German car manufacturers are criticizing Biden ‘plans to supply electric vehicles

German car manufacturers have criticized US President Joe Biden’s proposal to provide greater support to American electric car buyers from allied manufacturers than to imported or manufactured brands by non-aligned manufacturers.

As part of the White House Make the Best Bill, awaiting Senate approval, new battery-powered and hybrid vehicles in the US have levied $ 12,500 each on taxes.

Of that amount, $ 4,500 is available only to buyers of US-made cars and manufacturers with co-workers. Another $ 500 total subsidy applies to US-powered battery-powered cars.

“Market capitalization thrives when you have a good idea as well [the] the same rules for all participants in the market, the playing field, “Ola Kallenius, Daimler’s chief executive, told the Financial Times.

Support for German electric vehicles is available to all consumers regardless of where the cars are manufactured. Kallenius urged the US to follow suit and “let the market choose”.

The German auto operator, VDA, also criticized the plan.

“Unilaterally monetized investment strategies are in conflict with the Atlantic alliance, which we can do better to expand rather than reduce,” said VDA President Hildegard Müller. “Now we need to work together to achieve climate change. New trade disputes should be avoided. ”

German manufacturers produced more than 742,000 vehicles in the US last year, according to the VDA, and employed more than 60,000 people. Volkswagen Audi and VW models are some of the best sellers of non-electric vehicles in the country, as well as BMW.

However, Audi does not have US seeds, while the VW and BMW factories or Daimler Mercedes-Benz seeds are not compatible.

“I want to remind everyone of that [at] Mercedes-Benz and Daimler Truck employ 22,000 people in the United States, ”said Kallenius,“ and if you look at all the vendors who work with us, thousands of other services that fit all of these, so we are ready for more work. most American company as well “.

Toyota, whose U.S. counterparts also disagreed, criticized the rule, saying the law “states that having more electric vehicles on the road is a second step towards strengthening cooperation”.

The Japanese company said promotions urging people to urge their Washington representatives on the issue, arguing that U.S. consumers should not “pay extra $ 4,500 to buy an electric car not manufactured by Ford, GM or Chrysler”.

Twelve ambassadors from countries with large automotive industries wrote to U.S. lawmakers in October criticizing the offer, while the European Commission called on lawmakers to reconsider proposals that could lead to “unfair discrimination against EU car manufacturers and vehicles”.

Electronic models made by several US car manufacturers, such as Ford, are also excluded from the whole subsidy because they assemble some of their cars in Mexico.