The CEOs of several automakers have signed a letter to the United States Congress requesting the removal of the 200,000-unit cap on electric vehicle incentives.
CEOs, including GM’s Mary Barra, Ford’s Jim Farley, Stellantis’ Carlos Tavares and Toyota North America CEO Tetsuo Ogawa, have called for a sunset date to end tax incentives for electric and plug-in hybrid vehicles instead of a strict number. , Reuters reports. Currently, both Tesla and GM have sold more than 200,000 electric cars and are no longer eligible for federal incentives worth up to $ 7,500.
In their letter, the CEOs argued that their companies together have pledged to invest 170 170 billion in the development of EVs by 2030. They noted concerns about the high cost of EV production and the recent problems with the supply of semiconductor chips and other components.
Read more: GM sells 200,000th EV, tax credit to drop to $ 3,750 in April
“We are asking for the removal of the per- (automaker) cap, with a sunset date for a time when the EV market will be more mature,” the automakers said in a letter. “Recent economic pressures and supply chain constraints are increasing the cost of building electric vehicles, which in turn is putting pressure on consumer prices.”
The letter was signed because of the possibility of a by-election. Automakers could try to get Congress to implement these changes before challenging Democrat control.
However, support among Democrats may not be as strong as one might assume. In April, Senator Joe Manchin, a leading figure in the Democratic Party, questioned the need to increase the tax credit for electric vehicles.
“Now there is a waiting list for EVs where fuel costs $ 4. But they still want us to throw away $ 5,000 or $ 7,000 or $ 12,000 in credit for buying electric cars. It doesn’t make sense to me, “he said. “When we can’t make enough products for those who want it and we’re still going to pay them to take it – it’s ridiculous in my mind.”
President Joe Biden, however, is keen to use incentives to support EV adoption. His administration has proposed extending the credit to ভ 12,500 in an EV made in the American Union. The letter, however, did not mention the proposal, which was opposed by Toyota.