CEOs of GM, Ford and other automakers urge Congress to lift electric vehicle tax credit cap

0
38

The all-electric Chevrolet Silverado at the New York Auto Show, April 13, 2022.

Scott Mlyn | UKTN

DETROIT — The CEOs of General Motors, Chrysler parent Ford Motor, Stellantis, and Toyota Motor North America are urging Congress to lift the federal government’s cap on the number of vehicles eligible for a tax credit of up to to $7,500, a move they say will encourage consumer adoption of cars and trucks.

In a joint letter Monday to congressional leaders, the leaders say the credit, which begins to disappear once a company sells 200,000 plug-in electric vehicles, is key to keeping vehicles affordable as costs rise. of production and raw materials increase.

See also  We are looking for a winner we still believe in to raise funds and adjust our position

“Removing the cap will encourage consumers to embrace future electrified options,” the letter says.

GM and Tesla, the electric vehicle industry leader, are the only companies to have exceeded the limit so far. But other automakers are also expected to approach the 200,000 mark as they launch a range of new electric products.

The letter, which was first reported by Reuters, instead recommends an extinction date for the tax once the electric vehicle market is more mature.

“The coming years are crucial for the growth of the electric vehicle market and as China and the EU continue to invest heavily in electrification, our national policies must work to consolidate our global leadership in the automotive industry” , indicates the letter.

See also  BOJ's Kuroda says weak yen benefits economy if moves aren't too sharp

The letter also notes that the four companies have pledged to invest more than $170 billion through 2030 to support the development, production and sales of electric vehicles, including short-term investments of more than $20 billion. dollars in the United States.

For years, GM CEO Mary Barra and other executives at the Detroit automaker have urged that the cap be lifted to create a level playing field. They say the current policy penalizes early adopters of the technologies.

See also  FTSE 100 Live: 50-year high for the S&P 500, the price of oil falls

The letter was addressed to Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, House Minority Leader Kevin McCarthy and House Speaker Nancy Pelosi. It was signed by Barra, Ford CEO Jim Farley, Stellantis CEO Carlos Tavares, and Toyota North America CEO Tetsuo “Ted” Ogawa.

Correction: Kevin McCarthy is the House Minority Leader and Nancy Pelosi is the Speaker of the House. An earlier version distorted their titles.

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here