CEOs of GM & Ford have urged Congress to raise maximum on EV tax credits

• The CEOs of General Motors, Ford, Stellantis, and Toyota North America have urged Congress to remove a sales cap on the federal government’s $7,500 electric vehicle tax credit.
• The CEOs argue that credit is crucial for vehicle affordability in the face of rising manufacturing and commodity costs.
• To date, GM and Tesla are the only automakers to have surpassed the limit.

DETROIT, MI: General Motors, Ford Motor, Chrysler parent Stellantis, and Toyota Motor North America CEOs are lobbying Congress to lift the federal government’s cap on the number of vehicles qualifying for a $7,500 tax credit, which they claim will stimulate customer adoption of the cars and trucks.

The executives argue the credit, which begins phasing out once a manufacturer sells 200,000 plug-in electric vehicles, is critical to keeping the vehicles inexpensive as production and commodity costs grow.

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“Eliminating the cap will incentivize consumer adoption of future electrified options,” the letter states.

So far, only GM and Tesla, the industry leader in electric vehicles, have exceeded the limit. Other automakers, though, are likely to approach the 200,000 mark as they launch a slew of new electric vehicles.

The letter, which was first reported by Reuters, instead suggests that the tax be phased out after the EV market has matured.

“The coming years are critical to the growth of the electric vehicle market and as China and the EU continue to invest heavily in electrification, our domestic policies must work to solidify our global leadership in the automotive industry,” the letter states.

The letter also mentions that the four businesses have agreed to invest more than $170 billion in EV development, production, and sales through 2030, with a near-term investment of more than $20 billion in the United States.

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For years, GM CEO Mary Barra and other Detroit automakers have advocated for the cap to be lifted in order to provide a level playing field. They claim that the current strategy punishes early users of new technologies.

The letter was addressed to Senator Chuck Schumer, Senator Mitch McConnell, House Minority Leader Kevin McCarthy, and House Speaker Nancy Pelosi. Barra, Ford CEO Jim Farley, Stellantis CEO Carlos Tavares, and Toyota North America CEO Tetsuo “Ted” Ogawa all signed it.