The UAW wants federal EV rebates only on vehicles built in the US

Shane McGlaun - May 1, 2021, 1:54pm CDT
The UAW wants federal EV rebates only on vehicles built in the US

The UAW is continuing to fight Ford and its plan to move production of one of its electric vehicle models from the US to Mexico. The most recent attempt to thwart Ford’s plans by the UAW comes in the union calling for tax incentives for electric vehicles to require that the vehicles are built in the US. Currently, the $7500 federal tax incentive for the purchase of an electric vehicle doesn’t require that the vehicle is built in the United States.

The UAW says it is working with the Biden administration and Congress to make sure final legislation that extends electric vehicle subsidies is clear that the incentives are only available for vehicles constructed in the US. The UAW says this plan would benefit US workers. Ford isn’t the only automaker moving production of some EVs out of the US.

Recently, GM announced that it would invest $1 billion in Mexico and begin building its EVs there in 2023. Representative Debbie Dingell, a Democrat from Michigan, said that electric vehicles must be made in America, and no American dollars should support jobs being shipped off to Mexico. Pres. Biden said last week that there’s no reason American workers can’t lead the world in electric vehicle production and the production of batteries.

GM’s response to the UAW and its plans to eliminate tax incentives on foreign-built electric vehicles stated that the automaker had recently announced 9000 jobs and more than $9 billion in new electric vehicle or battery cell manufacturing facilities that would be located in Michigan, Ohio, and Tennessee.

Ford previously announced that an EV it was going to build in Ohio would be assembled in Mexico. Ford has offered no comment on the UAW’s plan and there’s no indication at this time that the Biden administration will enact the rules the UAW is calling for.


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