The United Auto Workers Union said it was working with the Biden administration last weekend to ensure any electric vehicle subsidy changes do not apply to cars manufactured outside the US. Small changes can make a huge difference for vehicle drivers who use government money to help sell EVs to American car buyers.
Union vice president Terry Detes said in a statement, “UAV is working closely with the Biden administration and Congress to ensure that the final legislation subsidizing electric vehicles is clear that those investments subsidize American workers’ jobs Give. ” “American taxpayers’ money should never be subsidized on products assembled in Mexico or any other country.”
While there have been previous calls to apply only to American automakers to implement any type of federal tax credit or future EV point-of-sale exemption, further defining any subsidies would prevent US car manufacturers. May have ripple effects. For example, if General Motors built an electric car in Mexico. Although GM is an American automaker, this fictitious EV would not qualify for any subsidy under the UAV’s proposal, as it was not assembled in the US.
It is also no coincidence that when GM actually announced a $ 1 billion investment in its production plant in Ramos Arizpe, Mexico, these discussions were made public over the weekend. The investment will build GM-based future EVs and compliment other North American production sites in the US, according to GM.
Right now, changes in EV subsidies are far from final, but lawmen and Biden have two avenues to take. Is oneIn Congress, which reinvests in the federal tax credit program. It would provide a tax credit of $ 7,000 to someone purchasing an EV. President Biden’s , However, calls for For EV buyers, that would reduce the cost of the car when signing the paperwork at the dealer.