Automakers Express Concern Over Senate Bill
Aug. 8, 2022—A group representing major automakers said the approved $439 billion bill passed by the U.S. Senate adversely affects the electric vehicle adoption target year of 2030.
"Unfortunately, the EV tax credit requirements will make most vehicles immediately ineligible for the incentive," said the Alliance for Automotive Innovation's chief executive, John Bozzella, adding the bill "will also jeopardize our collective target of 40-50% electric vehicle sales by 2030."
According to the Reuters story, the fear of automakers is that most EVs will be disqualified for the $7,500 tax credit. The eligibility requirement states that vehicles must be assembled in North America, which would impact European and Asian models immediately.
The bill also requires automakers to source certain percentages fo battery components from North America, a move that puts pressure on China.
The bill also creates new funding for EVs, a $4,000 tax credit for EVs, and more. New EV tax credits—which have limitations and requirements for eligibility—expire in 2032.