CEOs of GM, Ford and others urge Congress to lift EV tax credit cap

The all-electrical Chevrolet Silverado at the New York Auto Present, April 13, 2022.

Scott Mlyn | CNBC

DETROIT – The CEOs of Typical Motors, Ford Motor, Chrysler mum or dad Stellantis and Toyota Motor North The usa are urging Congress to raise the federal government’s cap on the variety of autos that are eligible for a tax credit of up to $7,500, a shift they say will motivate customer adoption of the autos and vehicles.

In a joint letter Monday to congressional leaders, the executives say the credit rating, which starts phasing out once a enterprise sells 200,000 plug-in electric powered vehicles, is necessary to continue to keep the motor vehicles very affordable as output and commodity expenses increase.

“Reducing the cap will incentivize client adoption of potential electrified selections,” the letter states.

GM and Tesla, the sector chief in electric vehicles, are the only businesses that have exceeded the restrict so considerably. But other automakers are also predicted to in the vicinity of the 200,000 mark as they release an array of new electric items.

The letter, which was very first reported by Reuters, rather recommends a sunset day for the tax as soon as the EV industry is much more mature.

“The coming years are essential to the expansion of the electric car or truck current market and as China and the EU continue on to spend intensely in electrification, our domestic guidelines ought to function to solidify our world leadership in the automotive business,” the letter states.

The letter also notes that the four companies have pledged to commit far more than $170 billion as a result of 2030 to bolster EV progress, production and gross sales, together with around-expression investments of additional than $20 billion in the U.S.

For a long time, GM CEO Mary Barra and other executives with the Detroit automaker have urged that the cap to be lifted to develop a degree taking part in industry. They say the current policy penalizes early adopters of the technologies.

The letter was addressed to Senate Bulk Leader Chuck Schumer, Senate Minority Chief Mitch McConnell, Dwelling Minority Chief 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 usa CEO Tetsuo “Ted” Ogawa.

Correction: Kevin McCarthy is Home minority chief and Nancy Pelosi is speaker of the Home. An previously version misstated their titles.