Honda And Toyota Join A Coalition Against A Proposed EV Credit

The federal government is currently working on new legislation that could modify some of the federal incentives on the purchase of an electrified vehicle. One component of the proposed legislation would include federal rebates for the purchase of some used electric vehicles. However, a proposed $2500 EV discount would only be available on the purchase of an electric vehicle built using unionized labor.

Honda and Toyota have now joined the coalition speaking out against that proposed EV credit. The EV tax credit is currently $7500, and the proposed changes would increase the maximum credit to $12,500. The additional $2500 of that incentive would be applied for purchasing an EV made in the US.

The other $2500 would be added in if EV was built using unionized labor. Automakers opposing unionized labor credit don't oppose the credit itself. Instead, they want the credit to apply to all EVs. The automakers feel like the credit only for electric vehicles built with unionized labor is discriminatory.

Volkswagen has previously stated that it opposes credits that favor one automaker over another. Honda has now said that production associates in Alabama, Georgia, Indiana, and Ohio, all states that produce electric vehicles using non-unionized labor, shouldn't be penalized for their workplace.

Toyota has said the proposed rebate would unfairly discriminate against autoworkers in the US who chose not to unionize. As it stands now, the proposed additional $2500 EV rebate would only benefit union workers in certain states. Half of the vehicles manufactured in the US by Americans are built in areas where the labor force chose not to join a union. Honda, Toyota, and other automakers and automotive associations are calling for lawmakers to "not play favorites" and offer full incentives for all electric vehicles.