US Pushes Tax Benefits for Unionized Auto 'Big 3'; Foreign Companies Including Hyundai Urge "Withdrawal"

US Democrats Push for Additional $4,500 Tax Credit for Electric Vehicles Produced in US Unionized Factories

[Asia Economy Reporter Yu Je-hoon] As the U.S. Democratic Party is pushing a bill on electric vehicle tax benefits favoring domestic automakers with labor unions, 12 foreign automakers with local production plants have requested its withdrawal. Since many global makers, including Hyundai Motor Company, operate local plants without unions, the bill could potentially give biased advantages only to American companies.

On the 1st (local time), according to Automotive News and others, 12 automakers including Hyundai Motor stated in a letter sent to U.S. House Speaker Nancy Pelosi and Democratic lawmakers that "it would disadvantage American workers who produce more than half of all cars in the U.S. without joining unions."

Earlier, the U.S. House Ways and Means Committee, led by the Democrats, recently passed a bill expanding electric vehicle tax benefits. It includes an additional $4,500 tax credit for electric vehicles manufactured in U.S. plants with union representation. This bill favors the domestic ‘Big 3’ automakers?General Motors (GM), Ford, and Chrysler (Stellantis)?which have United Auto Workers (UAW) unions. Unlike American automakers that started operations with plants in Detroit and other northeastern U.S. areas, foreign automakers have established plants mainly in southern cities where union influence is weak.

U.S. electric vehicle company Tesla is also opposing this policy. Tesla also lacks a union. Elon Musk, Tesla CEO, said, "(The bill) was written by lobbyists for Ford and the UAW," adding, "It is unclear how this benefits American taxpayers."

This content was produced with the assistance of AI translation services.