UAW Calls for Electric Vehicle Tax Incentives Overhaul to Require U.S. Assembly


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United Auto Workers (UAW) vice president Terry Dittes addresses delegates at the “Special Collective Bargaining Agreement” in Detroit, Michigan, the United States, March 12, 2019. REUTERS / Rebecca Cook

The United Auto Workers (UAW) union said on Friday it wanted an overhaul of tax incentives for electric vehicles (EVs) to require the U.S. assembly for these vehicles to be eligible.

The current tax incentive of $ 7,500 does not require electric vehicles to be made in the United States. “The UAW is working with the Biden administration and Congress to ensure that final legislation extending subsidies to electric vehicles makes it clear that these investments subsidize the jobs of American workers,” said UAW vice president , Terry Dittes.

General Motors Co (GM.N) on Thursday announced it would invest $ 1 billion in its operations in Mexico and begin building electric vehicles there in 2023.

Representative Debbie Dingell, Democrat from Michigan, said “Electric vehicles must be built here in America by the best workforce in the world – the American worker. Not a US dollar should support our own jobs shipped to Mexico. . “

The White House did not immediately comment on Friday, but President Joe Biden called for $ 174 billion to boost production, sales and infrastructure of electric vehicles in the United States, including $ 100 billion in rebates for new consumers.

On Wednesday, Biden told US lawmakers “there is no reason that American workers cannot lead the world in the production of electric vehicles and batteries.”

GM responded to the UAW by noting that it “recently announced nearly 9,000 jobs and more than $ 9 billion in new electric vehicle or battery cell manufacturing facilities in Michigan, Ohio and Tennessee “.

Last month, the UAW criticized Ford Motor’s (FN) plan to build a new vehicle in Mexico rather than at a factory in Ohio. Ford said in November that it plans to build an additional electric vehicle at its plant in Cuautitlan, Mexico, where it builds the Mustang Mach-E.

Automotive News quoted a person familiar with the matter as saying Ford was considering building electric vehicles in Ohio and instead decided to assemble them in Mexico. Ford declined to comment.

GM aims to build two Chevrolet electric SUVs in Ramos Arizpe from 2023, according to Sam Fiorani, who tracks future vehicle production for AutoForecast Solutions. GM said it also plans to build batteries and electrical components at Ramos Arizpe.

GM already manufactures electric vehicles at four sites in the United States and Canada. GM has said it aspires to halt U.S. sales of gasoline passenger vehicles by 2035.

Our standards: Thomson Reuters Trust Principles.

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