Unfair? Toyota Launches Advertising Campaign Against Electric Vehicle Tax Credit Program

Toyota Motor North America has previously voiced opposition to the proposed electric vehicle tax credit scheme tied to the Democrats’ latest spending bill. This week, he decided to expand his message by buying advertisements in national publications.

Starting Tuesday, Toyota will launch an advertising campaign designed to bring Americans to its side of the fence. While the automaker isn’t inherently offended by the government-backed incentives for electric vehicles, it took umbrage at the Biden administration’s insistence that consumers receive an additional $ 4,500 incentive for the electric vehicle. purchase of products made by unions. While the reasoning should be obvious, since the company does not have a unionized facility in the United States, the automaker is enjoying growing support as related legislation is stuck on Capitol Hill.

While the Build Back Better Act is all about subsidized child care, adjusting healthcare, and overhauling a few tax codes, its primary goals are to set aside hundreds of billions of dollars for climate initiatives. The latter aspect was also the one feature that was the least subject to change as the bill was adapted in the hope of gaining greater support from Congress. The climate agenda is obviously important to the Biden administration, and the proposals build on an earlier White House pledge to switch the entire federal fleet to electric vehicles – this plan, however, appears to be struggling to get started.

The Build Back Better legislation aims to increase consumer tax credits up to $ 12,500 for electric vehicles assembled in a factory represented by a union with batteries produced in the United States. Everything else will be below the maximum by at least a few thousand dollars.

Toyota found this unfair and totally contrary to the United States government’s desire to encourage a free market. In advertisements disseminated in points of sale such as the the Wall Street newspaper and New York Times, the automaker calls on Congress to “put politics aside” and ensure that electric vehicle tax credits are applied equally.

“What does that say to the American auto worker who decided not to join a union? However, their job is worth $ 4,500 less because they made that choice, ”the ad asks. “What does this say to the American consumer? He says if they want to buy an electric vehicle that is not made by Ford, General Motors or Chrysler, they will have to pay an additional $ 4,500, or about $ 100 more per month over a four-year period.

According to Automotive NewsToyota is already seeing the formation of a coalition of supporters. This includes, but is not limited to, the American International Automobile Dealers Association (AIADA) – representing over 9,000 international branded dealers located in the United States. Last week, they called the proposed EV framework “discriminatory.” He then issued an official letter asking the White House and Congress to “stop playing politics with car sales and start working for all Americans – not just those who pay union dues.”

“The inclusion of this $ 4,500 UAW-only tax credit is an insult to the 673,000 Americans who work in international nameplate factories and dealerships,” said AIADA CEO , Cody Lusk. “Far from ‘Building Back Better’, this provision makes it harder for Americans to buy green vehicles because it can only apply to a handful of the more than 60 electric vehicles available for sale today. “

Of A:

The Toyota ad comes as opposition to the proposed electric vehicle tax credit grows, with other international automakers, Republican state auto governors, Canada and Mexico criticizing the proposal.

A group of 25 ambassadors in Washington also questioned the proposal in a letter sent Friday October 29 to House Speaker Nancy Pelosi, Minority Leader Kevin McCarty, Senate Majority Leader Chuck Schumer. and Minority Leader Mitch McConnell.

The ambassadors, who represent Germany, Japan, France, South Korea, Italy, the European Union and other countries, said the legislation “if implemented, would violate the rules. international trade, would disadvantage American workers employed by these automakers and undermine the efforts of those automakers to expand the U.S. electric vehicle market to meet the administration’s climate goals.

Autos Drive America, a group that represents the U.S. operations of international automakers including Toyota, said the ambassadorial letter “should convey to the administration and Congress that this is just bad policy.” .

“It discriminates against American workers, undermines global climate change goals and threatens our relationships with our business partners,” Jennifer Safavian, CEO of Autos Drive America, said in a statement. “Tax incentives should be fair and equal for all electric vehicles. “

Senator Debbie Stabenow (D-MI) has supported pro-union aspects of the bill since before it was created and said it would encourage the security of high-paying jobs in Michigan. Since the proliferation of electric vehicles will eventually reduce the number of auto-related manufacturing jobs, his claims seem worthy of some criticism. However, the majority of union-backed facilities exist in the Midwest, so she’s not entirely wrong in suggesting it could help keep the industry confined to its state.

UAW President Ray Curry also praised the Biden administration, saying the proposed electric vehicle tax credit would be a “victory for auto manufacturing workers.”

The case is literally divided along partisan lines. Strong Democrats and labor groups support the plan as is. Republicans and automakers who believe they will get less free money from the government are widely opposed, citing the issue as unfair. Basically everyone wants the taxpayer’s money and is going to be upset if they have a smaller slice of the pie left.

Our opinion ? The sale of electric vehicles had been strongly encouraged by the US government for more than a decade before the creation of Build Back Better. Meanwhile, internal combustion vehicles continue to be crippled by evolving regulatory sanctions (from around the world) that are supposed to be good for the environment. While some of these efforts undoubtedly have merit, the results do not always translate into reduced pollution without a strong and reliable national energy plan. China is also now responsible for a quarter of global greenhouse gas emissions and benefits immeasurably from the increase in sales of battery-powered automobiles. Many proposals also seem to be more geared towards helping select industry players and political allies than cleaning up the atmosphere. All in all, one wonders what the real effectiveness of such proposals is and why electric vehicles have not yet been able (or even asked for) to fend for themselves.

[Image: Imagenet/Shutterstock]

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About Michael S. Montanez

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