Ford, Toyota And GM Fiercely Oppose Strict New EV Tax Bill

The outcry surrounding recentlyproposed changes to federal tax creditsfor electric vehicles sold in the United States shows no sign of letting up. The new bill initially seemed promising as it scrapped the 200,000-unit production cap that had already been surpassed by Tesla and General Motors.

Unfortunately, once we analyzed the new rules in full, we found thatonly 12 current EVs would qualify, including theVolkswagen ID.4and Nissan Leaf. Leading carmakers are understandably perturbed but a last-ditch attempt by Ford, Toyota, GM, and others to change the Democrats' proposed bill is underway. These carmakers, along with Stellantis, are currently making their case to lawmakers as the Senate aims to pass the bill in the days ahead.

According to aBloombergreport citing people familiar with the matter, the automakers need more time to meet the content requirements of the new bill. At the very least, the start of those requirements should be extended by "multiple years".

Smaller companies like Rivian have barely had time to take advantage of the $7,500 tax credit but nowmany of its vehicles could be ineligible for it entirely. That's because of a price cap of $55,000 for new cars and $80,000 for pickups and SUVs.

"If the legislation is passed as drafted, it pulls the rug out - it cuts Rivian out entirely," said James Chen, vice president of public policy for Rivian, since models like theR1Tpickup will cost over $80k for pricier trims. "Congress is throwing up a big stop sign to American-made electric trucks and SUVs."