GM, Toyota, Other Automakers Oppose US's EV Bill: Report

A group representing General Motors Co GM, Toyota Motor Corp TM, Volkswagen AG VWAGY, and others saw the U.S. Senate's $430 billion bill jeopardizing the country's electric-vehicle adoption targets for 2030, Reuters reports.

"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."

The group had warned that most EV models would not qualify for a $7,500 tax credit for U.S. buyers under the bill.

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The automakers need to assemble the vehicles in North America to avail of the credit, which would make some current EVs ineligible.

After 2023, vehicles with batteries that have Chinese components could not receive the credit, while critical minerals also face limitations on sourcing. The bill creates a $4,000 tax credit for used EVs. 

The package provides billions in new funding for EV production and $3 billion for the U.S. Postal Service to buy EVs and battery-charging equipment.

The new EV tax credits would be limited to trucks, vans and SUVs priced no more than $80,000 and cars up to $55,000. Families with adjusted gross incomes of up to $300,000 would be eligible.

President Joe Biden set a target for electric and plug-in electric vehicles to comprise half of the new vehicle sales in 2030.