CEOs of GM, Ford and other automakers urge Congress to lift electric vehicle tax credit cap

DETROIT — The CEOs of Normal MotorsFord Motor, Chrysler parent Stellantis and Toyota Motor North The united states are urging Congress to elevate the federal government’s cap on the amount of motor vehicles that are eligible for a tax credit history of up to $7,500, a move they say will really encourage client adoption of the cars and trucks.

In a joint letter Monday to congressional leaders, the executives say the credit history, which starts phasing out as soon as a firm sells 200,000 plug-in electrical motor vehicles, is important to preserve the automobiles affordable as output and commodity costs rise.

“Eliminating the cap will incentivize customer adoption of long term electrified selections,” the letter states.

GM and Tesla, the market chief in electric powered vehicles, are the only companies that have exceeded the restrict so much. But other automakers are also predicted to close to the 200,000 mark as they release an array of new electrical solutions.

The letter, which was very first claimed by Reuters, as an alternative recommends a sunset date for the tax after the EV market is additional experienced.

“The coming a long time are crucial to the progress of the electric auto market and as China and the EU go on to commit heavily in electrification, our domestic policies ought to get the job done to solidify our worldwide leadership in the automotive business,” the letter states.

The letter also notes that the four corporations have pledged to make investments extra than $170 billion by means of 2030 to bolster EV progress, production and profits, such as in close proximity to-phrase investments of more than $20 billion in the U.S.

For decades, GM CEO Mary Barra and other executives with the Detroit automaker have urged that the cap to be lifted to generate a stage enjoying subject. They say the present coverage penalizes early adopters of the systems.

The letter was resolved to Senate The greater part Leader Chuck Schumer, Senate Minority Chief Mitch McConnell, Home Minority Leader Kevin McCarthy and Speaker of the House Nancy Pelosi. It was signed by Barra, Ford CEO Jim Farley, Stellantis CEO Carlos Tavares and Toyota North The united states CEO Tetsuo “Ted” Ogawa.