not a union shop, also hammered the plan.
He stated, “This is written by Ford/UAW lobbyists, as they make their electric car in Mexico. Not obvious how this serves American taxpayers.”
Source: Fox Business