Honda calls electric vehicle tax credit bill “unfair”

Battery and fuel cell electric vehicles are expected to account for 40% of Honda’s sales in North America by 2030.

Local automakers are watching a budget bill recently passed by the House Ways and Means Committee, which, if approved by Congress, would expand the consumer tax credit for electric vehicles and provide an additional $ 4,500 for vehicles manufactured by unions.

The bill introduced by Representative Dan Kildee, D-Mich., Would extend the $ 7,500 tax credit for electric vehicles until 2031, but limit it to sedans costing less than $ 55,000, while Price tags for vans, SUVs, and pickup trucks could not exceed $ 64,000, $ 69,000, and $ 74,000, respectively.

The tax credit would increase by $ 4,500 if the electric vehicle meets “domestic assembly qualifications” in which “the final assembly of such a vehicle takes place in a factory, plant or other location that operates in under a collective agreement ”, according to the bill.

Torrance-based US-based Honda Motor Co. Inc. said in a statement it was “disappointed” with the proposal. He called the union side of the bill “unfair”.

Honda, which operates non-union factories in Alabama, Georgia, Indiana and Ohio, announced in April that it expects battery and fuel cell electric vehicles to account for 40% of its sales in North America by 2030 and 100% by 2040.

“If Congress is serious about tackling the climate crisis, as well as its goal of seeing these vehicles built in America, it should treat all electric vehicles made by American auto workers fairly and equally,” the officials said. Honda executives. “We urge Congress to remove discriminatory language linking unionization to the incentives of its budget reconciliation proposal. “
Honda’s first battery-powered electric SUV, Prologue, is on track to launch in early 2024, along with an all-electric Acura SUV.

Both vehicles will feature a modular EV platform and batteries built by General Motors Co., with Honda developing the exterior and interior designs. The two competitors announced the EV partnership in November, citing the potential for substantial savings in North America.

The new legislation would also remove the cap which granted credits for vehicles manufactured by manufacturers with less than 200,000 units sold, which excluded
GM based in Detroit and Tesla Inc. based in Palo Alto. There is also a credit of up to $ 2,500 for the purchase of used electric vehicles.

Consumers looking to purchase vehicles from Fisker Inc. could benefit from the electric vehicle bill if the company’s U.S. manufacturing operations materialize. The Manhattan Beach-based automaker signed a memorandum of understanding with Foxconn Technology Group to jointly develop a “revolutionary electric vehicle” that it named the Personal Electric Automotive Revolution, or Pear, which is expected to be built by Foxconn and sold under the Fisker brand in the North. America, China and Europe. Fisker is examining pear manufacturing sites in the United States, which may include the Foxconn site in Mt. Pleasant, Wisconsin.

Fisker also plans to launch its Ocean SUV in late 2022. The Ocean will be manufactured by Magna International Inc. at Magna’s plant in Graz, Austria. While Ocean’s $ 37,500 price tag is well below the $ 55,000 limit, it does not meet the “home assembly qualification” stipulated in the new budget bill.

Canoo Inc. in Torrance and Faraday Future Intelligent Electric Inc., based in Gardena, are in a similar boat with offshore manufacturing in place while domestic operations are underway.

Canoo plans to open an electric vehicle plant in Oklahoma by 2023. In the meantime, it has hired the independent Netherlands-based subcontractor VDL Nedcar to produce vehicles for the US and European markets. .

Faraday is investing around $ 90 million to renovate a plant in Hanford, about 200 miles north of Los Angeles, where he plans to build his FF 91 crossover, which is slated to launch in 2022. The facility is expected to be commissioned. by the end of the year and have the capacity to produce 10,000 vehicles per day. Another manufacturing plant in South Korea – a former GM plant – is expected to open in 2023 and produce up to 270,000 vehicles per year.

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