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Biden electric vehicle push hits setback in U.S Senate

Reuters2021-12-20

WASHINGTON, Dec 19 (Reuters) - A bid by the White House to dramatically boost electric vehicle tax credits hit a major roadblock on Sunday when a key Senate Democrat said he would not support a $1.75 trillion domestic investment bill.

West Virginia's Joe Manchin appeared to deal a fatal blow to President Joe Biden's signature domestic policy bill, known as Build Back Better, which also aims to expand the social safety net and tackle climate change.

The bill includes increasing the current $7,500 EV tax credit to up to $12,500 for union-made U.S. vehicles as well as creating a credit of up to $4,000 for used vehicles. The bill would also again make General Motors and Tesla Inc

eligible for tax credits after they hit the 200,000-vehicle cap on the existing $7,500 credit.

The bill also includes a 30% credit for commercial electric vehicles.

GM and Ford are both launching electric pickup trucks in 2022 and new tax credits could be crucial to meeting initial sales targets, as well as meeting rising vehicle emissions requirements.

Biden wants 50% of new U.S. vehicles to be electric or plug-in electric hybrid by 2030. The administration is expected as soon as this week to finalize tougher new vehicle emissions rules through 2026, automakers say.

Manchin opposes a $4,500 tax credit for union-made vehicles that is part of the $12,500 proposal. He calls the union credit "wrong" and "not American."

The EV tax credits are backed by Biden, many congressional Democrats and the United Auto Workers (UAW) union and would disproportionately benefit Detroit's Big Three automakers - GM, Ford Motor Co and Chrysler parent Stellantis NV - which assemble their U.S.-made vehicles in union-represented plants.

Tesla and foreign automakers operating in the United States do not have unions representing assembly workers and many have fought UAW efforts to organize U.S. plants.

Toyota Motor Corp, which has a plant in West Virginia but whose U.S. employees are not union members, has lobbied against the $4,500 union credit.

Toyota announced this month it is building a $1.29 billion battery plant in North Carolina, while EV startup Rivian Automotive said on Thursday that it will build a $5 billion plant in Georgia.

Vehicles would have to be made in the United States starting in 2027 to qualify for any of the $12,500 credit, which includes $500 for U.S. made batteries. It has faced criticism from Canada, Mexico, Japan and the European Union.

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评论18

  • miaomee
    ·2021-12-20
    Like n comment pls
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  • PearlynCSY
    ·2021-12-20
    America extreme greed in printing almost unlimited amount of money will surely come back to haunt her even with USD as a global reserve currency. Many countries are simply disgusted with the abuse of the US. Manchin will certainly come under tremendous pressure to support Joe Biden's printing machines
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    • PearlynCSY
      Tks for sharing
      2021-12-21
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    • RudolfKennedy
      No matter whatever they do, the position of the dollar in the global monetary system will not change.
      2021-12-20
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  • exoticduck
    ·2021-12-20
    Like
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  • SSVC
    ·2021-12-20
    K Appreciate your response and comments Thanks 
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  • EY12
    ·2021-12-20
    Like
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    • miaomee
      Like
      2021-12-20
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    • EY12
      hi
      2021-12-20
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  • d4rkr41n
    ·2021-12-20
    Really hope they can push for more EV incentives. 
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  • Lanying
    ·2021-12-20
    O
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    • Lanying
      O
      2021-12-20
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  • buckethead
    ·2021-12-20
    Ok 
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  • Cvt
    ·2021-12-20
    Ok
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  • OddEyeCircle
    ·2021-12-20
    If circuit and the same
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  • MrHuattt
    ·2021-12-20
    H
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    • OddEyeCircle
      hi Richard I hope you
      2021-12-20
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    • MrHuattt
      I
      2021-12-20
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  • Zlatan
    ·2021-12-20
    Ok
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    • hoho03
      boo
      2021-12-20
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  • JCKL488
    ·2021-12-20
    Like it or not, EVs are the future
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  • seojun
    ·2021-12-20
    Oh dear
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  • JayNayHayDay
    ·2021-12-20
    Oh well..
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  • Aaronboy
    ·2021-12-20
    Like please
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  • vaicrazy
    ·2021-12-20
    Hope it is back on track
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    • Zlatan
      no
      2021-12-20
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    • seojun
      right
      2021-12-20
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    • JayNayHayDay
      It will!
      2021-12-20
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  • robot1234
    ·2021-12-20
    America is only good in printing money.  Doesn't have competitive advantage in manufacturing vehicles due to all kinds of human rights regulations and welfarism
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