EV tax-credit plan draws ire from non-union Toyota, Tesla

US lawmakers plan to give further subsidies for EVs by unionised carmakers, seen to favour companies like General Motors, makers of the Chevrolet Bolt EV seen here. — REUTERS

A proposal by US House Democratic lawmakers to give union-made electric vehicles higher subsidies drew criticism by non-unionised automakers, including Toyota Motor Corp., Tesla Inc. and Rivian Automotive Inc.

Under the 10-year proposal unveiled late Friday, union-built electric vehicles will get an additional US$4,500 (RM18,641) tax incentive, a measure that would favour the three traditional Detroit carmakers – General Motors Co., Ford Motor Co. and Stellantis NV – whose factory workers are represented by the United Auto Workers. That sweetener would be on top of a US$7,500 (RM31,068) base incentive that would be available for EV vehicles.